Police smash alleged $150 million tobacco and money-laundering ring in Sydney raids

A joint AFP and NSW Police sting has brought down an alleged money-laundering network accused of washing more than $150 million in criminal proceeds and funnelling illicit tobacco into Sydney.

The breaking of the money laundering and illicit tobacco ring was a joint operation between NSW Police and the AFP. Picture: AFP

A major blitz on organised crime has resulted in a joint taskforce taking down what police say was a Western Sydney money laundering syndicate, which had washed more than $150m in cash linked to the supply of illicit tobacco.

The AFP and NSW Police, supported by AUSTRAC and the Australian Border Force’s Illicit Tobacco Taskforce, executed 14 search warrants on Monday at homes, storage units and businesses across suburbs including Dundas Valley, Merrylands, Burwood, Auburn and Wentworth.

Police say they uncovered a sprawling operation that allegedly used layers of fake companies, straw directors and complex financial transfers to obscure the source of millions of dollars in criminal proceeds.

Officers seized 10 tonnes of illicit tobacco, more than 2.1 million cigarettes, a money-counting machine and over $300,000 in cash, along with a Rolex watch, electronics and a stash of weapons.

An alleged high-ranking member of the syndicate, Haihao He, was arrested during a raid on a Dundas Valley home just after 8.30am.

Four men were charged during the operation. Picture: AFP

Police allege the 38-year-old controlled multiple straw directors and helped launder $23 million through the network. He has been charged with three counts of dealing with proceeds of crime worth more than $1 million and was refused bail to appear in court on Tuesday.

Another alleged syndicate member, a 29-year-old Merrylands man, had earlier been charged in November after police seized mobile phones, bank cards, documents, a pistol revolver and 15 rounds of ammunition during a search of his home. He is accused of laundering $7.8 million and faces multiple proceeds-of-crime, firearm and digital-access offences. He remains in custody ahead of a January court date.

A sophisticated money laundering syndicate accused of washing more than $150 million of criminal cash was broken up. Picture: AFP

NSW Police on Monday also charged two further men following coordinated raids in Burwood, Auburn and Wentworth. Officers seized $108,000 in cash, 1.1 million illicit cigarettes, loose-leaf tobacco and other items.

Just after 8.40am, police intercepted a truck on Christina Rd in Chester Hill, allegedly carrying another 1 million cigarettes, bringing the total haul to 2.1 million with an estimated street value of $2.1 million.

Police seized several tons of illicit tobacco, a money counting machine and more than $200,000 in cash. Picture: AFP

Wucheng Su, 32, has been charged with possessing tobacco more than 50 times the commercial quantity and dealing with proceeds of crime. He was refused bail and is due to face Bankstown Local Court on Tuesday.

Xudong Yao, 26, was charged with knowingly dealing with proceeds of crime and failing to comply with a digital evidence access order. He will front Burwood Local Court on Tuesday after being refused bail.

Officers seized a pistol in the haul. Picture: AFP

Investigators say the syndicate’s laundering model relied on recruiting people to open bank accounts and register sham businesses, handing control of those accounts to syndicate members who then pushed high-volume, complex transactions through them.

Police allege the funds were cycled through multiple domestic and international accounts to appear as legitimate payments, with financial records showing virtually no genuine business expenses.

AUSTRAC and the Fintel Alliance have now frozen multiple bank accounts allegedly tied to the group, while the AFP-led Criminal Assets Confiscation Taskforce is examining further seizures as proceeds of crime.

Police say the operation has significantly disrupted a criminal enterprise spanning financial fraud and illicit tobacco trafficking, with inquiries continuing.

Do you know more? Message 0481 056 618 or email [e-mail]

Originally published as Police smash alleged $150 million tobacco and money-laundering ring in Sydney raids