After pleading guilty to benefit fraud totalling $347,400, Pauline Lowen asked cash held under the Criminal Proceeds (Recovery) Act be released so she could pay reparations. Release was refused. Social Development said assets seized would be taken into account when suing for recovery.
Following a 2017 investigation into benefit fraud, police seized and sold two Canterbury properties: one in Heathridge Place, Lincoln, owned by Lowe and her former husband, and; a rental property in Bower Avenue, Parklands, owned by a Lowens-controlled company. The two sales netted $154,500.
Her former husband says he is entitled to half; his share of relationship property. She says she needs the balance to pay reparations to Social Development. If the funds are seized by police, it reduces the assets otherwise available for repayment, she says. In the High Court, Social Development conceded it made little difference which arm of the state was repaid: police or Social Development. Either way, taxpayers were being compensated.
Given Lowen’s years of dishonestly claiming benefits to which she was not entitled, any idea of releasing cash to her was fraught with risk, Justice Mander said. Social Development said it would take into account cash realised from sale of the two properties when assessing reparations. To what extent the full $154,500 can be credited to Lowen is yet to be decided; it may be reduced by her former husband’s relationship property claim. Social Development said he was fully aware of the offending and benefitted from it. Mr Lowen has not been charged in relation to his spouse’s benefit fraud. She pleaded guilty.
Commissioner of Police v. Lowen – High Court (7.12.18)
19.020