Victoria Police raid 34 shops across Melbourne in bid to end Melbourne tobacco wars

Organised crime investigators have seized 700kg of illicit tobacco in country Victoria as part of a major blitz to bring down organised crime tobacco rackets.

Organised crime investigators have seized 700kg of illicit tobacco in country Victoria as part of a major crackdown on major smoke rackets.

Members of the newly formed Lunar taskforce made the seizure after a two-day operation in in which they searched 34 Melbourne shops suspected of being involved in the outlaw trade.

Thursday night’s 700kg seizure of loose-leaf product was made at a rural property on MacGregor Rd, Beveridge.

Police said they had received intelligence it was a storage facility for illicit tobacco.

Six people were arrested during this week’s blitz and a 40-year-old Northcote man was charged with drug offences.

The total seized by Lunar was:

• 53,147 vapes with a street value of more than $1.5m

• 712,385 cigarettes, representing avoided excise of $884,000

• A tonne of loose-leaf tobacco which would total $1.7m in excise dodged

• Industrial tobacco manufacturing equipment

• 2kg of cannabis and $26,000 in cash

• A small quantity of cocaine

• Two ASP batons

Victoria Police, the ATO and Australian Border Force executed warrants across Melbourne this week

“As we’ve seen this year, these organised crime syndicates have very little regard for the harm they are inflicting on the community as part of their battle for illicit tobacco profits,” Detective Superintendent Jason Kelly said.

“We’ve seen a significant number of arson attacks, along with several firearms incidents, and it’s only through sheer luck that no one has been killed.”

34 tobacco stores across Melbourne were raided as part of the Taskforce Lunar investigation.

He added: “We have been clear that this is no longer about simply the investigation of the individual incidents – this is about doing absolutely everything we can to deter, disrupt and dismantle these syndicates.

“This includes the targeting of anyone across Victoria who is involved in the distribution and sale of illicit tobacco, at any level. Ultimately, this is contributing to enabling those organised crime syndicates to operate here in Victoria.”

The raids happened on Wednesday and Thursday this week and saw six people arrested.

One man, a 40-year-old from Northcote was charged and bailed for drug offences. The other five were released pending further enquiries.

Victoria Police’s Lunar Taskforce, Australian Border Force officers and Australian Taxation office investigators, Australian Federal Police officers, the Therapeutic Goods Administration agents and the Sheriff’s Office were all involved in the sweep.

Six people were arrested in the raids and more than $1.4 of products seized.

Shops in Bentleigh, Bacchus Marsh, Broadmeadows, Bundoora, Carlton, Hoppers Crossing, Glenroy, Kurunjang, North Melbourne, Flemington, Northcote, Moonee Ponds, St Albans, Melbourne CBD, Strathmore, Footscray, Melton West, Melton South, Collingwood, West Footscray, Reservoir, Fitzroy, Sunshine, Keilor Downs and Mernda were targeted.

All are believed to be involved in the sale of illicit tobacco.

“The ABF is targeting and seizing record levels of illicit tobacco at the border with tens of millions of illicit cigarettes detected each week in Victoria,” Australian Border Force Commander Clinton Sims said.

“The profits from illicit tobacco are usually funnelled back to organised criminal syndicates, involved in drug trafficking and money laundering.

“These criminal syndicates are sophisticated and run like a business, so they will do whatever it takes to ensure they have a supply and can continue to bring in a profit at the expense of legitimate business owners and the wider community.”

Lunar was announced this month amid increasing concern about firebombings and violent crime connected to the illicit tobacco trade.

The current conflict includes both the physical placement of illicit tobacco into stores, as well as demands for stores to sell the syndicate’s illicit product and to pay a ‘tax’ per week to operate.

Police believe the syndicates are comprised of people from Middle Eastern Organised Crime groups and Outlaw Motorcycle Gangs, who are then engaging local networked youth, street gangs and other low-level criminal to carry out the offending.

This dispute has led to a series of at least 30 serious incidents over the past seven months. This includes 27 suspicious fires predominantly linked to tobacco stores in both Melbourne and regional Victoria.

The homicide squad is also investigating whether the August murder of underworld figure Mohammed “Afghan Ali” Keshtiar was linked to his involvement in the illegal smokes sector.

Taskforce Lunar is comprised of the Gang Crime Squad, Arson and Explosives Squad, Echo Taskforce, VIPER Taskforce, Criminal Proceeds Squad and Financial Crime Squad.

There has been a massive increase in the number of suspected illegal tobacconists operating in Victoria in recent years.

Police say there are now about 1000 tobacco shops, up from 50 five years ago.

“The ATO is focused on working closely with our partner agencies to target the source of illicit tobacco supply,” Assistant Commissioner of the Australian Taxation Office Jade Hawkins said.

“Make no mistake, these crimes are calculated and deliberate, undermining the strength of our economy and our community. They take funding from essential services such as health and education.”

She added: “The trade of illicit tobacco products in Australia has widespread negative consequences across the community. We are committed to disrupting organised crime syndicates that produce and supply illicit tobacco for sale on the black market in Australia.”