$80M BUST: Alleged crime empires brought to their knees

TWO alleged criminal empires operating across Australia’s east coast have been brought to their knees after authorities swooped on more than a dozen properties in three states, seizing or freezing more than $80 million in drugs, vapes, tobacco, cash, luxury goods and assets.

The extraordinary scale of the bust was laid bare on Friday, with authorities revealing they had seized $33 million worth of 1,4-Butanediol, more than $21 million in vapes, almost $1.2 million cash, $2.5 million in luxury watches and designer handbags, and $300,000 in gold bullion.

More than $25 million in assets has also been frozen, while seven people have been charged.

The extraordinary operation follows months of investigations into what police allege were sophisticated crime syndicates using “trusted insiders” to exploit the same legitimate freight and logistics systems relied upon to move goods around Australia every day.

Investigators allege those networks were being used to circumvent border controls and funnel huge quantities of illicit tobacco and vapes into the country through air and sea freight.

The sprawling investigation culminated in a fresh wave of coordinated raids across Sydney, Brisbane and Melbourne on Thursday, bringing together some of Australia’s most powerful state and federal law-enforcement and financial-crime agencies.

At the centre of the crackdown is the Multi-Agency Strike Team (MAST), a formidable 41-officer taskforce combining NSW Police, Australian Federal Police, Australian Border Force, NSW Crime Commission, Australian Criminal Intelligence Commission, AUSTRAC and the Australian Taxation Office.

Image: NSW Police Force

FIRST NETWORK TARGETED

The first arm of the investigation began in May last year when detectives established Strike Force Borderdale to investigate the alleged importation and supply of massive quantities of illicit tobacco and vapes.

Police allege a 53-year-old man and his associates were using a bonded warehouse at Bankstown to circumvent border controls.

The first major breakthrough came earlier this year, on February 3, when investigators, assisted by the Therapeutic Goods Administration (TGA), raided a commercial storage facility and two trucks on Parramatta Road at Burwood.

Inside, authorities allegedly discovered 91,000 vapes worth an estimated $6.8 million and a loaded Glock pistol.

A 28-year-old man was arrested and charged with possessing an unauthorised pistol and using, supplying, acquiring or possessing a defaced firearm.

He was refused bail and faced Burwood Local Court the following day.

Investigators struck again five months later, on July 21, raiding properties at Revesby and Marrickville and uncovering another 191,654 vapes with an estimated street value of $14.3 million.

The TGA is continuing inquiries into the alleged offenders connected to that seizure.

Then, on Thursday, August 13, authorities launched the operation’s biggest offensive yet.

Investigators carried out a coordinated series of dawn raids across Bankstown, Barangaroo, Cremorne Point, Silverwater and Revesby, while Commonwealth search warrants were simultaneously executed in Brisbane and Melbourne.

The haul was enormous.

Image: NSW Police Force

Images: NSW Police Force

Investigators seized 1.65 tonnes of 1,4-Butanediol with an estimated street value of $33 million, together with $300,000 in gold bullion, $1.5 million worth of luxury watches, $1 million in designer handbags, $172,000 cash and 350,000 cigarettes.

Two firearms and a BMW X5 were also seized.

At the same time, the NSW Crime Commission moved against the alleged network’s wealth, freezing more than $25 million in assets.

Those restraints encompass 14 properties across NSW and Victoria, as well as multiple bank accounts and significant shareholdings connected to logistics companies.

The fallout has also extended into the freight industry, with Australian Border Force immediately suspending depot licences in Sydney and Brisbane belonging to a national freight-forwarding company.

A notice of intent to cancel has also been issued in Melbourne.

Three men were arrested during Thursday’s operation.

Image: NSW Police Force

A 53-year-old man was arrested at Barangaroo and charged with six counts of dishonestly obtaining financial advantage by deception, five counts of knowingly dealing with proceeds of crime, knowingly or recklessly directing a criminal group to assist crime and possessing an unauthorised pistol.

He was refused bail to face court on Friday.

A second 53-year-old man was arrested at Silverwater and charged with six counts of dishonestly obtaining financial advantage by deception, five counts of knowingly dealing with proceeds of crime and knowingly or recklessly directing a criminal group to assist crime.

He was refused bail and appeared before Burwood Local Court on Thursday.

A 46-year-old man was arrested at Sydney Airport about 2pm the same day and charged with six deception offences, five counts of knowingly dealing with proceeds of crime and knowingly or recklessly directing a criminal group to assist crime.

He was also refused bail to face court on Friday.

’88 CONSIGNMENTS SINCE MAY’

Running alongside Strike Force Borderdale was a second investigation targeting another alleged illicit tobacco network.

Strike Force Benberta was established in December to investigate allegations a 26-year-old man and his associates were using a freight-forwarding company at Moorebank to circumvent border controls through sea and air freight.

Detectives allege the scale of that operation escalated rapidly.

Since May alone, police allege about 88 air cargo consignments of illicit tobacco were imported into Australia and held at a storage facility before being distributed to stores and wholesale distributors.

Image: NSW Police Force

Investigators moved on the alleged network on August 6, executing six Commonwealth search warrants across Prestons, Bass Hill, Roselands, Moorebank and Sefton.

The raids allegedly uncovered 51 boxes of illicit tobacco, $690,000 cash and steroids.

A 26-year-old man was arrested at a Prestons home and charged with importing tobacco products with intent to defraud revenue, conveying tobacco products knowing of an intent to defraud revenue and dealing with proceeds of indictable crime.

He was granted conditional bail to face Liverpool Local Court on August 27.

Image: NSW Police Force

Image: NSW Police Force

Image: NSW Police Force

A 66-year-old woman was arrested at Roselands and charged with dealing with suspected proceeds of indictable crime greater than $100,000.

She was refused bail and appeared before Bankstown Local Court on August 7, where she was formally refused bail to reappear on August 25.

Further inquiries stemming from the Bass Hill raid led detectives to arrest a 27-year-old man at Bankstown Police Station on Tuesday.

He was charged with conveying tobacco products knowing of an intent to defraud revenue and intending property worth more than $100,000 to be used as an instrument of crime.

He was granted conditional bail to appear before Bankstown Local Court on September 1.

‘QUANTITIES ARE STAGGERING’

NSW Police Drug and Firearms Squad Commander Detective Superintendent John Watson said the operation demonstrated the power of combining state and Commonwealth agencies against organised crime.

“These arrests and seizures show that when Commonwealth and NSW agencies combine their intelligence, powers and capability, organised crime groups have nowhere to hide,” Det Supt Watson said.

“The quantities of illicit tobacco and vapes seized in this investigation are staggering.

“These products are being moved through the same logistics networks that Australians rely on every day.

“Removing them from circulation prevents millions of dollars flowing back into organised crime.”

Image: NSW Police Force

AFP Detective Inspector Dan Burnicle said trusted insiders who exploited positions within legitimate industries posed a significant threat to Australia’s border security.

“The AFP and our MAST partners are committed to identifying those facilitating this organised criminal activity and ensuring they are held accountable,” Det Insp Burnicle said.

NSW Crime Commission executive director of operations Darren Bennett said authorities would now begin the process of attempting to claw back the alleged proceeds of crime.

“As a result of the efforts of the police the NSWCC have been able to restrain over $25 million in assets including 14 properties, motor vehicles, luxury goods and cash,” he said.

“We will start the process aimed at returning the proceeds of crime to the people of NSW.”

Investigations into both alleged criminal networks are continuing.