Melbourne tobacco turf wars: a reformed criminal's plea

Table of Contents

• Exclusive interview with a former figure in Melbourne’s tobacco underworld
• From organised crime to court and cafés
• Attacks, intimidation and the struggle to leave the past behind
• Why the tobacco black market matters
• Where to from here?
• Conclusion
• FAQs

Exclusive interview with a former figure in Melbourne’s tobacco underworld

Melbourne tobacco turf wars have followed one man from prison cell to café counter. Hassan Barakat, once described as a puppet master in the city’s organised crime scene, tells 7NEWS he has turned his life around and is now running legitimate businesses after serving time for his role in a multimillion-dollar tobacco scam.

From organised crime to court and cafés

Hassan and his brother Dib were jailed in 2019 after an investigation found they swapped imported cigarettes with counterfeit products in a scheme that cost the government about $4 million in unpaid tobacco taxes. Barakat admits the crime, saying plainly: “We did the crime and we paid the time.”

Since his release, the brothers say they have invested in legitimate enterprises, opening two cafés and pledging to pay taxes and contribute positively to their community. “We focus on making legit business, pay our taxes, and face the community with something better than before,” Barakat told 7NEWS.

Attacks, intimidation and the struggle to leave the past behind

Despite Barakat’s insistence he has left the tobacco trade, his family businesses have faced violent backlash. The family’s fruit and vegetable store was targeted, and one of his cafés in Altona North was firebombed on two separate occasions, leaving staff and neighbours shaken.

Barakat expressed frustration at ongoing threats and intimidation, and at one point issued a blunt challenge to whoever remains aggrieved: “If you have a problem with me or my brother, you can send us your location, we will come to you and trust me we'll pay you a visit. And we can discuss this further.”

Why the tobacco black market matters

The tobacco turf wars are fuelled by the high margins that come from tax evasion. Barakat acknowledged that the profits were a major motivator: “It's a lucrative business because we want a tax evasion, and that's why I got locked up. There is money to be made, otherwise people wouldn't find it everywhere.”

That $4 million figure and the organised swapping of genuine imports for fakes illustrate why authorities have prioritised cracking down on the black market. The violence surrounding the trade also harms local communities and small business owners trying to operate lawfully.

Where to from here?

Barakat insists he and his family are done with the tobacco wars and committed to legitimate business: “We are legit businessman, Mimabara, and we're going to stay that way.” He says he wants to rebuild trust with the community and protect his family’s livelihood from further attacks.

Whether his past will continue to cast a shadow remains uncertain. The recent firebombings and threats show how difficult it can be to completely walk away from a violent and profitable illicit trade.

Conclusion

Hassan Barakat’s story highlights the complex path from criminal enterprise to attempted rehabilitation. He accepts responsibility for past crimes and has made a public commitment to legitimate business, but the ongoing intimidation and violence underline the broader social costs of the tobacco black market in Melbourne.

For the full interview and coverage, watch the original report by 7NEWS Australia embedded above.

FAQs

• Who is Hassan Barakat? A former figure in Melbourne’s organised tobacco trade who, alongside his brother Dib, was jailed in 2019 for a scheme that avoided about $4 million in tobacco taxes.
• What crimes was he convicted of? He and his brother were convicted for swapping imported cigarettes with counterfeit products as part of a large tax-evasion operation.
• Are his businesses still being targeted? Yes. The family’s fruit and vegetable store has been targeted and one of his cafés in Altona North was reportedly firebombed twice.
• Does he admit his past? Yes. Barakat said, “We did the crime and we paid the time,” and has publicly declared he is focused on legitimate business now.
• Where can I watch the original interview? The interview was produced by 7NEWS Australia; a clip is embedded above and the full report is available through 7NEWS channels.

The information in this article has been adapted from mainstream news sources and video reports published on official channels. Watch the full video here Escaping Melbourne’s tobacco turf wars, a reformed criminal's plea | 7NEWS