With property prices falling and mortgage arrears increasing, the High Court ordered sale of a Christchurch property even before a court hearing to determine whether it was tainted as proceeds of crime.
It is common practice for police to get advance sale orders, converting to cash depreciating assets seized as potentially proceeds of crime such as motor vehicles, motor bikes and jet skis. It is an indication of the current state of the market that courts are now allowing advance sales of real estate.
In two months time, Darrin Stephen Baylis will be in court defending a Criminal Proceeds (Recovery) Act claim that three Christchurch rental properties were purchased with proceeds of crime.
It is alleged he made criminal profits totalling $1.03 million from selling methamphetamine, trading in motor vehicles without a licence, acting as a repossession agent without a licence and fraudulently obtaining an unemployment benefit.
Police obtained restraining orders over his assets, ahead of a ‘proceeds of crime’ hearing. Pre-hearing sales are permitted where necessary to preserve the cash value of seized assets.
The High Court was told three Baylis properties seized in Christchurch had dropped in value over the last twelve months. In addition, rents received from the properties were insufficient to meet mortgage commitments. All three properties are covered by the same mortgage.
Mr Baylis objected to any pre-hearing sale. A sale is neither justified nor required, he said.
Justice Harland ruled it was appropriate to make an advance sale of one property only, to reduce the level of mortgage debt. Mr Baylis was invited to nominate which of the three should be sold. He agreed to sale of a property in Frankleigh Street, Somerfield.
Commissioner of Police v. Baylis – High Court (27.10.23)
23.183