An Auckland light industrial unit converted without resource consent into residential accommodation for immigrant workers and WINZ beneficiaries has been targeted for confiscation on grounds receiving rental income amounted to a ‘significant criminal activity.’
The High Court was told a warehouse on Maich Road in a Manurewa light industrial zone was used to house both foreign workers and WINZ beneficiaries from 2015 after being converted into 23 separate bedrooms with kitchen and bathroom facilities attached. Residents were charged $200 per week for accommodation. No building consents were obtained for the alterations. A land use resource consent lodged with Auckland City in 2017 to change zoning to residential was withdrawn after Council inspectors indicated consent would be refused.
Police took action, alleging collection of rentals amounted to a significant criminal activity. Three of the participants: Jenni Diana Farmer, William Robert Farmer and Mark Vincent Hubble negotiated a Criminal Proceeds (Recovery) Act settlement. Paul Andrew Knights challenged allegations he was involved in any criminal activity. While a company he owns received about $343,000 in rentals for an eighteen month period starting late 2017, he was unaware of zoning and Building Act issues, he said.
Justice Lang ruled that Mr Knights was wilfully blind to the issues; he had received multiple emails from Mr Farmer outlining Council objections. A restraining order was placed over Mr Knight’s interest in the converted warehouse, pending prosecutions for alleged breaches of the Resource Management Act and the Building Act. Mr Knights says criminal proceeds legislation is being used improperly. It was never intended to be used as grounds to seize assets for breaches of public welfare regulations, he says.
Commissioner of Police v. Knights – High Court (9.05.22)
22.083