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Police investigate wool-swap scam after brokers fleeced by 'idiots' Police investigate wool-swap scam after brokers fleeced by 'idiots'
(about 1 month later)
High-value wool exported to China being replaced by inferior product worth a 12th of the price, police say
Calla Wahlquist
Wed 4 Oct 2017 03.18 BST
Last modified on Wed 4 Oct 2017 03.19 BST
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Police in Victoria are investigating a wool-swap scam that involves high-value wool exported to China being replaced by inferior product worth a 12th of the price.Police in Victoria are investigating a wool-swap scam that involves high-value wool exported to China being replaced by inferior product worth a 12th of the price.
Wool growers have labelled the perpetrators “idiots”, saying the swap would be instantly obvious to anyone who opened the bales.Wool growers have labelled the perpetrators “idiots”, saying the swap would be instantly obvious to anyone who opened the bales.
The swindle is believed to date back to May 2017 and has affected a number of brokers across Melbourne, who police say have had high-value wool removed from their original bales and replaced with poor-quality wool.The swindle is believed to date back to May 2017 and has affected a number of brokers across Melbourne, who police say have had high-value wool removed from their original bales and replaced with poor-quality wool.
At least 18 tampered bales, which weigh on average 180kg each, have been seized from mills in China.At least 18 tampered bales, which weigh on average 180kg each, have been seized from mills in China.
“We’re talking wool worth $10-$12/kg being replaced with stuff worth 20c-50c/kg,” detective inspector Jamie Templeton told the Weekly Times.“We’re talking wool worth $10-$12/kg being replaced with stuff worth 20c-50c/kg,” detective inspector Jamie Templeton told the Weekly Times.
The difference in value between 18 bales of good-quality wool of 19-21 microns and that of inferior product, which Templeton said included “sweepings, basically”, is more than $30,000.The difference in value between 18 bales of good-quality wool of 19-21 microns and that of inferior product, which Templeton said included “sweepings, basically”, is more than $30,000.
“These thefts are incredibly damaging to the livelihood and reputations of the brokers who export this product,” Templeton said on Wednesday. “We believe there may be more people who have been a victim of these thefts and we encourage them to come forward and report it to police.”“These thefts are incredibly damaging to the livelihood and reputations of the brokers who export this product,” Templeton said on Wednesday. “We believe there may be more people who have been a victim of these thefts and we encourage them to come forward and report it to police.”
Robert Ingram, from the Australian Wool Growers Association, said it was “not a simple exercise” to swap wool out of a stamped and marked bale and would involve the full suite of wool-baling equipment, which brokers usually have.Robert Ingram, from the Australian Wool Growers Association, said it was “not a simple exercise” to swap wool out of a stamped and marked bale and would involve the full suite of wool-baling equipment, which brokers usually have.
“I can’t fathom the reason behind it because there’s no way you are not going to be caught, particularly when you replace it with wool of that difference,” he told Guardian Australia. “I’m dying to find out who it is. I’ll put a picture of them up in the wool shed and write ‘idiot’ on it.”“I can’t fathom the reason behind it because there’s no way you are not going to be caught, particularly when you replace it with wool of that difference,” he told Guardian Australia. “I’m dying to find out who it is. I’ll put a picture of them up in the wool shed and write ‘idiot’ on it.”
He said the scam was not unheard of. “The wool industry has tried everything in the past 200 years,” he said.He said the scam was not unheard of. “The wool industry has tried everything in the past 200 years,” he said.
Wool growers such as Ingram, whose family has been farming near Cooma in southern New South Wales since 1971, deliver their product to a wool store along with a few extra bales of odd bits of fleece and sweepings that result after shearing.Wool growers such as Ingram, whose family has been farming near Cooma in southern New South Wales since 1971, deliver their product to a wool store along with a few extra bales of odd bits of fleece and sweepings that result after shearing.
The bales are inspected, sampled and stamped by a broker and the sample is sent off to be inspected by wool buyers, while the bales usually remain with the broker until sold. Top-quality fine wool can command a price of $17 per kilogram.The bales are inspected, sampled and stamped by a broker and the sample is sent off to be inspected by wool buyers, while the bales usually remain with the broker until sold. Top-quality fine wool can command a price of $17 per kilogram.
“What they have done is they have taken control of the wool, they have taken a sample and then they have sent that off for testing, it goes into the Australian system, they get a price for that sample and then they have replaced the wool with a low-grade wool,” Ingram said.“What they have done is they have taken control of the wool, they have taken a sample and then they have sent that off for testing, it goes into the Australian system, they get a price for that sample and then they have replaced the wool with a low-grade wool,” Ingram said.
The odds-and-ends bales delivered alongside a grower’s main wool line are usually mixed with similar offerings from other farmers and scrubbed to produce a low-quality product that is often used in insulation or for other purposes where the cosmetic appearance of the wool does not matter.The odds-and-ends bales delivered alongside a grower’s main wool line are usually mixed with similar offerings from other farmers and scrubbed to produce a low-quality product that is often used in insulation or for other purposes where the cosmetic appearance of the wool does not matter.
Ingram said the per kilogram price of less than $1/kg indicated the wool was “basically dags”, referring to the often stained wool removed from the back end of the sheep.Ingram said the per kilogram price of less than $1/kg indicated the wool was “basically dags”, referring to the often stained wool removed from the back end of the sheep.
“If the do that, they are replacing it with some really – and I mean really – particularly shitty wool,” he said.“If the do that, they are replacing it with some really – and I mean really – particularly shitty wool,” he said.
Ingram said he was not concerned the thefts would threaten the integrity of Australia’s wool supply chain, because he said they would be easily discovered. But he said that clearly there were some weaknesses that should be tightened up.Ingram said he was not concerned the thefts would threaten the integrity of Australia’s wool supply chain, because he said they would be easily discovered. But he said that clearly there were some weaknesses that should be tightened up.
“The quality of wool coming off Australian farms is like nothing ever seen before,” he said. “It’s important given where we are at, and all the money we spend on marketing and the provenance of the product, that we properly address this interception of the value chain and put in place the proper processes to make sure it doesn’t happen again.”“The quality of wool coming off Australian farms is like nothing ever seen before,” he said. “It’s important given where we are at, and all the money we spend on marketing and the provenance of the product, that we properly address this interception of the value chain and put in place the proper processes to make sure it doesn’t happen again.”
It is the second significant wool theft reported in Victoria this year. In March, police reported the theft of $60,000 worth of wool – about 40 bales – from a Laverton wool broker.It is the second significant wool theft reported in Victoria this year. In March, police reported the theft of $60,000 worth of wool – about 40 bales – from a Laverton wool broker.
VictoriaVictoria
Business (Australia)Business (Australia)
Australian police and policingAustralian police and policing
MelbourneMelbourne
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