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Crims rent to beat law
by Nick Perry, New Zealand Herald, 5 July 1999
Gangs and drug dealers are increasingly using rented
properties to avoid having houses seized under the Proceeds
of Crime Act.
Police have taken $11.6 million worth of cash, houses, boats
and motorcycles in the past eight years under the act.
They say it is hurting criminals, but admit the use of
rented properties for uses such as drug-selling "tinny
houses" has increased.
Detective Inspector Cam Ronald told the police magazine
Ten-One: "Gangs especially and people selling drugs in city
areas are using rented properties as they can't be forfeited
[under the act]."
He said criminals did not necessarily escape lightly, as
they faced heavy fines if it was proved they had made money
from their crimes.
Me Ronald said the act was being mainly used against drug
dealers, but it should be used to fight a much wider range
of serious crimes.
He said the act was one of the most effective tools the
police had.
"We know it's really hurting the criminals. They are
stripped of their assets, and it's very hard to come back
from time in prison and start building up those assets
again."
Disgraced former Hong Kong prosecutor Warwick Reid paid the
largest single penalty - $763,000 - imposed under the act.
He had assets worth $1 million seized after accepting a
bribe of the same amount from a Chinese man.
The largest overall seizure is $1.5 million worth of
property and assets taken from owners of a methamphetamine
laboratory last year.
Other big hauls include a $495,000 South Canterbury farm
last year, $325,000 in cash from morphine dealers in
Hamilton two years ago and $110,000 cash from drug dealers
in Tauranga.
Most of the money goes into the Government coffers, although
mortgages on seized properties are paid.
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