KiwiSaver funds totalling $109,200 held in the name of convicted
fraudster Joanne Harrison cannot be seized as proceeds of crime the High Court
ruled.
Sentenced
to three years and seven months jail for a $726,000 fraud whilst general
manager at the Ministry of Transport, Harrison challenged government attempts
to seize her KiwiSaver funds. Government
is seeking reimbursement from assets allegedly acquired with tainted funds: a
property in Waikuku Road, Waimate North; bank accounts; a BMW; cash; jewellery;
high value watches; and Harrison’s KiwiSaver account.
Justice
Ellis ruled ‘lock-in’ rules in the KiwiSaver Act override any power to seize
accounts as proceeds of crime. Any
criminals intending to use a Kiwisaver account as a safe haven for ill-gotten
gains were warned the Criminal Proceeds (Recovery) Act has a general anti-avoidance
provision allowing courts to unwind any arrangement designed to defeat seizure.
The court
was told Harrison intends to leave New Zealand permanently when released from
prison. She is expected to then apply
for withdrawal of her KiwiSaver balance.
Commissioner of Police v. Harrison – High Court (14.12.17)
18.020