One of the three Maketū properties occupied by Mongrel Mob senior member Valentine Nicholas and subject to a profit forfeiture order. Photo / NZME
One of the three Maketū properties occupied by Mongrel Mob senior member Valentine Nicholas and subject to a profit forfeiture order. Photo / NZME
A High Court judge has given an official the power to take “whatever steps necessary” to dispose of three “idyllic” Bay of Plenty properties occupied by senior Mongrel Mob Maketū figure Valentine Nicholas and his partner, who refuse to leave.
The waterfront properties in Maketū are subject to a 2016 forfeiture order by Justice Anne Hinton for disposal under the Criminal Proceeds (Recovery) Act but have failed to sell despite four years of effort, as Nicholas refuses to obey court orders to vacate.
Justice Hinton ruled Nicholas and his partner Sheila Payne had unlawfully benefited from significant criminal activity involving the supply of drugs, money laundering and benefit fraud, and made an assets forfeiture order for a 123ha forestry block.
She also made a profit forfeiture order directing three Maketū Rd properties and Nicholas’ half-share in an 8ha property at Odey Rd in Whakamārama be disposed of.
Court documents revealed the maximum amount recoverable from the couple was $1.17 million, with $914,445 outstanding after the forfeited forestry block was sold in 2019.
On June 18, 2020, the Official Assignee – appointed to pursue the sales – advised Nicholas and Payne their right to occupy the properties was terminated and “vacant possession” was required in three months.
He was reminded again in August 2022, after real estate agents were engaged.
Nicholas continued to occupy the properties and oppose the sale, arguing it was inherited land and he had never been convicted of the criminal activities in the forfeiture order, according to the court documents.
The Official Assignee sought further directions from the High Court as Nicholas was “using threats and his gang affiliations to obstruct the sale” and refused to give access to agents or potential buyers.
Now High Court judge Justice Michele Wilkinson-Smith has given authority to the Official Assignee to take “whatever steps necessary” to dispose of the Maketū and Whakamārama properties. This could include gifting or selling below market value.
Justice Wilkinson-Smith’s May 23 written ruling included details of threats relating to attempts to dispose of the properties.
This included an expletive-ridden Facebook post made a week after the 2016 forfeiture order and threatening to destroy the properties.
The post included emojis of a pig, a knife, a police officer, a gun, a police car and a bomb.
Vehicles lined both sides of Maketū Rd during a 2020 protest relating to a profit forfeiture order against Maketū Mongrel Mob senior member Valentine Nicholas and his partner. Photo / NZME
In her ruling, Justice Wilkinson-Smith said she agreed with the Official Assignee that Nicholas’ ongoing occupation and gang affiliations were affecting the value of the Maketū properties.
“The properties themselves are described as idyllic but the value is affected by the presence of Mr Nicholas who refuses to vacate or give access to agents or potential purchasers.”
Wilkinson-Smith said the market value appeared to be “significantly below the capital value” of $1,755,000 largely because of those factors.
Offers to buy the properties were made in October and December 2022 and June 2023, and real estate agents involved in the sale expressed concerns about the health and safety risks and potential staff intimidation, the ruling showed.
The judgment said Nicholas had also prevented the properties from being connected to reticulated sewage as requested by the local council, and enabled a further structure to be built on the properties in September 2023 without the appropriate consents.
Justice Wilkinson-Smith said Nicholas acted as if the law did not apply to him.
“This situation cannot continue … Mr Nicholas’ actions necessitate the properties being sold below the market value they would attract but for his obstruction of the sale process.”
Justice Wilkinson-Smith acknowledged any recipient of the properties was taking on a “significant risk” in acquiring them.
She also granted the Official Assignee authority to keep details of offers on the properties confidential.
The judge said these orders would help obtain the best price possible.
“That outcome is in Mr Nicholas’ best interest as he has a right to any money that remains once the debt is paid.”
As of January 19 this year, Nicholas owed $129,469.47 in rates to the district council and Bay of Plenty Regional Council for the three properties and another $5117 in water rates, the ruling said.
The Official Assignee’s costs in pursuing this matter were $395,743.37 and Nicholas’ legal aid bill was $129,308.68.
The Official Assignee’s office was approached for comment about whether steps would be taken to evict Nicholas and Payne.
Vanessa Cook, the national manager of criminal proceeds integrity and enforcement at the Ministry of Business, Innovation and Employment, said they would follow up on Justice Wilkinson-Smith’s order.
“This is an operational matter which is confidential and hence we cannot comment.”
Sandra Conchie is a senior journalist at the Bay of Plenty Times and Rotorua Daily Post who has been a journalist for 24 years. She mainly covers police, court and other justice stories, as well as general news. She has been a Canon Media Awards regional/community reporter of the year.
