POLICE SEIZE ASSETS IN DRUG BLITZ

Police say they have smashed two highly organised heroin networks in a blitz
they believe will immediately limit the supply of heroin on Melbourne streets.

Described as the biggest operation of its kind in the state, police raided
12 homes in Melbourne and Geelong early yesterday morning, arresting 12
Vietnamese nationals. Another house was raided later in the day.

The 10 men and two women are believed to be the key players in networks
responsible for distributing heroin worth $150 million in the past three years.

The interim shortage of heroin would hit Footscray, St Kilda and Geelong
within days, police said.

Property and assets worth hundreds of thousands of dollars were confiscated
in accordance with new laws that enable police to seize goods bought with
the proceeds of crime.

Large amounts of heroin, cash, at least two houses, more than a dozen luxury
cars and motorcycles and electrical goods, including fridges, were seized.

The blitz was the culmination of a 10-month operation involving the drug
squad and the Asian squad.

During the early morning raids, police forced their way into four of the
homes, some of which were occupied by children.

Superintendent David Newton, of the crime squad, said it was unfortunate
families were living at some of the houses.

"It is sad that these people lived in a family environment and there were
women and children at the houses ... there would have been a few women and
children who would have been quite distressed," Superintendent Newton said.

He said police believed the highly organised groups had been operating in
Melbourne for more than three years and were responsible for obtaining and
distributing between one and two kilograms of high-grade heroin every fortnight.

The group would buy the heroin wholesale in Sydney for about $200,000 per
kilogram and traffic it in Melbourne at the street value of $1 million per
kilogram.

"This is the most significant dismantling of a high-level heroin
distribution network in Victoria's history ... we identified two separate
networks working in conjunction with each other," he said.

Superintendent Newton said the operation had targeted the ringleaders of the
group and some others involved in the networks were yet to be arrested.

"The networks were so extensive we have had to concentrate on persons that
have been trafficking the highest volumes but there are others trafficking
lesser amounts who may be gathered up in the next couple of months," he said.

"I would imagine that there would be a bit of activity around Tullamarine
airport in the next few weeks as a number of those people will attempt to
leave the country."

Police believe the ringleaders have led a lavish lifestyle on the proceeds
of their drug trade, with neighbors reporting expensive electrical equipment
being delivered and luxury cars parked at the houses.

It is believed the heroin was imported into Sydney, from where it was
collected for distribution in Melbourne.

The police have consulted other law enforcement agencies, the Australian
Federal Police and Customs, about the group's operations.

Superintendent Newton said the seizing of assets associated with drug
trafficking would send a clear message to others in the heroin industry that
it was "a new game".

He said it became apparent early in the investigation that significant
assets were being purchased with the proceeds of the trafficking and police
were able to seize them under new provisions of the Asset Confiscation Act.

"This is the start of it and it is not going to stop ... the chief
commissioners of all states ... want us to target these things. The
legislation has been introduced for us to get to the assets and we intend to
use it," he said.