Lavish purchases hid drug proceeds

A convicted methamphetamine cook, who paid $66,500 in cash for a diamond ring, has been convicted of large-scale money laundering.

In the High Court at Auckland yesterday Justice Hugh Williams, sitting without a jury, found Brett Lionel Allison guilty of laundering not less than $500,000.

The judge said that Allison had unexplained income of more than $711,000 over a 10-month period in 2000. Allison is to be sentenced next month.

He was found guilty last year by a High Court jury of manufacturing methamphetamine and conspiring to supply the drug.

The Crown alleged that Allison's illegal activity produced a minimum of $711,000 in cash, which he concealed by buying property, vehicles and jewellery.

On a weekly ACC benefit of $418, Allison, paid $66,500 cash for an 18-carat gold ring with 3 carats of diamonds. He paid $65,000 cash for a Harley-Davidson Road Rage motorcycle and a further $5000 for a nitrous oxygen enhancement system.

The Crown said he also paid for two houses with cash and bought more vehicles mostly for cash.

Cash was also paid for bills such as rates and repairs, but the forensic accountant, who assessed Allison's unexplained income at more than $711,000, took no account of personal expenditure such as food or petrol.

Justice Williams said that Allison engaged in a large number of transactions, mostly for cash, and his ability to do so "far outstripped his ability to finance those transactions from proved legitimate income".

"There is no means by which Mr Allison could have financed his lifestyle, largely cash-based - which resulted in [the forensic accountant's] calculation that he had at least $711,774.34 of unexplained sources of funds over the period - from legitimate income."

Allison was cleared of a second money laundering charge.