Commissioner, New Zealand Police v Blance

[2019] NZHC 2457

IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY

I TE KŌTI MATUA O AOTEAROA TE WHANGANUI-A-TARA ROHE

CIV-2017-485-197

[2019] NZHC 2457

UNDER

the Criminal Proceeds (Recovery) Act 2009

IN THE MATTER

of an application pursuant to sections 43, 44, 52 and 58

BETWEEN

THE COMMISSIONER, THE NEW ZEALAND POLICE

Applicant

AND

STEVEN ALBERT BLANCE

First Respondent

JASON LANCE WALKER

Second Respondent

TRACEY MELANIE SNOOK
First Interested Party

HAYLEY KINI-WAI KIRWAN
Third Interested Party

TANYA MICHELLE GRACE
Fifth Interested Party

ROBERT SHANE BROMLEY
Sixth Interested Party

KARL WILLIAM GRUEBNER
Seventh Interested Party

DAVID ALASTAIR MINKE

Eighth Interested Party

Hearing:

On the Papers

Counsel:

S B McCusker for Applicant

K J Jefferies for Second Respondent

Judgment:

27 September 2019

THE COMMISSIONER, THE NEW ZEALAND POLICE v BLANCE & ORS [2019] NZHC 2457 [27

September 2019]

JUDGMENT OF CLARK J

Introduction

[1]                 The Commissioner of Police has applied for a profit forfeiture order against the first and second respondents. The Commissioner now seeks approval of a proposed settlement with the second respondent, Mr Walker, under s 95 of the Criminal Proceeds (Recovery) Act 2009 (the Act).

[2]                 The subject of the forfeiture application is a 2003 Ford Falcon, registration GTP340, registered in Mr Walker’s name (the Falcon).

Background

[3]                 In June 2018 Mr Blance was sentenced to 14 years, six months imprisonment after pleading guilty to various charges related to the possession and supply of methamphetamine. The summary of facts recorded that Mr Blance purchased 15kg of methamphetamine from Auckland suppliers and on-supplied to associates within his distribution networks.

[4]                 On 12 April 2017 the Commissioner filed an application for restraining and effective control orders in respect of various vehicles, including the Falcon. While Mr Walker was the registered owner of the Falcon, Police had observed Mr Blance driving it on five occasions in early 2017. Following further inquiries, the Commissioner determined that Mr Walker was also involved in the supply of methamphetamine and he was joined as a party to this proceeding.

[5]                 In a judgment delivered 12 February 2018 Dobson J declared he was satisfied Mr Walker was implicated in the receipt of methamphetamine and found there were reasonable grounds for a belief that Mr Walker had unlawfully benefitted from

significant criminal activity.1 Dobson J accordingly granted a restraining order in respect of the Falcon.2

The proposed settlement

[6]                 The parties have now agreed to settle the question of forfeiture of the restrained property on the terms set out in a joint memorandum dated 19 September 2019.

[7]                 Under s 95(3) of the Act, the High Court must approve a settlement if it is satisfied it is consistent with the purposes of the Act and the overall interests of justice. The primary purpose of the Act is to establish a regime for the forfeiture of property that has either been derived directly or indirectly from significant criminal activity, or that represents the value of a person’s unlawfully derived income.3

[8]                 Under the proposed settlement, the Falcon will be forfeited to the Commissioner. Upon the granting of the order, the registration plates from the Falcon (registration GTP340) will be returned to Mr Walker. The licence plate is valued at only $599 and the time and cost of continuing proceedings against Mr Walker in respect of the plate would vastly outweigh its actual value.

[9]                 For the following reasons, I am satisfied the proposed settlement is consistent with the purposes of the Act and with the overall interests of justice:

(a)The Commissioner and Mr Walker agree that Mr Walker has been involved in significant criminal activity.

(b)Mr Walker received an unlawful benefit of $240,000 from his significant criminal activity.4

(c)The value of the Falcon is estimated at $25,000 — approximately 10% of the total benefit. The Commissioner is unaware of any other assets

1      Criminal Proceeds (Recovery) Act 2009, s 24; Commissioner of Police v Blance [2018] NZHC 108 at [6] and [21].

2 At [22].

3      Criminal Proceeds (Recovery) Act 2009, s 3(1).

4      Section 53.

held by Mr Walker that might be able to make up the shortfall.

(d)Not pursuing the licence plate is in the interests of expediency.

(e)There will be significant savings of time and cost if Mr Walker’s interests in the proceeding can be resolved by consent without the need for litigation. An agreed settlement will also provide certainty of outcome.

[10]Accordingly the settlement is approved and the following orders are made:

(a)The following property is forfeited to the Commissioner:

·A 2003 Ford Falcon motor vehicle, including ignition keys, registration GTP340 registered in the name of the second respondent.

(b)The applicant is to remove and return the registration plate GTP340 to the second respondent.

(c)The order is in full and final settlement of the proceedings against the second respondent.

(d)Costs lie where they fall.

Karen Clark J

Solicitors:
Crown Solicitor, Wellington