For the first time, Queensland’s crime watchdog has invoked contentious asset confiscation laws to target individuals accused of dealing in illegal tobacco. The move has led to the freezing of substantial assets belonging to Oliver Bailey, a man who claims to have served in Iraqi military intelligence.
In a Supreme Court action, authorities have locked down $836,000 in cash, bank accounts, and four properties allegedly linked to Bailey’s operations. Ultimately, the state could seek to recover more than $6 million, or any other sum deemed equivalent to the profits from illicit activity.
The Crime and Corruption Commission (CCC) confirmed that this marks the first civil lawsuit using confiscation powers against suspected illegal tobacco sales.
Despite this significant legal action, the case has largely remained out of the public eye. Meanwhile, Queensland’s new Health Minister, Tim Nicholls, has criticised the current $10,000 maximum fines for illegal tobacco sales as inadequate, arguing that financial penalties must be severe enough to deter offenders. However, his office declined to comment on whether he was aware of the CCC’s legal proceedings.
Large-Scale Tobacco Seizures and Criminal Charges
Bailey, 38, was arrested in 2023 following extensive raids on residential properties, storage units, and two tobacco shops in Cleveland and Capalaba, located east of Brisbane.
During the operation, authorities—including Queensland Health, the police, the CCC, and the Australian Taxation Office—seized nearly 3.7 tonnes of loose tobacco, 7.9 million cigarettes, and a substantial amount of cash. Bailey now faces serious charges, including fraud and selling more than 500 kilograms of tobacco in violation of tax laws.
Bailey’s legal representative, Alex Jones, confirmed that his client is contesting both the criminal charges and the asset confiscation proceedings. A court hearing regarding the confiscation matter has been adjourned for now.
Illicit Tobacco Allegedly Hidden in Unusual Places
Court filings suggest that Bailey was directly involved in selling illicit tobacco, with investigators claiming he controlled both legal and illegal sales in his shops. Some products were allegedly sold in clear plastic bags, while others were reportedly in their original packaging but lacked health warnings, a requirement under Australian law.
One of the more unusual discoveries was made in a shop in Capalaba, where investigators found a hole in the wall leading to an adjacent unit. This hidden space allegedly contained over 414 kilograms of loose tobacco and more than 168,000 cigarettes.
Photographic evidence submitted to the court showed stacks of tobacco cartons and loose cigarettes stored in cardboard boxes on tiled floors. It is further alleged that some cigarettes were being sold for as little as $15 per pack, with staff advising customers to pay in cash for the illegal products.
Additional contraband was found in various storage units and properties, with some cigarette cartons allegedly concealed inside audio speakers.
Using transaction data from a Square payments device reportedly used in Bailey’s stores, CCC investigators estimated that sales of products priced below the legal tax threshold totalled approximately $6.65 million.
The Contradictions: A Disability Pension and a Luxury Car
According to CCC filings, Bailey was stopped while driving a Lamborghini Urus in February 2023—despite having never filed tax returns. At the same time, he was receiving a disability support pension, collecting $6,558 in 2023 alone.
Authorities had been monitoring his financial activity and placed alerts on six properties they suspected he had purchased. The CCC argued in court that Bailey had withdrawn at least $200,000 from multiple bank accounts following his bail release in March 2024.
Investigators also raised concerns over a series of property transactions, particularly the sale of a home in Holmview, Logan. A contract was reportedly signed for this property, alongside two others. The CCC further alleged that preparations were underway for the sale of a fourth property.
One particular sale raised red flags—a property was allegedly bought by the mother of one of Bailey’s friends. A handwritten receipt, submitted as evidence, stated that the property was purchased for 423 million Iraqi dinars, approximately AU$465,300. The CCC claims this amount was paid to Bailey’s mother in Iraq in April 2024.
The Controversial Confiscation Laws
Bailey’s case is currently being heard in the Beenleigh Magistrates Court. Born in Iraq under the name Mohammad Al Waeli, he later changed his name legally. In past bail applications, he claimed to have served as an intelligence officer in the Iraqi military between 2007 and 2010, working alongside Australian and US forces. He also presented photographs as evidence of his service. However, he said his involvement with foreign forces made him a target, resulting in the deaths of his father and brother, ultimately forcing him to flee to Australia on a protection visa.
Queensland’s asset confiscation laws have been the subject of considerable debate, having been used against a range of individuals, from motorcycle gang members to a greyhound trainer involved in live baiting.
Even the CCC itself has previously called for reforms, raising concerns that the laws do not always target the true masterminds of criminal enterprises. Past cases have highlighted flaws in the system, such as convicted drug traffickers recovering their seized Harley-Davidsons and a major drug kingpin only having to forfeit $74,000 in unexplained wealth.
Legal experts have questioned whether these laws genuinely disrupt organised crime or merely impose financial hardship on lower-level offenders. Critics have also raised concerns about the fairness of restricting defendants from using their frozen assets to fund their legal defence.
Bailey’s case may well test the limits of these laws and reignite debate over their effectiveness in tackling crime at its highest levels.
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