Drug dealer 'out of circulation'

Some of the cash retrieved from a safety deposit box used by Michael Joseph Cavanagh, who is believed to have made millions of dollars from supplying methamphetamine tablets or speed.

The conviction of Michael Joseph Cavanagh has taken a major figure in the manufacture of the drug speed out of circulation, the police said yesterday.

Cavanagh was arrested in August 2002 when police closed down his laboratories.

But he continued to manufacture and supply the drug, which is also known as methamphetamine, while on bail.

Cavanagh was found guilty in the High Court at Auckland on Monday night on a number of counts, including manufacturing and supplying the drug.

But he was found not guilty of conspiring to supply prison inmate Brett Allison with $300,000 worth of heroin to "see him through his lag".

Cavanagh's girlfriend, Shannon Kay Stevens, was convicted of charges including methamphetamine manufacture and supply.

Deborah Anne Henry was cleared of manufacture and supply, but was found guilty with the others of having material capable of making methamphetamine and possession of the drug for supply.

The guilty verdicts bring to 19 the number of people convicted in a police operation codenamed Illusion, which closed down eight or nine clandestine laboratories in 2002 and 2003.

Cavanagh was estimated by the police to have unexplained income of at least $960,000 over a five-year period.

"We came to that figure as a result of receipts that we obtained and things we could prove. Of course, that doesn't involve anything he paid in cash. The $960,000 is what we could prove, but it is going to be double that," Detective Sergeant Darryl Brazier, the officer in charge of the case, said after the verdicts.

Cavanagh's income soared in the 18 months from 2001 until his arrest in August 2002, when police closed down his first drug-making operation.

Police found a complete laboratory in an East Tamaki storage unit and another partial lab across the road, with enough chemicals to produce drugs worth $2 million.

When the detectives searched safety deposit boxes in Parnell they found $480,000 in cash, jewellery, gold and silver bullion and share certificates.

A number of firearms were also found, and Cavanagh pleaded guilty to these charges during the trial.

In addition, police seized five antique motorcycles, a Harley-Davidson, and four motor vehicles.

Cavanagh claimed his money was earned legitimately through trading in everything from mobile phones to jewellery, statues and even coal from the Titanic.

After their arrest, Cavanagh and Stevens were said to have continued their trade in methamphetamine while on bail. Prosecutor, Ross Burns, told the jury: "They continued on their merry way."

When police raided another East Tamaki storage unit in November the following year, they found more drug-making chemicals, gold bars and $40,000 in cash and another new Harley-Davidson.

A further $30,000 was found at Cavanagh's house.

Cavanagh and Stevens then went on the run from the police for the next 10 months but were caught shoplifting a $2.80 item from the Glen Innes Pak N Save. At the time Cavanagh had $700 in his pocket and $10,000 worth of methamphetamine was found discarded in a waste bin in the Pak N Save office after the pair were detained.

It later emerged that Cavanagh had paid cash to buy a $330,000 house.

Mr Brazier said Cavanagh was a "significant figure" in the drug scene.

With so much money coming in, Cavanagh purchased assets in an effort to launder the cash.

Property seized is now the subject of a Proceeds of Crime action.

"We have not sat down and done a tally, but it would be in the vicinity of $2 million when you take into account the house, the cash, gold, jewellery, motorcycles and vehicles and everything else," Mr Brazier said.

The case against Michael Cavanagh

* Arrested in August 2002 when police closed down his laboratories.

* Continued to manufacture and supply the drug while on bail.

* Found guilty in the High Court at Auckland on Monday on a number of counts, including manufacturing and supplying the drug.

* Found not guilty of conspiring to supply prison inmate Brett Allison with $300,000 worth of heroin.