Gladstone Urban Tobacconist store operator Suat Palas fined $60k

A Qld tobacconist has copped a massive fine and is subject to an ongoing investigation after raids of his lucrative store uncovered thousands of illegal vapes, tobacco and a trail of transactions.

Suat Ismal Palas, 29, and (inset) the Urban Tobacconist store at 31 Tank Street, Gladstone.

A man whose Central Queensland tobacconist store was raided by authorities has been hit with a $60,000 fine for illegal activity.

Suat Ismal Palas, 29, pleaded guilty in Gladstone Magistrates Court to several offences under the Tobacco and Other Smoking Products Act, and the Medicines and Poisons Act including supplying illicit tobacco, selling bongs or components of bongs, supplying hazardous poisons (nicotine) and sale of confectionary-flavoured or fruit-flavoured cigarettes.

The offences related to the Urban Tobacconist store Palas was operating at Tank Street, Gladstone Central, and included the sale of illegal items.

For the prosecution, Barrister Laura Dawson for Queensland Health, said Palas had “been on the radar” of the Central Queensland Public Health Unit since 2022.

Ms Dawson said in September, 2022, the Public Health Unit attended the Tank Street store to conduct an audit.

“At that time, personal vaporisers and bongs were found at the premises - no action was taken at that time as it was not possible to identify the owner of the business with certainty,” Ms Dawson said.

She said following further investigations, Palas was found to hold an Ergon Energy account for the address.

Ms Dawson said checks with Commonwealth Bank showed Palas held an account and was the only signatory on the device for “Square” - which was the payment system then used at the Urban Tobacconist store.

She said analysis of the payment system showed, between June 30, 2023 and August 31, 2023, a total of 33,814 items were purchased by customers who paid by card.

“So, the estimated value of those sales put through the square point of sale system was $769,768 - and that’s just between 30 June and 31 August,” Ms Dawson said.

The Urban Tobacconist store at 31 Tank Street, Gladstone.

She said there was limited account of cash sales.

Ms Dawson said further investigations showed Palas held the lease for the address.

The court heard that on August 29, 2023, environmental health officers and Gladstone police officers executed a warrant to inspect the Tank Street Urban Tobacconist store.

Ms Dawson said authorities seized 2948 personal vaporisers and subsequent testing showed all of those contained nicotine - they were for sale without authorisation.

She said 356 bongs were also seized along with 304 components of bongs.

Ms Dawson said officers also found a commercial quantity of illicit tobacco - 8715 packets of illicit cigarettes and 475 pouches of loose tobacco.

Ms Dawson described the offending as “serious” and also said some of the investigations into Palas were still ongoing.

Suat Ismal Palas, 29, at Gladstone Courthouse.

In relation to the Tobacco and Other Smoking Products Act offences, Ms Dawson submitted for a fine between $60,000 and $80,000.

And for the Medicines and Poisons Act offences, she submitted for a fine between $30,000 and $40,000.  

Ms Dawson said Magistrate Mary Buchanan could impose a global fine.

The prosecution also sought forfeiture of the items seized from the Tank Street Urban Tobacconist store and costs for their disposal.

From the outset, Palas’ lawyer John Kahn asked for a “significantly lesser” penalty than what the prosecution submitted for, saying that lots of the (previous comparable) cases before the court dealt with companies rather than individuals, as Palas was.

Mr Kahn said a global fine of less than $30,000 for all of the offending would be appropriate.

Suat Ismal Palas, 29.

The lawyer said while “a number” of things relating to the Tank Street Urban Tobacconist business were under Palas’ name, “that doesn’t necessarily mean that beyond reasonable doubt he’s responsible for everything that’s going on in the shop.”

“But he’s still taking the responsibility and in my submission, there is some utilitary value in the plea at the earliest opportunity,” Mr Kahn said.

In relation to the prosecution’s submission about some of the investigations being ongoing, Mr Kahn told Magistrate Buchanan that Palas had transferred his interest in the business “as of August of last year”.

“So, he’s no longer part of the... business.”

Mr Kahn said there was nothing before the court to suggest that Palas had continued to disregard the law.

Mr Kahn said Palas was born in Turkey, he moved to Australia when he was six years old, and he currently lived in the Kensington area in the Bundaberg region.

The lawyer said Palas had operated the Tank Street Urban Tobacconist since 2022 and he was currently not working.

“He’s still waiting to get paid for the sale of the business,” Mr Kahn said.

“He sold the business for around $50,000.”

Mr Kahn said Palas had “limited capacity” to pay a fine with only $20,000 savings in his sole bank account.

He said Palas, who wanted to open a cafe in the future, was remorseful for his offending and he’d “left the business and the industry.”

The prosecution told Magistrate Buchanan that it did not accept Palas was no longer involved in the tobacco industry and it also did not accept that he was a man who had $20,000 to his name.

During sentencing, Ms Buchanan said the current legislation allowed for the same penalties for individuals and companies but she took into account Palas was an individual.

Ms Buchanan fined him $60,000 and ordered he pay disposal costs for the seized items.

Originally published as Gladstone Urban Tobacconist store operator Suat Palas fined $60k