Waikato retailers among those busted for illegal ciggie sales

Wednesday, 1 July 2026

The six-month long operation saw more than a million illegal cigarettes seized.

More than 1.3 million illegal cigarettes - and $170,000 cash - has been seized after search warrants across Waikato, Rotorua and Auckland.

Five people were arrested in the bust, which is the first joint operation of the multi-agency Illicit Tobacco Action Group, formed in May this year.

Operation Clarify ran for six months, led by Customs and supported by Police and Health New Zealand, and ended with 21 search warrants on properties believed to be linked to an illicit tobacco network.

They were spread across Rotorua, Waikato and Auckland. Eight were retail outlets and six were homes.

Along with illegal tobacco products, investigations found evidence that indicated there were plans to expand distribution by recruiting more retailers.

Some of the illegal tobacco products seized in Operation Clarify, which investigated reports of an illicit tobacco network.

There were also seven storage locations where illicit tobacco products had been stockpiled.

It’s estimated 1.378 million cigarettes have been seized, representing more than $2 million in evaded tobacco excise.

The five people arrested face charges of possession or custody of uncustomed goods, and sale and distribution of uncustomed goods.

“Operation Clarify demonstrates the kind of coordinated determination and agility the Illicit Tobacco Action Group will bring to bear on these criminal players,” Customs assistant comptroller intelligence and investigations, Terry Brown, said.

Five people have been arrested so far in connection to the illegal cigarettes.

Those behind the illicit ring were trying to recruit more retailers, a statement said.

This operation, built from a CrimeStoppers anonymous tip-off late 2025, was brought to its conclusion through the joint efforts of Customs, Police, Health NZ and the Ministry of Health.

“Health NZ provided valuable intelligence through work they’d been doing at the beginning of this year, which confirmed to Customs that an illicit tobacco network was operating in the Rotorua, Waikato and Auckland areas,” Brown said.

“Operational support from Police has enabled us to act on multiple search warrants yesterday and earlier today involving raids on nearly two dozen locations, as well as assisting with related arrests.”

Illicit tobacco products had been stockpiled at seven storage locations.

Police Superintendent Sunny Patel acknowledged the coordination, saying the Illicit Tobacco Action Group is building on existing partnerships to suppress the growth of an illicit tobacco market in New Zealand.

“All agencies involved in the Illicit Tobacco Action Group have a part to play in disrupting criminal activity associated with illicit tobacco, taking enforcement action against those involved in these activities and preventing harm.

“We know that illicit tobacco networks, such as those identified in Operation Clarify, are in it to profit off their illegal activity and create harm across communities.”

Police also play an important role in sharing intelligence, helping with executing search warrants and seizures of illicit tobacco products, such as the activities undertaken in Operation Clarify, including the restraint and forfeiture of assets under the Criminal Proceeds (Recovery) Act.

New Zealand’s Director of Public Health, Dr Corina Grey, said illicit tobacco makes cheap, illegal cigarettes more available and reducing incentives for people to quit, undermining efforts to reduce smoking rates.

“Our priority is protecting New Zealanders’ health. Illicit tobacco undermines that, which is why agencies are working together to respond in a more coordinated way.”

The Illicit Tobacco Action Group is also supported by other agencies, including Inland Revenue and Immigration New Zealand.

Suspicions about such activity, including illicit tobacco, can be reported by calling 0800 WE PROTECT (0800 937 768) in confidence, or Crimestoppers anonymously on 0800 555 111.