Real estate owned by convicted drug dealer Paul Andrew Snowden’s family trust was ordered sold as part of $743,300 criminal profits order.
Snowden was convicted in 2010 on charges of supplying cannabis and in 2014 and then 2015 on charges relating to methamphetamine supply. The most recent convictions resulted in cumulative prison sentences of six years three months. Police took action under Criminal Proceeds (Recovery) Act to recover drug profits.
The High Court was told Snowden paid $460,000 in 2001 for a 1.6 hectare property on Karaka Road in south Auckland. Title was registered in name of Karaka Farmlets Ltd with Karaka Farmlets later coming to be owned by Snowden’s family trust. Snowden had absolute control over his family trust. He was trustee and a beneficiary. He held power to appoint and remove trustees. He was also sole director and a shareholder of Karaka Farmlets.
In the High Court, Justice Gault determined Snowden generated profits totalling $743,300 from drug dealing. While illicit profits did not fund the initial 2001 purchase of Karaka Road, subsequent mortgage payments funded from drug profits meant Karaka Road was ‘tainted property,’ Justice Gault ruled. Illicit profits invested in ‘tainted property’ plus any capital gain are liable to forfeiture.
Sale of Karaka Road was ordered with up to $743,300 from proceeds of sale forfeit. Since the cash component of the trust’s original purchase was not tainted by criminal activity, it is only tainted mortgage repayments and that proportionate share of Karaka Road’s capital gain which can be seized on sale.
Commissioner of Police v. Snowden – High Court (12.08.20)
20.140