Police have restrained more than $2.5 million in assets, including four properties in Gisborne, after Customs intercepted undeclared tobacco at the border.
The 110kg of loose tobacco and more than 230,000 cigarettes - approximately 10,000 packets - was found concealed in Chinese tea packets in November last year, bound for residential and business addresses in Napier and Gisborne.
“No importation permits were held for the seized tobacco and cigarettes, and no excise equivalent duties were paid, amounting to around $645,000 in defrauded revenue,” a police spokesperson said.
Further investigations found previous, similar consignments had successfully entered New Zealand and were being sold by a restaurant in Gisborne to the public.
Search warrants by Customs in Gisborne this year found $10,000 in a bedroom, $106,371.20 in a vehicle outside the restaurant and more than 1kg of loose tobacco along with 11,000 cigarettes inside the restaurant.
“The Customs investigation resulted in the seizure of 306,200 cigarettes in total, and charges were laid against four people for various offences under the Customs and Excise Act 2018,” police said.
“With court proceedings still under way, the Police Asset Recovery Unit applied to the court and was granted restraint of the cash seized in the investigation along with further money from bank accounts, as well as four residential properties in Gisborne.”
More than $2.5m in assets has been restrained and a forfeiture of the money and residential properties would be sought by the Police Asset Recovery Unit at the conclusion of criminal charges.
Detective Senior Sergeant Mike Fischer, of the Central Asset Recovery Unit, said the investigation shows the reach of the Criminal Proceeds (Recovery) Act and how closely police work with other government organisations to disrupt the flow of illicit funds.
“Funds sourced from any type of illegal activity can form the basis of criminal proceeds action. In this case, the blatant disregard of the law for personal gain has helped Customs and police uncover a large-scale fraud generating a high amount of income, from an activity that is unfortunately becoming more and more common,” Fischer said.
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Chief Customs officer Nigel Barnes said illicit tobacco was not a victimless crime.
“It takes money out from our communities and puts it in the pockets of organised crime groups that then go on to use the money for other crimes.
“The motive for this offending is you can make a lot of money with low risk – but it’s not actually low-risk, and this is a prime example of how criminals can expect to lose their ill-gotten gains.”
Anyone who knows or suspects someone may be involved in illegal smuggling is asked to call Customs on 0800 WE PROTECT (0800 937 768), a 24-hour confidential hotline, or contact Crimestoppers anonymously on 0800 555 111.