How local smokers could be funding organised crime

A MIDDLE-aged lady in an overcoat, an older man with a ponytail, a young bloke with his hoody pulled up over his head, who has just stepped out of an early model Holden car, with red ‘P’ plates on the back…

It’s Friday and a steady stream of people are filing into a local tobacco store in a South Gippsland town. What are they buying? Is it illicit tobacco or vapes?

Locals suspect so, and now police say it’s more than likely.

But they’ve warned against making assumptions about individual stores, saying the operators could themselves be the victims, of standover tactics by organised crime.

But, quite apart from the illegal activity, police fear regional towns and their specialist tobacco shops are not immune from the spate of arson attacks over recent months.

And it’s this, rather than the sale of illicit tobacco per se, that has resulted in the establishment of the new Lunar Taskforce.

Acting Commander Jason Kelly of the Victoria Police Crime Command revealed at media conference on Friday, November 24, after a major bust of regional Victorian tobacco outlets, and those supplying the trade of illicit tobacco and vapes, that 500 to 600 of the 800-plus specialist tobacco outlets across Victoria are selling illicit tobacco.

“But it’s dangerous,” he says, “to make assumptions.”

“What we are seeing is tobacco stores that are not necessarily involved in illegal activity. They may have been approached to shut down, or to sell illicit tobacco and what I would encourage the public to do, based on what’s occurred, because it may be that it’s a legitimate victim of someone whose been stood over, for want of a better description, by organised crime.”

So, don’t make assumptions about exactly which tobacco stores in your area may be involved, because they may actually be victims of standover tactics, or they might be among the small minority not involved, but the stats are compelling.

Asked to put a number on how many specialist tobacco shops around the state are involved, Acting Commander Kelly said “it’s a fair percentage”.

“I’ve recently been quoted, on what the industry has indicated from their intelligence, that they are saying between 500 and 600 of the 800-plus stores (are involved), so, it’s a fair percentage.”

And it’s widespread across regional Victoria.

He was addressing the media after it was announced that police across Australia have arrested 25 people, executed 12 search warrants and 22 FPO searches and seized approximately $200,000 in cash and firearms targeting the Comanchero and Finks Outlaw Motorcycle Gangs.

As well as conducting compliance searches at the homes of Finks OMCG patch holders in Berwick, Southbank, Ascot Vale, Metung, Lucknow and Ringwood, where a small quantity of cocaine and steroids were seized from a Southbank address, and cannabis and knuckle dusters from the Lucknow property, they’ve charged a 41-year-old Churchill man, who is a patched member of the Comanchero OMCG, with possession of a prohibited firearm.

As part of the extensive operation targeting Outlaw Motorcycle Gangs, police have also focussed attention on the illicit tobacco trade.

“The VIPER Taskforce yesterday conducted six searches of tobacco stores in the west of the state including Horsham, Stawell, Ararat, Warracknabeal and Nhill. A total of seven people were arrested, and police subsequently seized more than 134,000 illicit cigarettes, 43kg of loose tobacco and 3655 vapes from the businesses, believed to be valued at over $350,000 in total.”

A conducted energy device and baton were also seized.

Police also arrested a 40-year-old Williamstown man who police will allege was delivering illicit tobacco to a Horsham store that day. His vehicle was then searched and illicit tobacco, e-cigarettes and $40,000 cash was seized. He was interviewed and is expected to be charged on summons.

As part of Taskforce Lunar’s investigation, the VIPER Taskforce has conducted over 60 searches of tobacco stores across the state since the beginning of October. At this time, Taskforce Lunar investigators believe the arson attacks on tobacco stores is a result of criminal syndicates in conflict due to competition for profit derived from the illicit tobacco market.

“Police believe the syndicates are comprised of personnel from Middle Eastern Organised Crime groups and Outlaw Motorcycle Gangs, including the Finks OMCG. The current conflict includes both the physical placement of illicit tobacco into stores, as well as demands for stores to sell the syndicate’s illicit product and to pay a ‘tax’ per week to operate.”

“There has been an immense focus on illicit tobacco and associated offending here in Victoria, particularly in relation to the reckless and dangerous arson attacks and firearms related violence.

“We created Taskforce Lunar to lead that investigation and they have been working closely with a number of specialist units as well as regional police.” said Acting Commander Jason Kelly.

“The operation this week has been about putting pressure on those organised crime groups we know are linked to illicit tobacco, no matter what state they are in or what part of the state they are in,” said AC Kelly.

“Regional areas are certainly not immune to this type of offending and those committing these offences in rural locations will absolutely face the same scrutiny.

“We are still seeing these arson attacks occur and tobacco stores involved in the selling of illegal product, despite the significant publicity this investigation has received.

“Again, I want to be clear that police will continue to do everything we can to target those criminal syndicates involved and those who are choosing to benefit from fear and harm to the community.

“We will continue to conduct these operations across Victoria and also work closely with other states to disrupt this criminal activity and hold those involved to account,” he said.

“What we are seeing across Victoria is that illicit tobacco is a problem, statewide and nationally, and what we are doing is identifying linkages between the illicit tobacco trade and Outlw Motorcycle Gangs. So, I am not going to articulate what we know but we do know there is a connection and through the days of action we have just conducted we have targeted both the illicit tobacco retailers, the organised crime syndicates and the Outlaw Motorcycle Gangs.”

He also made an appeal to those who buy illicit tobacco and those who may be “in too deep” selling it.

“My message to anyone running a store is if you are in too deep, then it’s time to come forward. We appreciate that it’s difficult and anyone considering going down the route of selling illicit tobacco, think twice. It’s very difficult to get out of organised crime once you’re in it," said Acting Commander Jason Kelly of the Victoria Police Crime Command.

“To those in the tobacco retail industry who have provided information about organised crime. I thank those who have come forward to date and I would encourage those members of the public to come forward via Crimestoppers 1800 333 000, which can be done anonymously. Any piece of information could be key to bringing the ongoing disruption we are seeing in the illicit tobacco trade brought to a halt and I say that a lot of the activities conducted to date has been based on information provided by the public.

“We know that from our store visits over the past couple of months that not every store, as I have said, is involved in these disputes however, it does have the potential to impact every store across Victoria, including innocent parties.

“For those who purchase tobacco, including illicit tobacco from stores, and I’ve said it before, they are putting money directly into the pockets of organised crime that then funds other activities, including illicit drug importation and firearms activity. So, I would ask members of the public to think twice about buying illicit tobacco.”

Acting Commander Kelly acknowledged that the Health Department through local councils also have a role in enforcing the law where tobacco retailers are concerned, as follows:

* Environmental health officers (EHOs) at Victoria’s local councils are authorised to enforce tobacco legislation. They enforce the laws by: making education visits to tobacco retailers, and undertaking test purchases in retail outlets that sell tobacco to check the outlet is not selling tobacco products to people under 18.

AC Kelly said he would also welcome a beefing up of government legislation that would impact the sale of illicit tobacco and illegal vaping products by tobacco retailers but “that legislation is a matter for government”.

If you have information about the illicit sale of tobacco in your area, especially the involvement of organised crime, you can contact Crimestoppers anonymously on 1800 333 000.