Victorian detectives are struggling to contain an escalating wave of firebombings and extortion linked to the illegal tobacco trade, with 27 arson attacks on tobacco shops in less than seven months. Police now suspect that a large proportion of the tobacco industry has been infiltrated by serious and organised crime.
The lack of a licensing regime for tobacco sellers has left authorities blind to the scale of the problem. Unlike alcohol retailers or Lotto outlets, there is no register of tobacco shops in Victoria. Detectives have identified more than 800 such stores, many of which police believe are either operated by or paying tribute to organised crime syndicates.
Raids conducted this week alone netted 36,639 e-cigarettes worth over A$1 million and nearly 525,000 cigarettes valued at around A$400,000. The illegal products—both counterfeit and genuine overseas brands—are typically smuggled from China, Southeast Asia, or the United Arab Emirates, bypassing customs and tax collection.
The violence has escalated beyond firebombings. Two execution-style shootings in Victoria this year involved victims with suspected links to the illegal tobacco trade: Robert Issa, killed in Craigieburn, and Mohammed Akbar Keshtiar, murdered in South Yarra. While homicide detectives do not believe either man was killed directly because of tobacco, the trade is increasingly dominated by groups that use violence to enforce their control.
Detective Superintendent Jason Kelly said the trade had been exacerbated by conflict between organised crime networks. “The arsons, the extortions, the firearms-related incidents—what I suspect is that this has been going on for quite a number of years and has now escalated,” he said. In one case, police allege four people involved in extorting a tobacco shop were linked to an outlaw motorcycle gang.
A Victorian government spokesperson said a report by the former commissioner for better regulation, Anna Cronin, was being used to strengthen the Tobacco Act and curb illicit trade. The Commonwealth’s recent ban on importing vaping products without a prescription is also expected to affect the market. The government will respond to the report’s recommendations early next year.
