The alleged ringleader of an illicit tobacco syndicate has been charged with importing products stashed inside kitchen items and clothing, as investigators warned of more imminent arrests.
Police claim more than seven tonnes of illegal tobacco was brought in over a ten month period, dodging more than $36 million (NZ$40.1 million) in excise taxes.
A violent criminal war between rival groups fighting over the profits of illicit tobacco has waged in Victoria for more than two years, with more than 100 firebombings on tobacco shops and other buildings linked to the conflict.
A Coburg North man, 49, was arrested at a home in Melbourne on Tuesday and police described him as an alleged "ringleader" of a criminal syndicate accused of supplying Melbourne with illicit tobacco.
Investigators allege he tapped into connections or criminal associates working in freight and logistics.
They accuse him of orchestrating the scheme to distribute about 5 million cigarettes, seven tonnes of loose leaf tobacco and more than 5000 vapes over a 10-month period.
Products were allegedly hidden in orders of kitchen items or clothing brought in by air cargo or ship, which were then taken to warehouses and 20 tobacco shops.
Some 70 pallets of alleged illicit tobacco products were seized on Tuesday, with the full scale of the haul to be counted in coming days.
Vapes, tobacco manufacturing equipment, a cash counting machine and other items were seized during six search warrants in Melbourne's north.
The 49-year-old was hit with a string of charges including multiple counts of importing tobacco product with intent to defraud the revenue, supplying vapes and possession of a schedule four poison.
A Meadow Heights man, 29, was also arrested and charged with conspiracy to import tobacco for allegedly moving products across Australia and Victoria.
They were set to face the Melbourne Magistrates' Court later on Thursday.
Australian Federal Police, Victoria Police and Border Force were involved in the probe, launched in November 2024.
Victoria Police Commander Paul O'Halloran said the criminal war between two groups over the profits of illicit tobacco was linked to other violent and serious offending like arson, extortion, money laundering and firearms offences.
"These offences put the broader community at increased risk of harm and already we have seen unnecessary deaths as a result of these arson attacks," O'Halloran said.
"I think the public should feel outraged at the way these groups are reaping millions of dollars while putting the community at immense risk."
AFP Acting Commander Investigations Ray Imbriano said investigators are relentlessly working to bring criminals to justice.
"Illicit tobacco has fuelled unspeakable violence and crime in our communities," he said.
"The joint investigation into this alleged criminal syndicate is yet another step in law enforcement's efforts to dismantle these illicit operations."
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