Police can impound assets in New Zealand suspected to be proceeds of crimes committed overseas. Xiao Hua Gong, also known as Edward Gong, is under arrest in Canada. Police allege bank accounts and land in New Zealand valued at some sixty million dollars are part of a money-laundering scheme designed to get ill-gotten gains out of China.
International media reports put Mr Gong at the centre of an alleged pyramid-selling fraud in China. He was arrested in Toronto just before Christmas 2017, charged with breaches of Canada’s securities law. Gong does not live in New Zealand. Police say he is unlikely to be charged in this country with any criminal offences.
Police allege $77 million dollars was transferred to New Zealand, with assets valued at $60 million remaining after some of the funds were moved on to Canada. A restraining order under the Criminal Proceeds (Recovery) Act was imposed on these New Zealand assets.
Commissioner of Police v. Gong – High Court (25.06.18)
18.131