01 August 2017

Asset Forfeiture: Commissioner of Police v. McRae

A profitable commercial cannabis operation allegedly run by Andrew McRae led to suspended asset forfeiture orders against three Tirau properties owned by others but suspected of being used to launder proceeds of crime.
Three properties at Prospect Avenue in the South Waikato township of Tirau are held in the names of trustees for the Henson Family Trust.  Police allege Mr McRae contributed to purchases by the Trust with profits from cannabis dealing.  Trustees for the Henson Family Trust deny the purchases were tainted by drug money and argue confiscation would cause undue hardship.  Combined market value of the properties, as at July 2015, was $641,000.
The High Court approved a negotiated settlement under the Criminal Proceeds (Recovery) Act.  It was agreed $150,000 is to be recovered from a sale or refinancing of the three Trust properties.  The police would then make no further claims either against the properties or against Mr McRae and Ms Nicola Kenney.  Henson Family Trust trustees agreed to these terms. The $150,000 has to be paid within three months; by the end of October 2017.  Failing that, the High Court will reconsider a forced sale.
Commissioner of Police v. McRae – High Court (1.08.17)

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