The Criminal Proceeds (Recovery) Act has been in force for 15 years.
The Criminal Proceeds (Recovery) Act has been in force for 15 years.
KEY POINTS:
Police seized at least $60 million worth of properties last year in a crackdown on crime.
The seizures were made under the Criminal Proceeds (Recovery) Act 2009, a piece of legislation designed to help police fight crime by taking away the profits that make it worthwhile.
There have been about 1100 restraining orders for properties since the law came into force in 2009.
The confiscated properties are some of the more than 60 homes, apartments and blocksof land police seized last year, valued at at least $60 million, as part of a crackdown on assets allegedly linked to crime.
Following an order granted in September in the tobacco case, police confiscated nine houses and apartments in Christchurch, Auckland, Wellington and Queenstown which all had links to the 42-year-old man’s allegedly illegal doings.
Police and Customs raided an alleged illegal cigarette factory in Christchurch, seizing 408kg of tobacco and more than 11,000 cigarettes. They alleged the operation was an attempt to evade more than $850,000 in tobacco taxes.
A 42-year-old businessman from Christchurch was charged after a raid. Photo / Customs
The man had allegedly stolen tobacco to manufacture cigarettes (pictured) for a warehouse in Christchurch. Photo / Customs
Woman on $10k yearly income despite owning two homes
A couple whose legitimate income was considered “inconsistent” with their lifestyle had two Flaxmere homes restrained in October.
Police found a Louis Vuitton handbag containing $68,000 when they searched a house near Tauranga. File photo / NZME
The restraining order was made after one of the parties was arrested on multiple meth charges, as well as allegations of participation in an organised criminal group.
“Police seized slightly over $70,000 cash at an address rented by [the parties],” the restraint order said.
“They also found a money counting device, a pistol, ammunition, cutting agent, multiple mobile phones, as well as more cash in a vehicle parked in the driveway. Police have also analysed encrypted messaging from [the man’s] phones consistent with methamphetamine distribution, which is said to involve at least 11 kilograms with a purchase price of at least $1.54 million.”
The order noted the man’s income, based on Inland Revenue records, showed minimal legitimate income since 2018, averaging about $6000 a year. His partner averaged about $10,500 a year since 2017.
“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.”
More than $70,000 was seized from the couple's home. Photo / NZ Police
The seized homes were in the woman’s name.
Century-old Greymouth home considered ill-gotten gains
A ramshackle home with a rusty, corrugated iron roof with a value estimate many Auckland home-buyers would desire was restrained in February.
The three-bedroom house in Taylorville on the West Coast has an RV of just $150,000, and a shockingly cheap sales history.
The property, built in 1910, was first sold in the 90s for $22,000 and has never sold for more than $45,000.
Police called for the property to be restrained after the owner was convicted of growing and selling cannabis in breach of the Misuse of Drugs Act and diverting electricity illegally.
The court made the restraining order without notice, which it can do if it is “satisfied that there is a risk of the proposed restrained property being destroyed, disposed of, altered or concealed if notice were given to the person or those persons”, the order said.
Recidivist meth dealer’s Taranaki lifestyle block locked down
A drug dealer with a history of recidivist meth offending had his property restrained after a police sting uncovered meth hidden in secret compartments of his home.
The man, who has since been sentenced to eight years in jail, was caught in October 2023 and his property was restrained in February last year.
The meth dealer had his property restrained in February last year. Photo / File
He was the target of a police operation started in November 2022, focusing on his supply and sale of meth in the Taranaki area, a court order said.
Police surveilled and intercepted private communications between the man and associates during the investigation.
A search of his address revealed a firearm and ammunition, tens of thousands of dollars in cash, and 554g of meth.
“The cash was hidden inside a secret compartment in a glass display cabinet in a location separate to where the bulk of the methamphetamine was located, also hidden in another secret compartment,” the court decision said.
His seized property in Lepperton has an RV of $950,000. It was last sold in 2020 for $630,000.
$60 million worth of “tainted” properties confiscated in 2024
Police seized at least $60 million worth of properties last year in a crackdown on crime, accusing the owners of acquiring them through illegal dealings.
The confiscated properties equate to more than 60 homes, apartments and blocks of land - and are just a fraction of the more than 1000 restrained by police in the last 15 years.
But the millions in properties seized is a drop in the bucket compared to the value of all assets and cash seized in the same time frame. That figure is estimated to be about $1.26 billion as of the end of the 2023/2024 financial year.
The seizures were made under the Criminal Proceeds (Recovery) Act 2009, a piece of legislation designed to help police fight crime by taking away the profits that make it worthwhile.
Under the act, property is deemed to be “tainted”, and therefore liable for confiscation, if money is spent on it which has been obtained from significant criminal activity.
While police are in charge of applying for the initial restraining order over a property, it is then handed into the care of the Official Assignee until the case is properly argued - and the property either goes back to the owner, to another party, or to the Crown.
There have been about 1100 restraining orders for properties since the act came into force in 2009, though this doesn’t take into account many other items and assets seized. It is common for these proceedings to drag on for years before the court makes a forfeiture order.
