Police have made a formal bid in the High Court to seize property they allege is associated with a failed finance company director who is serving more than eight years in jail for fraud and misleading investors.
Police took unprecedented action last year to restrain assets they said were associated with two jailed Capital + Merchant Finance directors, Neal Nicholls and Wayne Douglas.
When these assets were frozen, the High Court heard that the police were also targeting two properties allegedly associated with Douglas.
The Commissioner of Police has now made a profit forfeiture application in the Auckland High Court for one of these properties, which Douglas bought in 2008 and had a capital value of $560,000 as of 2011. The property has a $271,000 mortgage over it.