THE COMMISSIONER OF POLICE AND MATHEW PHILIP KARETU VELMA CLAUDETTE WESCHE Interested Party SHAVAUGHN KARETU Interested Party THE ESTATE OF PAUL ANTHONY KIWARA [deceased] Interested Party ANZ BANK LIMITED Interested...

[2024] NZHC 3022

IN THE HIGH COURT OF NEW ZEALAND NAPIER REGISTRY

I TE KŌTI MATUA O AOTEAROA AHURIRI ROHE

CIV-2024-441-000021

[2024] NZHC 3022

UNDER

the Criminal Proceeds (Recovery) Act 2009

IN THE MATTER OF

an application under ss 21, 24 and 25

BETWEEN

THE COMMISSIONER OF POLICE

Applicant

AND

MATHEW PHILIP KARETU

Respondent

VELMA CLAUDETTE WESCHE
First Interested Party

SHAVAUGHN KARETU

Second Interested Party

THE ESTATE OF PAUL ANTHONY

KIWARA [deceased] Third Interested Party

ANZ BANK LIMITED
Fourth Interested Party

RICHARD SNOWDEN HIRA

Fifth Interested Party

On the papers:
Counsel:	M Mitchell for Applicant J J Rhodes for Respondent
Judgment:	16 October 2024

JUDGMENT OF GRAU J

THE COMMISSIONER OF POLICE v KARETU [2024] NZHC 3022 [16 October 2024]

An application for an on-notice restraining order

[1]    Subsequent to the grant of a without notice restraining order on 11 March 2024,1 the Commissioner of Police (the Commissioner) applied on 15 March 2024 for an on-notice restraining order in relation to the following property:

(a)All interests in the property at 12 Burton Place, Flaxmere, Hastings registered in the name of the first interested party Velma Claudette Wesche and described under record of title unique identifier HBG2/1166, legal description Lot 49 Deposited Plan 14474, other than the registered interests of ANZ Bank Limited.

(b)All interests in the property at 918 Kiwi Street, Camberley, Hastings registered in the name of the first interested party Velma Claudette Weche (Infolog spelling) and described under record of title unique identifier HBE4/54, legal description Lot 62 Deposited Plan 11330.

(c)$68,100 in cash, along with any interest accrued, seized from a Louis Vuitton  Handbag  located  at   67   Ridge   Drive,   Omokoroa,   on  30 November 2023.

(d)$2,062 in cash, along with any interest accrued, seized from a television cabinet at 67 Ridge Drive, Omokoroa, on 30 November 2023.

(e)$2,000 in cash, along with any interest accrued, seized from a Mazda motor vehicle, registration QCN343, located at 67 Ridge Drive, Omokoroa, on 30 November 2023.

(f)The available credit balance of the ANZ Bank account number 01-0685-0210085-02, personalised in the name of Miss V C Wesche; plus interest.

1      Commissioner of Police v Karetu HC Napier CIV-2024-441-21, 11 March 2024 (Minute of Radich J).

(g)A silver 1970 Ford Falcon Saloon, including ignition keys, registration HDZ444, registered to Anthony Paul Kiwara (deceased) and Shavaughn Karetu.

(h)A black 2013 Chevrolet Camaro ZL1 Sports Car, including ignition keys, registration KUZ221, registered in the name of Anthony Paul Kiwara (deceased) and Shavaughn Karetu.

(i)A black 2016 Mazda BT-50, including ignition keys, registration QCN343, registered in the name of the first interested party.

(j)A 2019 Harley Davidson motorcycle, including ignition keys, registration B4UNQ, registered in the name of the fifth interested party.

[2]    By minute dated 14 June 2024, Gwyn J directed the Commissioner to file an affidavit of service and a brief memorandum setting out the legal and evidential basis on which the restraining order could be made, on receipt of which the Duty Judge would determine the application on the papers.2

[3]    At the time Gwyn J’s minute was issued, the respondent, Mathew Karetu, had taken no steps in the proceeding. Subsequently however, his counsel has confirmed that Mr Karetu was served with the Commissioner’s application in prison, but at that time, Mr Karetu was concerned with an upcoming bail application, so he did not appreciate the Commissioner’s application was separate to his criminal proceedings and he did not advise counsel. Mr Karetu’s counsel now confirms there is no opposition to the orders being sought. The first interested party has also confirmed she does not oppose the orders sought. Accordingly, I proceed to determine the application.

Background to the application

[4]    On 12 March 2024, Police executed search warrants at several addresses linked to Mr Karetu and his partner, Ms Wesche, the first interested party. Mr Karetu was

2      Commissioner of Police v Karetu HC Napier CIV-2024-441-021, 4 June 2024 (Minute of Gwyn J).

located and arrested several days later. He was charged with possession of methamphetamine for supply, supplying methamphetamine, participation in an organised criminal group, unlawful possession of a firearm, and failing to carry out obligations in relation to a computer.

[5]    Police seized slightly over $70,000 cash at an address rented by Mr Karetu and Ms Wesche. They also found a money counting device, a pistol, ammunition, cutting agent, multiple mobile phones, as well as more cash in a vehicle parked in the driveway. Police have also analysed encrypted messaging from Mr Karetu’s phones consistent with methamphetamine distribution, which  is  said  to  involve  at  least 11 kilograms with a purchase price of at least $1.54 million.

[6]    In addition, an analysis of Mr Karetu’s income, based on Inland Revenue records, indicates a minimal legitimate income since 2018, averaging around $6,000 per annum. Ms Wesche’s income averages around $10,500 per annum since 2017. It is alleged the couple have led a lifestyle that is inconsistent with this level of income, including receiving significant cash deposits into their bank account during this period, enjoying expensive holidays, carrying out extensive property renovations, and acquiring high-value vehicles.

Discussion and orders

[7]    On the basis of the affidavits of Julie Vernon, previously filed in support of the without notice and on-notice applications, I am satisfied there are reasonable grounds to believe the respondent and first interested party have unlawfully benefitted from significant criminal activity, namely the supply of methamphetamine, and they have an interest in the property sought for restraint, that interest being wholly, or in part, derived from the significant criminal activity.

[8] I grant the on-notice restraining order in respect of the property described above at [1].

[9]    The restraining order is  granted for a period of nine months, expiring on     16 July 2025.

Grau J

Solicitors:
Elvidge & Partners, Napier for Applicant