A major money-laundering syndicate accused of washing more than $150 million in criminal proceeds and linked to large-scale illicit tobacco importation has been dismantled following a joint Australian Federal Police and NSW Police Force investigation.
Four men have been charged after coordinated raids across western Sydney, supported by AUSTRAC and the Australian Border Force–led Illicit Tobacco Taskforce. Officers executed 14 search warrants at homes and storage sites, seizing 10 tonnes of illicit tobacco, more than $200,000 in cash and a money-counting machine.
The investigation, launched in May 2025, targeted a criminal network believed to be laundering funds for organised crime groups. Police allege the operation relied on “straw directors” — people paid to open bank accounts and register fake companies, which were then taken over by syndicate members and used to move large sums of criminal cash.
The money was allegedly layered through a series of complex, high-volume transactions, sent offshore and then returned to Australia disguised as legitimate business payments. Financial records showed almost no legitimate business expenses such as rent, insurance or tax.
A 38-year-old alleged senior syndicate member was arrested during a raid at his Dundas Valley home on 8 December, where police seized several mobile phones. He is accused of managing multiple straw directors and laundering about $23 million through the network. He has been charged with three counts of dealing with proceeds of crime worth $1 million or more and was refused bail to appear before the NSW Bail Court.
A second alleged member, a 29-year-old Merrylands man, was charged on 14 November with laundering more than $7.8 million. A search warrant executed at his home uncovered four mobile phones, bank cards, a pistol revolver, ammunition and documents. He faces multiple Commonwealth proceeds-of-crime offences, firearm charges and two counts of failing to comply with a digital evidence access order. He was refused bail and is due back in Parramatta Local Court in January 2026.
NSW Police also arrested two men on 8 December after search warrants were executed in Burwood, Auburn and Wentworth Point. Officers located $108,000 in cash, about 1.1 million illicit cigarettes, 2kg of loose-leaf tobacco, a Rolex watch and electronics. A truck stopped in Chester Hill soon after was allegedly carrying another 1 million illicit cigarettes, bringing the total seized to 2.1 million with an estimated street value of $2.1 million.
A 32-year-old man has been charged with possessing tobacco 50 times more than the commercial quantity and dealing with proceeds of crime under $100,000. Another man, aged 26, has been charged with knowingly dealing with proceeds of crime and failing to comply with a digital evidence access order. Both were refused bail.
Through the AUSTRAC-led Fintel Alliance, multiple bank accounts linked to the syndicate have been frozen as inquiries continue.
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