Leticia
Drake and Gavin Stewart had their Christchurch home and earthquake insurance
payouts seized as proceeds of crime having been funded with money from benefit
fraud.
Drake, currently
serving two years nine months jail for benefit fraud, left fellow staff at
Countdown so annoyed with her tales of living it up on welfare whilst working
that they dobbed her in. The High Court was told she received more than
$250,000 over a fifteen year period in what was described as a highly
premeditated and cynical benefit fraud. Recoveries
under the Criminal Proceeds (Recovery) Act can go back only seven years. Fraudulently claimed welfare benefits and
Working for Family tax credits totalled $136,500 for the seven year period.
The family home in
Emmett Street, Shirley, was purchased from Housing NZ in March 2010. It was then substantially upgraded and
refurbished. Justice Dunningham ruled
any property improved by the proceeds of crime is ‘tainted’ and can be
confiscated. Benefits were paid into
Drake’s bank account and this money used not only for household expenses but
also for mortgage payments, payment of insurance premiums and to renovate their
home. The Emmett Street property was
confiscated, together with earthquake insurance payouts totalling $23,100 and
funds held in a bank account.
Mr Stewart benefitted
from the fraud, Justice Dunningham said.
His own funds were freed up by having fraudulent benefit payments help
fund their purchase and renovations. Justice
Dunningham dismissed as not credible Mr Stewart’s claim to be unaware of
Drake’s long running benefit fraud over the time he was her de facto
partner. Mr Stewart was described as a
self-employed electrician. There was
evidence of tax evasion with Mr Stewart doing cash jobs on the side and not
declaring income.
Commissioner
of Police v. Drake & Stewart – High Court (27.11.17)
18.012