The Australian Federal Police (AFP), in a multi-agency “Operation Smoke Storm”, successfully froze two bank accounts (totaling more than AUD 1 million (approximately USD 680,000)) suspected of selling illegal electronic cigarettes. Online brands of vapes and transaction records were seized, and the funds may be returned to the Commonwealth for community crime prevention.
Core Watch:
- Joint law enforcement: The Australian Federal Police (AFP) joined forces with the Therapeutic Goods Administration (TGA), the financial intelligence agency AUSTRAC, and state crime commissions to form a law enforcement synergy
- Precision strikes: Targets were locked through bank STRs, and warehousing dens and account controllers were seized
- Legal deterrence: Assets were frozen under the Proceeds of Crimes Act to cut off the chain of criminal funds
- Subsequent disposal: The funds involved in the case are intended to be invested in Community crime prevention. The next two years will be invested 33.5 million Australian dollars (about 22.78 million U.S. dollars) to strengthen the fight
- Law enforcement upgrading: The task force has been supported by special funds, of which 17 million Australian dollars (about 11.56 million U.S. dollars) has been allocated to strengthen the coordination of the local police force
Australian police investigate an illegal vape sales network
The Australian Federal Police (AFP) recently froze two bank accounts totaling more than A$1 million (about $680,000), suspected to be the proceeds of crime from the sale of illegal vapes in Sydney and online. Mirage reported on July 14th.
The action stems from a joint investigation by the AFP and the Therapeutic Goods Administration (TGA). It is responsible for cracking down on the illegal supply and advertising of vapes under the Therapeutic Goods Act 1989. The NSW Crime Commission and the Australian Transaction Reports and Analysis Center (AUSTRAC) also supported the operation.
Freezing of $680,000 in funds
The AFP-led Criminal Asset Confiscation Taskforce (CACT) successfully applied for a freezing order in the NSW Supreme Court. This was decided under the Proceeds of Crime Act 2002.
The investigation, codenamed Operation Smokestorm, began in May 2025 when the AFP received information through AUSTRAC about suspicious accounts at ANZ and Westpac.
Precision strikes
On June 27, 2025, AFP and TGA executed search warrants at storage units in both Waterloo and Auburn and issued a freezing order to a Rothbury man suspected of controlling the accounts involved. Law enforcement seized a small number of online-branded vapes and handwritten lists documenting the flavors and quantities of tobacco oils.
According to the investigation. The vapes were sold to Australian retail consumers through online channels and supplied to local tobacco stores in Sydney. Funds in the frozen accounts may eventually revert to the federal government, and the TGA says its investigation into the case is ongoing.
Legal deterrence
AFP Commander Jason Kennedy emphasized:
- “We and our partners will use all means to ensure that criminals cannot profit. Freezing assets suspected to be the proceeds of crime sends a clear signal to criminals – not only do they face imprisonment for their crimes, but their illegal assets will be recovered. If funds are collected for the Commonwealth, they will be used for crime prevention programs that benefit the community.”
Subsequent disposal
TGA Acting Director Chris Bedford said:
- “By cracking down on illegal products and the money networks behind them, we are both protecting public health and demonstrating a strong commitment to outlawing the illegal vape trade.”
Markus Erikson, Acting Country Manager for Enforcement at AUSTRAC, noted:
- “The financial intelligence we provide is vital in detecting this type of crime. By working with banks and other organizations. We can comprehensively monitor suspicious transactions.”
Law enforcement upgrading
The Criminal Asset Forfeiture Task Force is said to bring together the resources and expertise of the AFP. The Australian Border Agency, the Inland Revenue. The Criminal Intelligence Commission and AUSTRAC. Over the next two years, the task force will receive A$33.5 million (about US$22.78 million) in grants to combat illicit tobacco profits, of which A$17 million (about US$11.56 million) will be allocated to state police forces for collaborative casework.
