Commissioner of Police v Richards
[2024] NZHC 146
•12 February 2024
IN THE HIGH COURT OF NEW ZEALAND NEW PLYMOUTH REGISTRY
I TE KŌTI MATUA O AOTEAROA NGĀMOTU ROHE
CIV-2023-443-58
[2024] NZHC 146
UNDER the Criminal Proceeds (Recovery) Act 2009 IN THE MATTER OF
an application under ss 21, 24 and 25 of the Act
BETWEEN
COMMISSIONER OF POLICE
Applicant
AND
ANTHONY GORDON RICHARDS
First Respondent
REECE TAURAKAHA RONGONUI
Second RespondentTONY JOHN LOOKER
Third Respondent
AND
GRAEME RICHARDS
First Interested Party
TERRY JOHN MONAHAN
Second Interested Party
Hearing (by VMR): 5 February 2024 Counsel:
J E Bourke for the Applicant
Judgment:
12 February 2024
JUDGMENT OF GWYN J
[1] The Commissioner of Police (Commissioner) filed an on-notice application for restraint orders on 18 December 2023.
COMMISSIONER OF POLICE v RICHARDS [2024] NZHC 146 [12 February 2024]
[2] On 2 February 2024, La Hood J granted the order, by consent, in respect of items (a)-(e) inclusive of the application, being the property in which the first respondent has an interest.
[3] The application remains extant in respect of items (f) and (g). The first of these is a quantity of cash totalling $17,610 found at the address of the second respondent, Reece Rongonui. The second item is a quantity of cash totalling $113,000, found during the search of a motor vehicle driven by the third respondent, Tony Looker.
[4] Counsel for the applicant advises that the second respondent was served with the application on 18 January 2024, the third respondent on 27 December 2023, the first interested party, Graeme Richards, on 3 January 2024, and the second interested party, Terry Monahan on 4 January 2024.
[5] To date none of those parties has filed a notice of opposition or otherwise responded to the application.
[6] Accordingly, the Commissioner seeks an on-notice restraining order for a 12 month period in respect of the following property:
(a)a quantity of cash totalling $17,610 found during the search of the address of the second respondent, Reece Rongonui; and
(b)a quantity of cash totalling $113,000 found during the search of Nissan Skyline motor vehicle, Registration JDL382, being a vehicle driven by the third respondent, Tony Looker.
[7] It is alleged that both the second respondent and the third respondent have been involved in “significant criminal activity” as defined in s 6 of the Criminal Proceeds (Recovery) Act 2009 (the Act), dealing in the sale of the Class A controlled drug methamphetamine.
[8] The orders are sought on the basis that there are reasonable grounds to believe that:
(a)the property is “tainted property” as defined in s 5 of the Act; and
(b)Mr Rongonui and Mr Looker have unlawfully benefited from significant criminal activity, as defined in ss 6 and 7 of the Act.
Evidence provided by the Commissioner
[9] An affidavit from Police Specialist Investigator, Christine Walker, dated 14 December 2023 is filed in support of the application.
[10] Ms Walker explains that Police commenced Operation Little in November 2022, in relation to the suspected supply and sale of the Class A controlled drug methamphetamine by the first respondent, Anthony Richards, in the Taranaki area.
[11] During the investigation, surveillance device warrants authorising the interception of private communications were issued in respect of Mr Richards, Mr Rongonui and their associates.
[12] During 12 and 14 October 2023 a number of search warrants were executed on termination of Operation Little.
[13] The first search warrant was executed on 12 October 2023 at the address of the second respondent Mr Rongonui. Located at this address was 16.2 g of methamphetamine, the seized $17,610 cash, ammunition and stolen property.
The cash totalling $17,610 located at Mr Rongonui’s address comprised:
(a)$6,610 cash consisting of $50 and $20 notes in a black Remington shaving bag. The notes were loose within the bag.
(b)$11,000 cash consisting of $100, $50 and $20 notes in a clear snap lock bag. The notes were loose within the bag.
[15] The bag containing the $11,000 cash was located on top of the bed where the bag containing the 16.2 grams of methamphetamine was also located. Hidden underneath the mattress was the bag containing the $6,610 cash.
[16] The second search warrant was executed on 13 October 2023, on the Nissan Skyline registered to the third respondent, Mr Looker, and being driven by him when he was stopped along State Highway 3, Motunui. The search located the seized
$113,000 cash, together with 44 grams of methamphetamine.
[17] Cash totalling $113,000, in clear snap lock bags, was located in the Nissan Skyline:
(a)$30,000 cash in six $5,000 bundles of $20 notes. Two bundles in the same bag secured with three rubber bands, the other four bundles in the other two bags, secured with two rubber bands. Two bundles of $5,000 cash were packaged side by side in each clear snap lock bag.
(b)$80,000 cash in eight $10,000 bundles of $50 notes. All bundles were secured by two rubber bands. Two bundles of $10,000 cash were packaged side by side in each clear snap lock bag.
(c)$3,000 cash consisting of $50 and $20 notes, secured with one rubber band, packaged in a clear snap lock bag.
[18] In the Nissan Skyline where the cash was found, 52.4 grams of methamphetamine was located, hidden in various containers and cases. A working set of digital scales with a white crystal residue on them was also found. This was in addition to the note located in the top left pocket of the third respondent (Looker’s) vest, indicated what “Paul” owed him and what he owed “Paul”.1
[19] A third search warrant was executed on 13 October 2023 at the address of the first respondent, Mr Richards. The search of this address located a firearm and ammunition as well as the seized $40,000 cash and 554 grams of methamphetamine.
1 Ms Walker’s affidavit indicates that the identity of “Paul” is unknown to her.
[20] Cash totalling $40,000 was located in two snap lock bags at Mr Richards’ property. The cash was in four $10,000 bundles of $50 notes, each bundle secured with two rubber bands. Two bundles of $10,000 were packaged side by side in a clear snap lock bag.
[21] The cash was hidden inside a secret compartment in a glass display cabinet in a location separate to where the bulk of the methamphetamine was located, also hidden in another secret compartment.
[22] Located at the address were two sets of digital scales, with one set found in the kitchen area.
Second respondent – Reece Rongonui
[23] The charges laid against Mr Rongonui as a result of the offending identified by Operation Little are:
(a)Possession for supply – methamphetamine and amphetamine (Class A controlled drugs).
(b)Sell/give/supply/administer/deal methamphetamine and amphetamine (Class A controlled drug) x 2.
(c)Unlawfully carry/possess firearm/restricted weapon/explosives.
[24] Mr Rongonui has pleaded guilty to (a) and (b) above but has pleaded not guilty to the unlawful possession of ammunition. He was due to be sentenced in the New Plymouth District Court for the drug charges on 21 December 2023.
[25] Ms Walker’s affidavit notes that Mr Rongonui has no declared income for the past seven financial years and is not in receipt of any assistance from the Ministry of Social Development. During that period, Mr Rongonui has acquired motor vehicles and accessed large sums of cash funds, inconsistent with his known income.
[26] On that basis, Ms Walker says there is little evidence supporting a claim that the seized $17,610 cash came from legitimate sources of income.
[27] Mr Rongonui has 71 criminal convictions, 16 for drug-related matters of possession of methamphetamine, possession of cannabis, possession of utensils for methamphetamine use, possession of utensils for cannabis and cultivates cannabis.
[28] Mr Rongonui is believed to have affiliations to the New Zealand Nomads organised criminal group.
Third respondent – Tony Looker
[29] Mr Looker is an associate of the first respondent. As a result of Operation Little he currently faces the following charges:
(a)Possession for supply – methamphetamine and amphetamine (Class A controlled drug).
(b)Sell/give/administer/deal methamphetamine and amphetamine (Class A controlled drug).
[30] Mr Looker’s next court appearance is on 8 February 2024 in the New Plymouth District Court.
[31] Ms Walker’s affidavit discusses Ms Walker’s declared income as provided by the Inland Revenue Department. For the period 2017-2023, Mr Looker’s declared gross income was $176,282.51, primarily derived from an MSD benefit he has received since 2019.
[32] Ms Walker deposes that, considering Mr Looker’s gross income over that seven year period, there is little evidence supporting a claim that the seized $113,000 cash located in the Nissan came from legitimate sources of income.
[33] Mr Looker has previously been convicted and sentenced to nine months’ supervision for possession of methamphetamine and possession of utensils for methamphetamine use.
Discussion
[34] In light of the affidavit evidence I am satisfied that the application may be granted.
[35] The Act requires that I must believe, on reasonable grounds, that the property over which the orders are sought is “tainted property”, as defined in s 5(1) of the Act:
tainted property—
(a)means any property that has, wholly or in part, been—
(i)acquired as a result of significant criminal activity; or
(ii)directly or indirectly derived from significant criminal activity; and
(a)includes any property that has been acquired as a result of, or directly or indirectly derived from, more than 1 activity if at least 1 of those activities is a significant criminal activity
[36]Significant criminal activity is defined in s 6 of the Act:
6 Meaning of significant criminal activity
(1)In this Act, unless the context otherwise requires, significant criminal activity means an activity engaged in by a person that if proceeded against as a criminal offence would amount to offending—
(a)that consists of, or includes, 1 or more offences punishable by a maximum term of imprisonment of 5 years or more; or
(b)from which property, proceeds, or benefits of a value of the threshold amount or more have, directly or indirectly, been acquired or derived.
(2)A person is undertaking an activity of the kind described in subsection
(1) whether or not—
(a)the person has been charged with or convicted of an offence in connection with the activity; or
(b)the person has been acquitted of an offence in connection with the activity; or
(c)the person’s conviction for an offence in connection with the activity has been quashed or set aside.
(3)Any expenses or outgoings used in connection with an activity of the kind described in subsection (1) must be disregarded for the purposes
of calculating the value of any property, proceeds, or benefits under subsection (1)(b).
[37] Having reviewed Special Investigator Walker’s affidavit, I consider that there are reasonable grounds to believe that the property is tainted for the following reasons:
(a)the evidence suggests that each of Mr Rongonui and Mr Looker are engaged in the sale of methamphetamine;
(b)there are inconsistencies between Mr Rongonui and Mr Looker’s declared incomes and the significant cash seized from their respective properties;
(c)this is highly suggestive that cash obtained from the search warrants may have been obtained through drug offending.
[38] I am also satisfied in relation to the property sought to be restrained that the second and third respondents have each unlawfully benefited from a significant criminal activity.
[39] I am therefore satisfied that it is appropriate for restraining orders to be made in relation to the specified property.
[40] Accordingly, I make an on-notice restraining order, pursuant to ss 21, 24 and 25 of the Act in the terms set out in the Commissioner’s application of 18 December 2023, in respect of the property detailed at [2(f)] and [2(g)] of that application.
Gwyn J
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