A Sydney woman allegedly laundered millions of dollars of illegal tobacco funds through fraudulent mortgages linked to an international crime ring. The arrest of 36-year-old Xiaoli Xue on Thursday led police to the alleged discovery of $2.5 million worth of cigarettes, $28,000 worth of loose-leaf tobacco, more than $100,000 in cash, a luxury Mercedes GLC300, an illegal gambling den and an unlicensed tattoo parlour. In June 2024, financial crime detectives from NSW Police’s state crime command formed Strike Force Karawina to investigate the alleged laundering of illegal tobacco funds through property by an organised crime syndicate hailing from South-East Asia. The investigation allegedly discovered Xue laundered nearly $7 million through seven fraudulent mortgages since 2020. She was allegedly granted 10 loans at various banks through fraudulent documents that inflated her income.