Mathew Phillip Karetu, 38, was arrested in March after covert investigation Operation Yellowstone targeted an Auckland businessman selling commercial quantities of methamphetamine.
Karetu,who was living in Tauranga at the time, was one of his customers.
The pair met at a bar in Katikati, northwest of Tauranga, twice in 2023 to exchange cash and drugs in the carpark.
Encrypted messages showed Karetu purchased 1kg of meth for $140,000 at one meetings.
As the national president of the Mongrel Mob Barbarians, a faction of the gang who ride motorcycles, Karetu used his status and criminal connections to distribute the drug around the North Island.
One of his prospects for the gang would deliver methamphetamine on Karetu’s behalf to buyers in the Bay of Plenty, Hawkes Bay, Waikato, and Wellington. The prospect also picked up cash from the sales.
Karetu was selling ounces of meth for about $5000, according to encrypted messages the police discovered on his phones.
When they searched his home, detectives also found a 9mm semi-automatic pistol, a cash counting machine, and $68,100 inside a Louis Vuitton handbag. There was also $2000 in a TV cabinet, and another $2000 in a car parked on the driveway.
The cash was restrained under the Criminal Proceeds Recovery Act, along with two Hastings properties linked to Karetu and five vehicles, including his prized Harley-Davidson motorcycle.
“Stripping assets derived through drug dealing activity strikes at the heart of what organised crime figures wish to achieve,” Detective Senior Sergeant Mike Fischer said at the time of Karetu’s arrest.
“Seizing their riches created by causing harm and distress in the community not only denies them the satisfaction of enjoying those assets, it also helps provide some restitution for the damage caused to the community.”
Under the law, police do not need a conviction.
They only have to show that someone profited from criminal offending to the lower standard of proof applied in civil cases – “on the balance of probabilities” – rather than surpassing the more difficult “beyond reasonable doubt” threshold for criminal cases.
According to a recent High Court judgment, Karetu was able to obtain those assets despite tax records revealing the Mongrel Mob president declared an average income of only $6000 each year.
“It is alleged the couple have led a lifestyle that is inconsistent with this level of income, including receiving significant cash deposits into their bank account during this period, enjoying expensive holidays, carrying out extensive property renovations, and acquiring high value vehicles,” Justice Karen Grau wrote in a decision released in October.
Shortly afterwards Karetu pleaded guilty to offering to supply, supplying, and possession of a Class-A drug for supply, unlawful possession of a pistol, and possession and supply of synthetic cannabis.
He will be sentenced in the Manukau District Court in February 2025.
The Mongrel Mob Barbarians have chapters across New Zealand and ride motorcycles, unlike most traditional Mobsters who tend to travel in Ford vehicles.
Earlier this year, the Barbarians chapter based in Ōpōtiki was targeted by Operation Highwater, a separate National Organised Crime Group investigation, into alleged meth dealing by the gang.
As well as drug dealing, the covert investigation allegedly stopped a couple of hits – described by police as probable homicides – by the gang as it planned to shoot its rivals. One was at a tangi.
More than 30 people were arrested and charged in October. At the time, Karetu was on bail at the Grace Foundation in South Auckland for his drug dealing uncovered earlier in Operation Yellowstone.
Police in Operation Highwater searched the residential bail facility where Karetu was living and found $76,700 in a shared communal space, as well as a loaded .22 pistol.
No charges have been laid but police confirmed the investigation is ongoing.
Jared Savage covers crime and justice issues, with a particular interest in organised crime. He joined the Herald in 2006 and has won a dozen journalism awards in that time, including twice being named Reporter of the Year. He is also the author of Gangland and Gangster’s Paradise.