An international crime syndicate has allegedly used an unlikely Melbourne location to shift millions of dollars: a small takeaway shop in the city’s north.
Detectives were tipped off to cash drops and collections at the Somerton store earlier this year, but it took an eight-month investigation for them to uncover what police describe as the alarming scale of the operation.
Detective Inspector Graham Banks. Credit: Chris Hopkins
A total of $83 million in cash had been delivered to the store since May 2021, police said on Friday.
“Police believe this money is the laundered proceeds of criminal activity of a serious and organised crime group,” Detective Inspector Graham Banks of Taskforce Lunar said.
“Yesterday, two men were arrested in relation to this investigation, which is ongoing, and during search warrants that were executed, approximately $7.2 million worth of illicit tobacco was seized.”
Detectives allege the takeaway operation was linked to Iraqi organised crime entities overseen by drug trafficker and tobacco kingpin in exile Kazem “Kaz” Hamad and was funnelling money offshore to people directing other crimes in Victoria and Australia more broadly.
Hamad was deported to his home country, Iraq, in July 2023 but has been a central figure in Melbourne’s so-called tobacco wars.
He is believed to control about a quarter of the estimated 1300 legitimate and black-market shops selling cigarettes around the state, extorting nearly $1 million a month from tobacco retailers.
The tobacco wars have been linked to more than 100 firebombings and four fatal shootings, including the gunning down of underworld figure and professional boxer Sam “The Punisher” Abdulrahim in January and the daylight execution of Hamad crew member Athan Boursinos, 21, in the northern Melbourne suburb of Wollert last month.
Police allegedly found about $5 million worth of cigarettes in a truck in Melbourne’s west on Thursday.Credit: Victoria Police
“We’re treating this as an organisation that’s involved in the Iraqi serious and organised network,” Banks said. “My observation of that network after two years of investigating it is that Kaz Hamad is across virtually every aspect of it.
Detectives on Thursday arrested a 40-year-old man from Dallas in Melbourne’s north as part of the takeaway shop investigation, and seized almost $2 million worth of tobacco in raids on two local homes, and a business 15 kilometres away in Epping.
The 40-year-old was expected to be charged on summons with possessing a commercial quantity of illicit tobacco and knowingly dealing with criminal proceeds, police said.
Officers also seized about $80,000 in cash, a range of electronic devices, and six high-end watches worth more than $119,000: four Rolexes, a Breitling and a Franck Muller.
Banks said it was easy to lose sight of how money translated in the underworld, but $1 million, for example, could buy an offshore organised crime group 400 stolen cars or 40 semi-automatic pistols with rounds. It could finance 100 arsons or two mid-level hits on underworld figures.
“I would like to say that [this police operation] would have a significant impact on these groups, but the fact is, the volume of money that’s been made over the last five to 10 years in relation to illicit tobacco is really staggering,” he said.
“These groups are seeking control of hundreds of millions of dollars, and we know that’s the quantity that they are sending offshore. While this is a good starting point, it is far from the endgame.”
Detectives also allegedly found about $5 million worth of cigarettes in a truck they stopped in Laverton North, in Melbourne’s west, on Thursday. They arrested the driver, a 34-year-old man from Campbellfield, and seized $100,000 in cash from his home.
They believed the 34-year-old visited the same Somerton takeaway shop. He was also expected to be charged on summons with possessing a commercial quantity of illicit tobacco and dealing with criminal proceeds.
Detectives said that while investigating the takeaway shop they learnt further criminal transactions were happening at an Epping factory.
Investigators from the police criminal proceeds squad and Taskforce Lunar, which is targeting illicit tobacco, have worked on the case, with help from the Australian Border Force and Australian Transaction Reports and Analysis Centre.
The investigation is continuing. Police urged anyone with information to contact Crime Stoppers.
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