18 September 2024, 1:45pm
Media Release
Op Kraken-Ryloth: Victorian duo charged over alleged plans for illicit tobacco import
Editor’s note: Arrest vision available via Hightail
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.
Note to media
Media are encouraged to include help-seeking information in stories about illicit drugs to minimise any negative impact on people in the community. The following services provide people with access to support and information.
- For free and confidential advice about alcohol and other drug treatment services call the National Alcohol and Other Drug Hotline on 1800 250 015
- Access free 24/7 drug and alcohol counselling online
- Information about drug and alcohol addiction treatment.
More information
Case studies
- Operation Kraken Rishi – Alleged criminal syndicate disrupted in Melbourne, exposed in takedown of Ghost platform
- Criminal syndicate dismantled as part of AFP takedown of encrypted organised crime network
- Six arrested following investigation into criminal syndicate accused of manufacturing false terrorism plot
- NSW-based drug organised crime syndicate dismantled, four men arrested
- Operation Kraken: AFP restrains almost $2 million in assets in WA investigation
- Operation Kraken: AFP charges WA man for allegedly refusing to provide access to an electronic device
- Operation Kraken-Veron: South Australian man charged for alleged role in criminal syndicate
