Two syndicates targeted in gang war over illegal smokes

In the past six months 27 Melbourne businesses have been destroyed by fire and 13 people arrested. (HANDOUT/VICTORIA POLICE)

Almost 30 smoke stores have been firebombed in a Victorian gangland war over illegal tobacco profits, sparking police to create a new taskforce.

In the past six months 27 businesses have been destroyed by fire, 28 of them tobacco shops.

The latest was at Glenroy about 2.30am on Monday.

A BMW station wagon and green Holden sedan went to the store with the BMW ramming a roller door before the business was set alight, prompting the evacuation of a neighbouring apartment block.

The BMW car was found on fire in Coburg about half an hour later and police are still looking for the Holden.

On Sunday, Victoria Police announced Taskforce Lunar to target the organised crime groups warring over the illicit tobacco trade with Monday's attack prompting the addition of more resources.

"It needs to stop and it needs to stop right now," Detective Superintendent Jason Kelly said.

"We believe we know who the major players are in the two syndicates that we believe are now in conflict over the illicit tobacco market here in Victoria, but also more broadly, it's been seen across Australia."

Taskforce Lunar will draw on specialised resources from the gang, arson and financial crime squads, as well federal law enforcement agencies.

The conflict centres both on the physical placement of illicit tobacco into stores and demands for them to pay a weekly "tax" to crime syndicates in order to operate.

Cigarette smoker
Police say crime gangs in Victoria are feuding over illegal tobacco profits.

Police believe Middle Eastern organised crime groups and outlaw motorcycle gangs are recruiting youths and low-level criminals to carry out the offending.

Investigations are being carried out nationally and abroad to find the ringleaders.

"We believe the major players are pulling the strings and they're using other people to commit these arsons that are putting both themselves at risk and they're obviously putting residents and traders at great risk," Det Supt Kelly said.

So far, 13 people have been arrested.

Victoria has between 800 and 1000 tobacco stores and in the past two months police and the Australian Border Force have visited more than 100 to gather information on the dispute.

Det Supt Kelly said the the firebombings showed blatant disregard for community safety and warned that anyone buying illegal tobacco was funding organised crime and fuelling the dispute.

Police are also investigating whether the shooting death of a 27-year-old man in a Cragieburn shopping centre car park on Saturday, along with other public executions of gangland figures, are connected to the tobacco conflict.

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