Two Victorian men have been charged over their alleged involvement in a criminal plot to import over 7 million illicit tobacco cigarettes into Australia from India and Vietnam, as part of AFP Operation KRAKEN.
The pair, a Wollert man, 32, and South Yarra man, 36, are expected to face the Melbourne Magistrates' Court on Monday, 23 September 2024 charged with one count each of conspiracy to import tobacco products and other offences.
Police will allege the men were communicating with criminal entities overseas via the encrypted criminal communications 'Ghost' application to coordinate the importation of 300 boxes containing around 7,460,000 illicit tobacco cigarettes into Australia.
This amount of illicit tobacco illegally imported would equate to the evasion of an estimated $10 million in excise tax, view the ATO excise duty rates
The investigation, known as Operation KRAKEN-RYLOTH, was launched thanks to intelligence obtained through the AFP's disruption of the encrypted platform.
The AFP executed a number of search warrants in the Melbourne suburbs of South Yarra and Fraser Rise today (Tuesday 17 September), where police located and seized $60,000 in illicit cash, dedicated encrypted communications devices, mobile devices and laptops from the properties.
Police arrested the men, and they were later charged at AFP HQ.
The Wollert man, 32, has been charged with:
- Conspiracy to import tobacco products with the intention of defrauding the revenue, contrary to section 233 BABAD(1) of the Customs Act 1901 (Cth), by virtue of section 11.5 of the Criminal Code 1995 (Cth); and
- Failing to comply with an order under section 3LA(6) of the Crimes Act 1914 (Cth).
The South Yarra man, 36, has been charged with:
- Conspiracy to import tobacco products with the intention of defrauding the revenue, contrary to section 233BABAD (1) of the Customs Act 1901 (Cth), by virtue of section 11.5 of the Criminal Code 1995 (Cth); and
- Dealing with money reasonably suspected of being an instrument of crime, contrary to section 400.5(2) of the Criminal Code 1995 (Cth)
If convicted the men face a maximum sentence of ten years' imprisonment.
The investigation is ongoing.
