Australian Cartel & Chinese Gang Control Illegal Vape Market

Australia’s illicit tobacco cartel, allegedly run by a deported underworld kingpin, has reportedly joined forces with a mysterious Chinese crime gang to infiltrate and control the local illegal vape market. The syndicate’s brand of choice, “Alibarbar,” is being aggressively pushed into hundreds of shops across Australia in a market takeover driven by threats and extortion, revealing a new and dangerous front in the battle against organized crime and illicit nicotine products.

The scale of this operation became apparent in mid-July when the Australian Border Force (ABF), acting on a tip-off, intercepted a shipment of vapes hidden inside a container marked as “furniture” on the vessel Cosco Singapore, which had docked in Sydney from Shenzhen, China. Further intelligence led to the examination of three more containers from the same ship. Inside, investigators discovered over 115,200 vapes, almost entirely the Alibarbar brand, with an estimated street value of up to $4.5 million. While not the largest single seizure since Australia’s vape import ban was introduced in early 2024, its homogeneity was notable, pointing to a coordinated and large-scale distribution effort.

The Underworld Alliance: Kazem Hamad and “Chinese Simon”

Law enforcement and underworld sources, who cannot be identified publicly, claim the syndicate driving this market takeover is run by Kazem “Kaz” Hamad, a Melbourne-based organized crime figure. Hamad, 41, was deported to his native Iraq in mid-2023 after serving a lengthy prison sentence for drug trafficking. From overseas, he has allegedly waged a violent street war for control of Australia’s multi-billion-dollar illicit tobacco market, a conflict marked by dozens of firebombings and shootings.

An underworld source explained the syndicate’s expansion into vaping: “It was all about the cigarettes at the start. But the gangs realised they were losing money by not running the vapes too. They chose Alibarbar. They’ve got control of the stores, who don’t get a choice about whether to refuse.”

The syndicate’s domination of the illicit tobacco trade has reportedly made it relatively easy to force Alibarbar vapes onto retailers. This move into the vape market was allegedly part of a truce struck in early 2025 by Hamad and his rivals to end the so-called “tobacco war” and form a new nationwide cartel. Hamad has since been declared a “national security threat” by Australian Federal Police Commissioner Krissy Barrett due to his involvement in the illicit tobacco industry and other serious crimes.

Three sources in federal law enforcement, the underworld, and the tobacco industry stated that this deal also linked the Hamad syndicate with a China-based crime group run by a mysterious figure known as “Chinese Simon.” This group, previously designated by law enforcement as an Australian Priority Organisation Target (a serious national organized crime threat), is believed to exert end-to-end control over smuggling operations from China to distribution and retailing in Australia. Confidential sources suggest this syndicate has links to a major Australian logistics company that was the listed consignee on the seized Alibarbar shipment.

Market Domination Through Intimidation

The Alibarbar brand has swamped the Australian illicit market with remarkable speed. Industry market intelligence provided to The Age shows the brand began appearing in illicit tobacco shops in May 2024. By August 2025, it was reportedly being stocked in over 90% of these shops. A Victoria Police source confirmed that the Hamad cartel is deploying the same tactics of intimidation it used to gain a stranglehold over the tobacco market in its move into vapes.

Under this racket, shop owners are allegedly forced to sell particular brands, including Alibarbar vapes (which retail for $35 to $50 per unit), at prices set by the cartel. They must also pay a monthly “$5,000 tax” to operate in a given territory. Those who defy the rules face ruthless threats of violence, including firebombings. While there is no known firebombing yet linked directly to the vape standover, the underlying threat from the tobacco war is potent.

The money involved is massive. Since the import ban was introduced, the ABF and Therapeutic Goods Administration (TGA) have seized over $600 million worth of illegal vapes, representing what is believed to be only a fraction of the total supply. The Hamad syndicate is thought to directly control over 500 retail shops, with hundreds more paying the “Kaz tax” to operate.

Despite the brand’s prevalence in seizures and on the streets, both the ABF and TGA stated that they do not track the identities of illicit brands seized and could not provide a breakdown of their market share, suggesting the gangland-backed push of Alibarbar may have caught authorities off guard.

The Corporate Veil of Alibarbar

The manufacturer of Alibarbar and its awareness of the illicit distribution of its products in Australia remain unclear. Chinese incorporation records show the company behind the brand, Shenzhen Dali Wanwei Technology Co Ltd, was founded in late 2023. The company did not respond to a request for comment. The Alibarbar brand has expanded beyond vapes to include nicotine pouches and other smoking replacement aids.

Adding another layer of complexity, government agency IP Australia granted a trademark over the Alibarbar name and logo to the Chinese company in July 2024, despite its products being illegal to sell in Australia. The relationship, if any, between the parent company and a string of Australian-based online distributors using the Alibarbar brand name is also murky. One website, purporting to be Australia’s “official Alibarbar vape supplier,” is registered to a block of townhouses in Cabramatta, NSW. Another online distributor uses an official-looking logo but contains information about local staff who do not appear to exist, according to the Australian Securities and Investment Commission. Neither of these purported Australian businesses responded to requests for comment.

This investigation reveals a deeply entrenched and violent criminal enterprise that has successfully pivoted from illicit tobacco to dominate Australia’s black market for vapes, leveraging international crime networks, intimidation, and a specific, recognizable brand to control a lucrative and illegal trade.

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Matthew Ma

Marketing at Ecigator

With over a decade of experience in the e-cigarette industry, Matthew Ma is a seasoned expert in both the manufacturing and usage aspects of vaping products. His extensive background has provided him with a deep understanding of the intricacies and evolving dynamics of e-cigarettes.