Death does not block proceeds of crime claims. Relatives of the late David Allan Howard agreed to a police offer that one of two houses he owned be confiscated as a penalty for cannabis dealing. Kaeo-based Mr Howard died before criminal charges got to a court hearing.
In approving the Criminal Proceeds (Recovery) Act settlement, the High Court heard that a 2022 police drugs bust found a large cannabis growing operation at Mr Howard’s School Gully Road property.
Over a five year period ending 2022, he declared in total to Inland Revenue income of $73,600. Banking records showed nearly $140,000 cash passing through his bank account over the same period. This despite Mr Howard’s local reputation for living a largely cash-based lifestyle.
In 2021, he paid off a mortgage on his School Gully property and also purchased a neighbouring property for cash.
Police claimed both School Gully properties were ‘tainted:’ the mortgage on his home paid down from proceeds of crime; the neighbouring property purchased with ill-gotten gains.
On Mr Howard’s death, close relatives approached police seeking to resolve these outstanding proceeds of crime claims. Estate beneficiaries could not be paid out until this was sorted.
Police accepted that forfeiture and sale of the neighbouring property would be sufficient to recover the approximate value of cannabis profits made.
Police also accepted there might be legal complications in seeking forfeiture of Mr Howard’s School Gully home. His descendants might challenge this forfeiture on hardship grounds.
Police applied for forfeiture of the neighbouring property only.
Justice Brewer agreed. There was no evidence that any beneficiaries of Mr Howard’s estate had anything to do with his criminal activities.
Commissioner of Police v. Howard – High Court (15.10.24)
25.016