Australian Police Probe Illegal Vaping Network, Freeze $680,000 in Assets

Jul.14.2025
Australian Police Probe Illegal Vaping Network, Freeze $680,000 in Assets
Australia’s AFP, in “Operation Smoke Storm,” froze over AUD 1 million ($680,000) tied to illegal vape sales. Online-branded e-cigarettes and transaction records were seized; funds may support community crime prevention.

Key Points:

 

·Joint law enforcement: The Australian Federal Police (AFP) have joined forces with the Therapeutic Goods Administration (TGA), the financial intelligence agency AUSTRAC, and state crime commissions to form a united front in cracking down on illegal activities. 

 

·This includes targeting individuals through suspicious banking transactions, uncovering storage locations and identifying account controllers. 

 

·Legal deterrents are also in place, with assets being frozen under the Proceeds of Crime Act to disrupt the flow of criminal funds. 

 

·Proceeds from the cases will be used for community crime prevention efforts, with $33.5 million AUD ($22.78 million USD) planned to be invested over the next two years. 

 

·Enforcement operations have been ramped up, with specialized task forces receiving additional funding, including $17 million AUD ($11.56 million USD) allocated to enhance collaboration with local law enforcement.

 


【2Firsts News Flash】According to Mirage's report on July 14th, the Australian Federal Police (AFP) recently froze two bank accounts containing funds totaling over 1 million Australian dollars (approximately 680,000 US dollars) suspected to be proceeds from illegal e-cigarette sales in Sydney and online.

 

This operation stemmed from a joint investigation by AFP and the Therapeutic Goods Administration (TGA). TGA is responsible for enforcing the illegal supply and advertising of e-cigarettes under the Therapeutic Goods Act of 1989. The New South Wales Crime Commission and the Australian Transaction Reports and Analysis Centre (AUSTRAC) also provided support for this operation.

 

The Criminal Assets Confiscation Taskforce (CACT) led by the AFP has successfully applied for a freezing order from the Supreme Court of New South Wales, based on the Proceeds of Crime Act 2002.

 

The investigation, codenamed "Operation Smokestorm," began in May 2025 when the AFP received suspicious account information from ANZ and West Pacific Bank through AUSTRAC.

 

On June 27, 2025, AFP and TGA executed search warrants on storage units in Waterloo and Auburn and issued a freeze order to a man in Rosebury suspected of controlling the accounts involved. Law enforcement officials seized a small amount of online brand e-cigarettes and handwritten lists recording e-liquid flavors and quantities.

 

According to the investigation, these e-cigarettes were sold to retail consumers in Australia through online channels and supplied to local tobacco stores in Sydney. The funds in the frozen accounts may ultimately be confiscated by the federal government. The Therapeutic Goods Administration (TGA) stated that the investigation into this case is still ongoing.

 

Commander Jason Kennedy of the AFP emphasized:

 

"We and our partners will use all means to ensure that criminals cannot profit. Freezing assets suspected of being obtained through criminal activities sends a clear message to criminals - not only do they face imprisonment for their crimes, but their illegal assets will also be confiscated. If the funds are returned to the federal government, they will be used for crime prevention projects that benefit the community."

 

TGA Director Chris Bedford stated:

 

"By cracking down on illegal products and their associated financial networks, we are not only protecting public health, but also demonstrating our determination to eradicate illegal e-cigarette transactions."

 

AUSTRAC Enforcement Division Acting National Manager Markus Erikson pointed out:

 

"The financial intelligence we provide is crucial for solving this type of crime. Through collaboration with banks and other institutions, we are able to monitor suspicious transactions comprehensively."

 

It is reported that the Criminal Asset Confiscation Taskforce has brought together resources and expertise from the AFP, Australian Border Force, Tax Office, Criminal Intelligence Commission and AUSTRAC. Over the next two years, the taskforce will receive $33.5 million Australian dollars (approximately $22.78 million in funding to combat profits from illegal tobacco, with $17 million Australian dollars (approximately $11.56 million) to be allocated to state police forces for collaborative investigations.

 

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