Two men have been charged over an alleged conspiracy to defraud the Federal Government of $337 million in an alcohol importation fraud.
The men are accused of orchestrating a complex scheme to avoid paying duty on alcohol which was being imported into the country and then fraudulently claiming duty refunds on alcohol they exported.
The men, aged 49 and 50 from Caroline Springs in Victoria, have each been charged with conspiracy to defraud the Commonwealth and dishonestly causing a loss by way of joint commission offending.
Following an Australian Border Force (ABF) investigation it is alleged that between 2017 and 2019 the two men operated a business out of several warehouses in Ravenhall, Victoria.
The ABF operation uncovered evidence the men conspired to illegally smuggle alcohol into Australia, and then export substituted alcohol from Australia, claiming back duty from the Commonwealth that had not been paid in the first instance.
The men would import spirits and beer, pay the duty on wrongly declared goods at a reduced value, then remove the spirits, including gin, whiskey and vodka, and sell them into the Australian domestic market.
They would then export the beer, claiming there were spirits in the containers, which allowed them to claim a higher amount of duty back from the Commonwealth.
Once the alcohol was imported into their licensed warehouse the men would move the goods to another warehouse they operated, smuggling out spirits and packing containers with beer before exporting those containers wrongly declared as spirits.
The alleged fraud is calculated at $337,860,406.19 over the period. The men were part of an international syndicate orchestrating the scheme.
Acting Superintendent Steve Orme, Regional Investigations Maritime and Enforcement South, said: “These charges send a strong message to the community. If you engage in criminal behaviour under the Criminal Code Act, you can expect to face the full force of the law," A/g Superintendent Orme said.
“We will not hesitate to investigate and prosecute allegations of serious fraud. These charges should serve as a warning to anyone considering taking part in criminal activities – you will be caught and you will be held to account."
“The Australian border is our most critical national asset and we will not allow its integrity to be undermined."
The maximum penalty for each of the charges is ten years in prison. The men will appear at Melbourne Magistrates' Court on September 25.
