In this insightful interview, Hayley van Loon, CEO of Crime Stoppers International, details the alarming convergence of organised crime and state actors across global illicit trades, particularly focusing on the illicit tobacco industry. She highlights how this $4.2 trillion “Illegal Empire” is no longer just a public health or taxation issue, but a major national security concern with devastating human consequences for vulnerable people.
Peter Beckett: Hayley, welcome to Clearing the Air. It’s lovely to meet you. Please could tell me who you are and why you’re interested in this sector.
Hayley van Loon: I’m Hayley Van Loon, the CEO of Crime Stoppers International. We’re increasingly seeing convergence of crime across all the different crime verticals, whether that be human trafficking, wildlife trafficking, narcotics, and illicit trades such as illicit tobacco. That’s my interest in this area.
Peter Beckett: As someone who works in the nicotine industry, my vision of Australia is a landscape of gangs selling illicit vapes, because that’s the impression I get from our Australian readers and the coverage we have. Can you walk me through the details of how the illicit vape industry works?
Hayley van Loon: It’s important to delineate that I’m from Crime Stoppers International. We work across the globe, not specifically in Australia. There is a Crime Stoppers Australia that is independent to us, and they are the ones dealing with the tips regarding Australian issues. However, I can comment on the issues happening because I live in Melbourne, where there has been coverage of firebombings and Hamad directing via the IRGC, the proscription of the IRGC, and then the expulsion of the Iranian ambassador last year. We’re seeing a phenomenon where state actors are using organized crime gangs to carry out activities, including the illicit tobacco trade and attacks on Jewish sites such as synagogues and restaurants in Melbourne. The biggest concern we have is this convergence where things are no longer just organized crime and state actors; we’re seeing a complete convergence of the two using the same networks and financing to carry out acts on behalf of the IRGC.
Peter Beckett: To understand that correctly, what was the IRGC’s role in illicit tobacco in Melbourne?
Hayley van Loon: They were essentially directing Hamad and his illicit tobacco network in Melbourne. Hamad is now in Iraq; he was extradited, but he was still directing activities from prison there. Essentially, that network’s financial links went back to the IRGC. They were directing firebombings—over 230 of them—as well as the bombing of a synagogue in Melbourne and an Israeli restaurant. Our own Prime Minister recognized the linkages between the IRGC and this particular tobacco organized crime gang, as did the head of our Federal Police and the head of our domestic intelligence service. It’s a significant case study demonstrating the true linkages between nation-state actors and organized crime in the illicit tobacco space because it is low-risk, high-reward. Some countries have taken steps to flip that narrative by proscribing the IRGC, which allows investigators to use terrorist financing laws for better prosecution outcomes.
Peter Beckett: So the IRGC running the illicit tobacco industry in Australia is presumably just the tip of the iceberg. What are we seeing in Europe regarding state actor linkages?
Hayley van Loon: Are you familiar with the Fox Trot network?
Peter Beckett: I’m about to be right.
Hayley van Loon: In Sweden, there was a similar situation where an individual, Majid, was the head of a network utilizing outlaw motorcycle gangs and serious organized crime gangs. Existing networks that run narcotics, illicit tobacco, human trafficking, or wildlife trafficking already have infrastructure: financial systems, transport, and safe houses. When a nation-state actor looks to achieve certain outcomes, they lean into these pre-existing networks. Organized crime gangs will sell to the highest bidder; for them, it is simply about money. But for state actors like the IRGC, there are ideological reasons as well as fiscal ones. This convergence is popping up everywhere. We’ve seen historically that Hezbollah, linked to the IRGC, has operated within organized crime networks for close to a decade. People are paying more attention now because the conflict in the Middle East has increased interest, and cases like the Hamad network and the Foxtrot network have shown tangible evidence of direct linkages. It is no longer just a taxation or public health issue; it is a national security issue.
Peter Beckett: We’ve talked about networks in Iran and the Middle East. I’ve spoken to a journalist working on illicit white factories in Belarus; I’m interested in that from a European perspective.
Hayley van Loon: That isn’t my area of expertise, but I can comment on the fact that about 60% of the factory workers in places like Spain making illicit tobacco are individuals caught up in illegal migration. They are being used by organized crime gangs to grow and build the product. They are victims. It’s important that when raids happen, these individuals are treated as victims rather than criminals. They are sold a story; people don’t leave their countries on small boats for no reason. They either have difficult financial issues or are caught in a war. It’s vital that we never forget the human aspect of these issues. It is not just about taxation or government revenue; it is a national security issue and a very human issue involving vulnerable people.
Peter Beckett: Walk me through what a typical illicit supply chain looks like. You mentioned Spain, for example.
Hayley van Loon: I’ll take you through one we call the “Illegal Empire” at Crime Stoppers International. It is a $4.2 trillion industry linked to illicit tobacco and counterfeit goods of all kinds, including prescription drugs and clothing. For example, the Charlie Hebdo attacks were linked to counterfeit Nike sneakers; the profits from those sales helped terrorists buy weapons. There is a whole ecosystem where buying a counterfeit handbag is linked to victims, like a young girl chained to a sewing machine. The profit goes to gun runners, tobacco smugglers, or human traffickers. It is a toxic ecosystem for vulnerable people, particularly women and children, and it’s important to think about the people impacted across that whole system.
Hayley van Loon: So there’s something at Crime Stoppers International we call the Illegal Empire. And it is a $4.2 trillion industry that is linked to not only illicit tobacco, but counterfeit goods of all kinds, whether that be you know, prescription drugs, whether that be handbags, clothes, you know, if you think of the Charlie Hebdo attacks that was linked to counterfeit Nike sneakers that were sold, that’s how they bought their weapons. So people that purchased those counterfeit Nike sneakers actually helped the terrorists by their weapons, right? And so there’s this whole ecosystem. So say you buy counterfeit handbag linked to that is a whole lot of victims, right? You’ve got the people that are the young girl that’s chained to a sewing machine for 16 hours a day, making that. And the profit from that goes to a gun runner, which then goes to a tobacco smuggler, which then goes to a human trafficker who’s trafficking girls as young as nine for sex slaves. Right. Who are all victims caught up in this ecosystem? So it is a very, very toxic, horrible kind of ecosystem for vulnerable people, women, children. There are obviously men caught up in it too. I’m not saying they’re not. But disproportionately women and children are affected by this more so. And, you know, I think it’s really important when we like I said, when we talk about this, that we think about all those different impacts across the whole ecosystem and the people that are impacted by it.
Peter Beckett: I want to push you on the specific nicotine supply chain. Perhaps we can merge those narratives. Could you pick a victim of that particular chain and describe their experience?
Hayley van Loon: Suppose someone like Abdul has come from Africa after being promised a better life. He pays for his passage through various networks and arrives in Europe, only to find the promise wasn’t real. Suddenly, he’s shipped to Spain to work on a tobacco farm. He’s in debt bondage and has to work until he can pay back the expenses of his trip. If there’s a raid, he might be arrested as a criminal for working on that illicit farm.
Peter Beckett: And he has no way of proving what happened previously.
Hayley van Loon: Right. And he’s also not well liked by the community because he’s targeted as an illegal immigrant who’s responsible for bad things. Right? So how do you get people like that and change their trajectory, warn them before they come. Prevent them from coming? I’m not sure what the answer is.
Peter Beckett: Before we get to that, Abdul has grown this tobacco on a Spanish farm. Who else is involved in the network, like the factory owners?
Hayley van Loon: The factories are run by organized crime gangs, including outlaw motorcycle gangs. Within those factories, more vulnerable people—mostly illegal migrants—are working.
Peter Beckett: Once the product is made and packaged, how is it distributed?
Hayley van Loon: It’s distributed through organized crime networks similar to those used for narcotics, although it is often a bit easier.
Peter Beckett: So we’re in Brussels, which, as I’m sure you are aware, is where all the cocaine comes from, on this continent right now. It’s a huge issue here. We’ve had ministers to describe the place as a I think the the phrase he used was a narco state.
Hayley van Loon: Right.
Peter Beckett: At one point. And there must therefore be a link between the organized crime that’s happening around cocaine at the port of Antwerp. And the illicit cigarette market.
Peter Beckett: How do those two organizations link into each other?
Hayley van Loon: They are often the same organization, using the same transport, financial flows, and people to move everything. They are all intertwined.
Peter Beckett: Okay. Now what is going to happen. This problem likely won’t disappear because of the profit motive, so we must manage it.
Hayley van Loon: Harm reduction is the most important thing.
Peter Beckett: How do we reduce the harm from the illicit trade?
Hayley van Loon: Yeah. Look, I think if I had the actual answer to that, I could probably, you know, do a lot.
Hayley van Loon: I believe public-private partnership is key. Organized crime gangs work well together and adopt technology quickly. Law enforcement agencies cannot fight this alone; they are under-resourced. The private sector has the capability, funding, and expertise, while non-profits like ours provide anonymous community reporting. We need to work together and not be afraid to try novel ways.
Peter Beckett: What is the commercial incentive for these private actors in such a partnership?
Hayley van Loon: Social good. In many of these businesses, you’ll find people who are mission-driven.
Peter Beckett: What kind of businesses are we talking about here?
Hayley van Loon: It could be any sector, from cybersecurity to pharmaceuticals. People often have personal motivations, such as knowing a victim of a scam. While there needs to be a return on investment for companies, the social good of combating systemic crime is a major motivator. If it reduces crime, we should pursue it regardless of whether it also helps a company’s bottom line.
Peter Beckett: What is your motivation? How did you end up in the security sector?
Hayley van Loon: I started in the Australian intelligence community working in counter-terrorism, then spent eight years in the private intelligence consulting sector in the US, protecting C-suites and handling physical penetration testing. For me, it comes back to a mission focus on protecting people and harm reduction. Crime Stoppers International is a natural transition in the global fight against crime.
Peter Beckett: Being a woman in a largely male-dominated security sector, what can we learn from your experience of becoming successful?
Hayley van Loon: It has been a mixture of luck and seizing opportunities when they present themselves. I’ve had excellent mentors and sponsors who recognized my capability and put me forward. Now that I’m in a position to do so, I ensure that I offer visibility and opportunities to my colleagues as well.
Peter Beckett: Hayley, thank you so much for joining me.
Hayley van Loon: Thank you.
