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Two criminal networks that allegedly enjoyed inside access to businesses at Australia’s border have been crushed after ferrying in at least $80 million of vapes and illicit tobacco allegedly uncovered in raids in three states.
Seven ‘trusted insiders’ who allegedly exploited their positions at freight forwarders and mounted warehouses to smuggle illicit products into the country were arrested by multi-agency strike team (MAST) detectives from NSW and federal law enforcement agencies in the past days and weeks, marking the culmination of a months-long probe targeting the networks, police said on Friday.
MAST co-commander John Watson said the insiders were alleged to have “spearheaded” the criminal operations. He alleged they tracked and monitored the consignment of vapes and cigarettes by air and sea, breaking open concealed boxes that had been in a secure facility and shipped through Australia for profit. More than 282,000 vapes worth $21 million were seized in the investigation, which started in May last year.
“It will be alleged that the people responsible that have been arrested are corrupt insiders,” Watson said. “These people are the ringleaders … they were significant people, general managers, owners of the business.”
About $33 million worth of the drug 1-4 Butanediol, which is linked to date rape and sexual assault cases, was seized in early morning raids on seven homes in Sydney, Melbourne and Brisbane.
Police uncovered $2.5 million in luxury watches and handbags allegedly bought with proceeds of crime, $300,000 in gold bullion, two firearms, 350,000 cigarettes, $172,000 in cash and a BMW X5.
Detectives charged two 53-year-old men with directing a criminal group, and with a string of financial crimes, following the raids at properties in Barangaroo and Silverwater, which came as warrants were issued for properties in Bankstown, Cremorne Point and Revesby.
One of the men, Peter Ping Xie, also charged with possessing an unauthorised pistol, was arrested at his Barangaroo apartment.
He was refused bail in Burwood Local Court on Friday and is due to face court again on October 14.
His co-accused, Tingqi Zhou, was also refused bail. He will face court again on October 7.
Kok Loon Chan, 46, was arrested at Sydney Airport on Thursday afternoon, police said. He was charged with participating in a criminal group along with multiple counts of dishonestly obtaining financial advantage by deception and dealing with proceeds of crime. Chan did not apply for bail and will face court again on October 14.
Police said the NSW Crime Commission had seized more than $25 million worth of assets owned by logistics companies linked to the criminal syndicate following raids of 14 properties across NSW and Victoria. The Australian Border Force suspended depot licences for Sydney and Brisbane companies alleged of wrongdoing.
Police will allege that a separate group of insiders was circumventing border controls through a Moorebank freight forwarding company, which oversaw the flow of illicit tobacco from air and sea into the local market. They allege the network had imported 88 consignments in the past three months, before selling the tobacco to wholesale distributors and retailers.
The 26-year-old alleged ringleader of the crew was arrested at his home in Prestons, in Sydney’s west, last week. He was charged with a series of offences related to the alleged criminal network.
About the same time, police raided multiple properties, including at Bass Hill, Roselands, Moorebank and Sefton, allegedly uncovering 51 boxes of illicit tobacco, steroids, and $690,000 in cash.
Watson said the known commodities of both networks totalled $80 million, as he warned about the criminal behaviour “lurking behind” the access points to Australia.
“They are well-organised, and they are well-established, there is no question,” he said.
“The purpose of this investigation has been to unpick everything about their business so that we can take it out and learn more in order to make our investigations better.”
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Daniel Lo Surdo is a breaking news reporter for The Sydney Morning Herald. He previously helmed the national news live blog for The Sydney Morning Herald and The Age.Connect via email.From our partners
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