The alleged "kingpin" of a major money-laundering racket has been charged after a months-long probe identified more than $9 million linked to illicit tobacco and vape revenue, police say.
A 33-year-old man faces up to 20 years in prison following his arrest in a sting in central Darwin on Wednesday that seized thousands of vapes, almost 17,000 nicotine products and more than $70,000 in cash.
The man had effective control of the business, "so he's our kingpin for this operation", police said on Thursday.
He was charged after investigators found the amount of money going through certain Darwin businesses did not line up with what they should be earning, raising "red flags".
The arrest followed a combined operation by Northern Territory Police and the Australian Border Force, with search warrants executed on Wednesday at two city businesses, two homes and a commercial storage facility.
Operation Teton began in May after significant volumes of money being processed through electronic payment facilities associated with certain businesses were identified, police say.
It's alleged that during the past two financial years, businesses associated with the investigation generated around $12.1 million in sales.
"Investigators have identified approximately $9.36 million of that revenue as being directly attributable to the sale of illicit tobacco and vapes," Detective Senior Sergeant Corey Borton told reporters on Thursday.
It's alleged that proceeds of unlawful activity were channelled through merchant payment facilities, company structures and bank accounts.
More than 5500 vapes, 16,500 nicotine products, $73,600 in cash, digital devices and business records were seized in Wednesday's raids, along with a residential property, two motor vehicles, bank accounts and the shares of eight business entities.
Det Sgt Borton said the investigation was "about the money", identifying where criminal proceeds came from, where they went, and who possessed or controlled them.
''If you make money from crime, we will follow the money," he said.
"You can move it through bank accounts, you can purchase property, buy cars, but we're still coming after it."
A 37-year-old man was also arrested on Thursday but was released without charge pending further investigations.
Australian Border Force would continue to work with partner agencies across the country to target criminal networks importing, distributing and profiting from illicit tobacco, Superintendent Amanda Coppleman said.
''Our collective efforts are focused on reducing the harm caused by organised crime operating in the illicit tobacco market and ensuring those who seek to profit from illegal activity are held accountable,'' she said.
The 33-year-old man was charged with money laundering, possessing a prohibited import and supplying vaping goods.
He was set to appear in Darwin Local Court on Thursday.
