Brothers Accused of $337 Million Booze Fraud Scheme That Involved Disguising Alcohol as Beer
Two brothers have been accused of being involved in an elaborate multimillion-dollar scheme in which thousands of crates of booze were allegedly disguised as beer. (Photo: Pexels)
In a major case of alleged booze fraud, two brothers, Ramy Saad and Joseph Saad, find themselves in the Melbourne Magistrates’ Court facing charges of reportedly evading a staggering $337 million in import duties through a sophisticated alcohol trading operation.
This situation has emerged following a comprehensive three-year collaborative investigation involving the Australian Border Force (ABF), Australian Federal Police (AFP), and the Australian Tax Office, known as Operation Cabestro, The Age reported on Monday.
The allegations against the Saad siblings revolve around their purported evasion of duty payments on alcohol imported into Australia. They are accused of falsely categorizing substantial quantities of imported alcohol as beer, which has lower duty taxes, despite the presence of spirits within the shipments. These spirits were allegedly sold within the domestic market.
“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,” documents claim, per The Age.
The imported alcohol reportedly originated from a warehouse in Malaysia, owned by a Portuguese entrepreneur based in Singapore. Following importation, the beverages were exported to various countries, including China, New Zealand, Singapore, Malaysia and Dubai, police said.
Warehouses located in Melbourne were allegedly utilized for storing both beer and spirits. The spirits were then purportedly distributed to domestic wholesalers, who, in turn, supplied local retailers.
In December 2019, authorities examined 24 containers of alcohol meant for export by a company co-owned by the Saad brothers, VP Brands. Despite being declared as spirits, the containers were found to only contain Heineken beer. According to AFP Officer Mark Creighton, this discrepancy is said to have resulted in a substantial duty shortfall, exceeding $23 million.
The legal proceedings are ongoing, with the brothers scheduled to reappear in court in February 2024. ABF acting superintendent Steve Orme has emphasized that these charges underscore the authorities’ commitment to tackling serious fraud, serving as a stern warning to individuals considering engaging in criminal activities.
“You will be caught, and you will be held to account,” Orme said, per the report.
Read next:
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Four Roses Bourbon Allegedly Victimized by Tax Fraud Scheme
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