With their Christchurch home held in name of a family trust, High Court approved a negotiated proceeds of crime settlement allowing thirty per cent of net proceeds from a forced sale be paid to spouse of convicted dealer Xu Zhao under strict conditions; Zhao to have no access to these funds.
Spouse Xiaoxin Chen has no direct ownership rights over their family home, occupied by family as trust beneficiaries.
Her cash payout was allowed on hardship grounds. Ms Chen has responsibility for two young children. She lacks local family support.
Ms Chen was not charged with any offences related to her husband’s synthetic cannabis dealing.
The High Court was told Zhao was arrested on the street together with a fellow dealer, maintaining a 9am to 9pm delivery service.
He pleaded guilty to multiple offences, including participation in an organised criminal group.
Forfeiture of $555,000 as proceeds of crime was agreed.
Proceeds from cash seized, Zhao’s bank balance and sale of a vehicle seized under the Criminal Proceeds (Recovery) Act were insufficient to pay the full $555,000.
A court-ordered sale of their trust-owned family home followed.
It was acknowledged that a hardship application by Ms Chen would likely succeed.
She is to receive thirty per cent of net proceeds from sale of the family home, payment into a bank account she alone controls.
Zhao personally is liable for any shortfall should seventy per cent of net sale proceeds be insufficient to clear the required $555,000.
Commissioner of Police v. Zhao – High Court (7.08.26)
26.225