Police seize $12 million of illicit tobacco in joint Victorian taskforce raid on Arcadia property

More than $12 million worth of illegal tobacco has been seized as part of a joint operation by Victoria Police and the tax office.

The haul was found after police searched a remote property at Arcadia, in central Victoria, a home at Undera, near the Victoria-NSW border and properties in Melbourne’s southwest over several months.

An illicit tobacco crop covering nearly three hectares was found at the rear of the property at Arcadia on March 26 in a combined operation by Victoria Police and the Australian Taxation Office.

The crop was worth almost $9 million and had a dried weight over four and a half tonnes.

In May, two large kilns were found at the rear of the house in Undera, which investigators will allege were used to dry the tobacco.

Almost two tonnes of dried tobacco, worth more than $3.5 million, were seized from that address, where no one was present.

All of the illicit tobacco was disposed of and five firearms improperly stored at the property were also seized.

A 73-year-old man, not believed to be connected with the tobacco investigation, was served with a notice of suspension and a proposal to cancel a firearms licence.

Three warrants were executed at linked properties in Werribee and Altona Meadows in June as part of a joint investigation with Western Australia Police.

About 50,000 illicit tobacco sticks, 30kg of loose-leaf tobacco, vapes and a CCTV system were seized from the Werribee addresses – one house and one tobacco store.

A 36-year-old Werribee man, believed to own the store, was interviewed on June 26 over possessing and producing illicit tobacco.

He is expected to be charged on summons.

Police will allege the properties searched are linked to a significant leader of an organised crime syndicate involved in the illicit tobacco network.

Victoria Police Detective Acting Superintendent Mark Hatt said the hauls should be a warning to anyone in regional areas holding illicit tobacco.

“We will target anyone at any level across the state who is involved in the distribution and sale of illicit tobacco, and that involves regional Victoria,” he said.

“There seems to be a mistaken belief that you are safe from being targeted and out of constant law enforcement attention in country areas.

“This could not be further from the truth.”

ATO Assistant Commissioner Jade Hawkins said major works were in place to dismantle organised crime syndicates.

“Engaging in the illicit tobacco trade is a serious offence and is far from victimless,” she said.

“Illicit tobacco retailers gain an unfair price advantage over honest businesses who do the right thing.”