Police seize gold-seller’s home

Felon loses assets as Government takes harder line on proceeds of crime.

Police hunting a missing stash of gold worth $1.6 million have seized a second-hand dealer’s lifestyle block thought to be worth as much as $4m.

Rob Burgess was jailed in 2014 for melting down $250,000 worth of stolen jewellery through Rob’s Traders in Avondale.

But he then faced fresh court action by the Government targeting any earnings he couldn’t explain — particularly the $1.6m he was paid for 88kg of gold. It means the family home, sports car and motorcycles are now forfeit following a court process that saw Burgess fail to convince a judge he earned his money legitimately.

And the Herald on Sunday can reveal it is part of a harder line being employed by Government.

Minister Paula Bennett has asked police to almost double the amount seized using proceeds-of-crime legislation. But Burgess says the law is out of control.

In an exclusive interview, the 58-year-old said his life has been ruined after pleading guilty to one charge of receiving stolen goods then watching the police attack every bit of wealth he has earned.

“I lose my whole life. The Crown are not giving me one f***ing cent.

“I tell you, it leaves you in the darklands.”

His Auckland home is on the market and once sold, Burgess, his wife, two children and three grandchildren will have 42 days to get out.

“I don’t know if I’ve hit rock bottom or not. I thought once I’d been to jail that would be it. I’ve worked my whole life and I’ve got nothing to show for it.”

Burgess is not expecting sympathy after his conviction — district court judge Geoff Rea sentenced him to three years in prison after finding he caused grief to many people as an “active fence”, buying often irreplaceable stolen jewellery with a strong sentimental value.

But Burgess — who insists he never knowingly bought stolen goods — said a law intended to recover the proceeds of crime was inflicting punishment twice.

“Why was I put in prison? Wasn’t that my punishment?” As he was being sent to prison, he learned he would be targeted with the Criminal Proceeds Recovery Act. The 2009 law places the onus on people to prove they accrued assets through legitimate means or face forfeiting the property to the Crown.

Burgess reckoned the house was worth $3m-$4m, which will go to the Government because the court order targeting assets includes not only the value of the asset when it was bought but any profit made on it.

“They’re just taking everything from you and leave you with nothing. The New Zealand public need to know all of this. It’s going on all the time.”

Burgess’ lawyer, Shane Kilian, said the law was “one of the most draconian pieces of legislation in New Zealand”.

He said it had turned a law designed to stop people from profiting from crime into a regime forcing people to prove the source of any property or face losing it.

A spokeswoman for police minister Paula Bennett said police had been asked to increase their recovery target of $230m over the next four years to $400m.

“We want to send a strong message to criminals that we won’t tolerate them profiting by victimising other people, whether that’s by selling drugs, burglary of theft.”

In seven years — until March 2016 — the scheme saw police seize 110 homes worth $34.5m, cash and bank deposits worth $27m, four farms or orchards worth $7.6m, 234 cars and 97 motorcycles worth $5.6m, a dozen lifestyle blocks valued at $3.9m and eight commercial businesses worth $4.3m. The money is put back into law enforcement.