Two members of a prominent horse racing family and a former jockey are among nine people arrested over a plot to smuggle cocaine worth a billion dollars into Victoria.

Federal Police swooped after a boat believed to be involved in the importation scheme sank in Bass Strait.

Shots show a man from Glenroy in Melbourne man handcuffed and walked to an unmarked police car.

READ MORE: Five ways the fuel crisis is about to hit home

Another from Morwell in regional Victoria was marched through the AFP loading bay.

They're two of nine men charged over plots to allegedly smuggle more than a billion dollars worth of cocaine into Victoria using fishing boats.

Among those arrested are prominent horse racing figures: trainer Grant Dalziel, his son Peter and former jockey Brian Park.

Former AFP Detective Supt David Craig claimed it was a "very sophisticated organisation".

"What I think makes it striking about this is, that the alleged use of trusted high profile figures from the racing industry, allegedly, and it shows that organised crime can embed itself, behind any respectable entities or industry."

READ MORE: Dezi Freeman's sister 'ashamed and angry' of police killer's actions

A 10 month probe began in May last year after four people were rescued from a boat off the South Gippsland Coast in treacherous conditions.

Their movements after were monitored.

Police say the drug importation syndicate involved sending out 'daughter vessels' into the Bass Straight to receive drugs from a 'mother ship', travelling through Australian waters.

They allegedly tried to smuggle quantities of up to 3.5 tonnes of cocaine into the country but their attempts failed.

"It's almost cinematic isn't it. It starts with a sunken vessel, and then the persistence of the people trying to retrieve that is a thread that leads to a billion dollar national drug distribution network," Craig said.

Over the past month raids have been carried out at properties across the state with a boat police believe was used by the accused conspirators seized.

Eight men were arrested in Victoria and one in Sydney.

The alleged offenders aged between 31 and 72 are now facing a combined 38 charges.

The accused men from Victoria will appear at the Melbourne Magistrates court again in July. 

Five of them are in custody, while the others were released on bail.

If convicted, seven of those arrested face the possibility of life behind bars.

NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.

• Download the 9NEWS App here via Apple and Google Play
• Make 9News your preferred source on Google by ticking this box here
• Sign up to our breaking newsletter here