Kazem Hamad, an individual identified by Australian and Iraqi authorities as an alleged leader of a significant transnational criminal enterprise, has been arrested in Iraq. His detention, which followed an official request from Australian law enforcement, has been linked to a subsequent escalation of violence and restructuring within Australia's multi-billion dollar illicit tobacco market. Hamad faces allegations of international drug trafficking, involvement in widespread organized crime violence, and controlling a significant portion of Australia's illegal tobacco trade.
Arrest and Official Confirmation
Kazem Hamad, also identified by Iraqi authorities as Kadhim Malik Hamad Rabah al-Hajami, was arrested in Iraq in mid-January. His detention was announced by Iraq’s National Center for International Judicial Cooperation (NCIJC), which stated the arrest was made in response to an official request from Australian law enforcement. The NCIJC, in coordination with the General Directorate of Narcotics and Psychotropic Substances Affairs, initiated proceedings through the First Karkh Investigation Court, which specializes in drug cases.
Iraqi authorities described Hamad, 41, as "one of the most dangerous wanted men in the world."
The Australian Federal Police (AFP) had shared information with Iraqi authorities in October prior to the arrest. The AFP later released two images reportedly showing Hamad in Iraqi custody, depicting him in a T-shirt and yellow prison attire, with one image showing him holding a sign in Arabic indicating prosecution for narcotic offenses. Concerns regarding the images' authenticity due to anomalies were raised, though the AFP stated it had not altered them and was unaware of any alterations, having received them from Iraqi authorities.
Background and Allegations
Hamad arrived in Australia from Iraq in the late 1990s and subsequently became involved in criminal activities. He was deported from Australia in July 2023 after completing an eight-year prison sentence for heroin trafficking. He had resided in the Middle East for approximately three years prior to his arrest.
Allegations against Hamad include:
- Importing large quantities of drugs, including heroin, into Iraq and Australia.
- Involvement with prominent organized crime gangs in Australia, particularly in Sydney, which are implicated in shootings, murders, kidnappings, violent assaults, extortion, and drug imports.
- Association with outlaw gangs in Australia and the Middle East, linked to murders, shootings, money laundering, fraud, assaults, arson, and global drug trafficking.
- Orchestrating firebombing attacks against rivals or Melbourne shop owners who resisted alleged extortion, with fees reportedly known as the "Kaz tax."
- Being a person of interest in firebombings at Victorian tobacco establishments and the Adass Israel synagogue in Melbourne in December 2024, which the AFP has attributed to Iran's Revolutionary Guard Corp.
AFP Commissioner Krissy Barrett previously designated Hamad a national security threat. Home Affairs Minister Tony Burke commented that investigations into organized crime in Australia had consistently linked back to one individual.
The Illicit Tobacco Market
Australia's illicit tobacco black market is estimated to be worth up to $8.5 billion annually, including illicit vapes since 2024. The market's growth has been linked to a series of annual 12.5 percent tobacco tax increases implemented since 2013, which have significantly raised legal cigarette prices. This has created a price discrepancy that makes illicit tobacco substantially cheaper. Government inquiries and experts have identified high taxes as a key factor in the market's expansion since 2015. The Australian Criminal Intelligence Commission (ACIC) identifies tobacco as the second most valuable illegal commodity after drugs in the country.
Police suspect that following his deportation in mid-2023, Hamad and his syndicate, known as the 313s, Kaz’s Boys, or the Iraqis, gained control of significant portions of the illicit tobacco market and influenced Melbourne's gangland activities.
Rohan Pike, a former AFP officer and illicit tobacco expert, alleged Hamad controlled various aspects of Australia's illicit tobacco market, potentially up to 90 percent in some western states.
This alleged control extended from overseas production (including alleged stakes in tobacco factories) to transportation, border smuggling, distribution, and retail outlets. Hamad's alleged market dominance was reportedly achieved through a two-year campaign of violence, including firebombings and shootings, which led to the surrender of rival groups such as the Haddara crime family.
He reportedly acquired a financial stake in Manchester, a tobacco company operating primarily from the Jebel Ali Free Zone in the United Arab Emirates. This arrangement has been characterized as a "fully vertically integrated criminal enterprise," enabling control over manufacturing, export, import smuggling, wholesale distribution, and street-level retail in Australia. Manchester cigarettes are reportedly produced without health warnings, rendering them unsuitable for legal sale in most major markets and facilitating their use in illicit trade. In a recent year, over 2.5 billion illicit cigarettes were intercepted at the border.
Syndicate Operations and Recent Violence
The Hamad syndicate reportedly operates across five Australian states and one territory. Police intelligence reports link the syndicate to numerous serious offenses, including arsons, extortions, and shootings related to the illicit tobacco trade, as well as its importation and distribution.
Since Hamad's arrest in January, there has been a reported increase in violence within the illicit tobacco market, with over a dozen arson attacks and two shootings linked to illegal tobacco markets across Victoria, New South Wales, Queensland, and Western Australia. These incidents include:
- An arson at a Glenroy tobacconist on March 4.
- An attempted firebombing and subsequent shooting in Glenroy on a Tuesday evening, followed by the seizure of five firearms, including an AK-47, and the arrest of a 30-year-old man.
- A series of seven targeted home invasions, arsons, attempted arsons, and firearm incidents in Melbourne since early January, reportedly linked to a dispute originating in Bali involving an alleged Hamad syndicate associate who demanded an extortion fee.
- The reported vandalization of gangland figure Sam Abdulrahim's grave, which was interpreted by some as a message that the 313s maintain control.
Law enforcement and underworld sources indicate that various Middle Eastern organized crime groups are attempting to challenge the dominance of the cartel previously controlled by Hamad, known as "The Commission." Some tobacco shops have reportedly stopped paying the "Kaz tax," leading to retaliatory fires. The current level of violence in the illicit tobacco market has not been observed in recent years.
Law Enforcement Response and Future
The AFP's investigation into Hamad's activities is ongoing, led by a special task force known as Operation Carmen. This task force commenced after Victoria Police's Taskforce Lunar, which was established in October 2023 to investigate violence linked to Hamad's rise, including firebombings, two murders, and an attempted grave desecration. Taskforce Lunar merged into the state’s Gang Crime Squad in late October of the preceding year. Victoria Police's Gang Crime Squad has announced renewed expectations of violence in the illicit tobacco market.
AFP Commissioner Barrett stated that Hamad's arrest has led to signs of fracturing within his syndicate, including a lack of leadership, infighting, and dysfunction, which is creating "new opportunities for investigators."
The AFP is committed to dismantling the syndicate and identifying all individuals linked to the crime group, collaborating with state and territory law enforcement agencies. Victoria Police has made over 200 arrests related to tobacco violence since its onset, including Hamad's younger brother, Maytham Hamad, who faces charges related to dealing with proceeds of crime and possessing prohibited tobacco products.
The possibility of Hamad facing charges in Australia is complex due to the absence of an extradition treaty with Iraq. While Home Affairs Minister Burke stated he did not desire Hamad's return to Australia but wished for him to remain incarcerated, human rights lawyer Greg Barns noted that Hamad's legal fate is currently under the jurisdiction of Iraqi courts. He also commented that while Australia has direct extradition agreements with some nations, cooperation with countries like Iraq, based on inherited treaties, can vary, and resisting extradition requests for serious allegations can be challenging. Hamad was previously regarded as difficult to apprehend in Iraq, reportedly operating from a fortified compound and maintaining suspected deep and influential ties to Iraqi security services.