No payday for lawyers as police seize $360k fee

Total of $360,000 restrained after client jailed over $40m meth import.

[It’s] a lot of money by most people’s standards.

Police have restrained $360,000 in lawyers’ fees after a client was revealed to be apparent ringleader of a $40 million drug syndicate. The move is rare in legal circles, despite police having powers to restrain funds from law firms if money is thought to be dirty.

The Herald on Sunday was granted access to previously sealed court documents last week, revealing what assets the Crown restrained and seized after covert surveillance of the methamphetamine ring.

Operation Fireball — an investigation into Ka Kit Yim and his assets — followed Operation Coral by the Organised Crime Agency and customs after the discovery of nearly 40kg of crystal meth hidden in a Chinese shipment of granite tea trays in February last year.

The 40-year-old Hong Kong man, also known as Chris Yim, was arrested on March 2 last year while driving his Mercedes in East Tamaki.

Several raids were conducted on his property. A month later, police identified further assets that appeared tainted, leading to court orders for $360,000 in legal fees to be restrained.

The Herald on Sunday cannot name the lawyers and law firm or the context of the restraining orders, due to strict suppressions.

In August last year, Yim and his wife, Chien Hui Wu, who calls herself a currency trader, were allowed $2800 a month from their assets for living expenses.

Last July, in an affidavit supporting the living expenses application, Wu said the $360,000 being held with lawyers “had been set aside to pay for our legal costs”.

More than $167,500 was also restrained from two CMC Markets New Zealand Ltd trading accounts under Yim and Wu’s names.

In the affidavit Wu, who also goes by the name Tina Wu, said the funds in the accounts were used to invest and trade in foreign currency.

“This is how I derived my income and my means of supporting Chris and I,” she wrote. “Our financial position is creating extreme personal pressures for us as a family.”

Funds were also restrained from bank accounts.

According to Inland Revenue records, neither Yim nor Wu, who arrived in New Zealand in 1991 and 1994, have ever declared their income or paid any tax.

As part of the raids on Yim, police also seized 12 luxury sports cars valued at more than $1.3m, including a Ferrari worth more than $500,000 and a Lamborghini Gallardo. More than $1.8m in cash was seized and a further 1kg of meth found. Watches, jewellery, electronics, and 48 bottles of vintage French wine valued at about $42,000 were also seized.

Detective Senior Sergeant Tim Chao, the officer in charge of the police Northern Asset Recovery Unit, told the Herald on Sunday police would seek to restrain funds from lawyers and financial institutions if the money was believed to be dirty.

“Any kind of financial-type institution — whether it be a lawyer or anyone else who’s holding funds or property on behalf of another — we would look to restrain property from them.”

He said $360,000 was “a lot of money by most people’s standards”.

“Most of them [law firms] are aware of what can happen and what they should be doing.” Chao said.

Seized funds would go into a “ringfenced” hypothecated fund, he said.

“Five government agencies are able to apply to that fund for disbursement for items over and above normal expenditure to combat organised crime, drug and alcohol.”

Yim was sentenced this month to 111⁄ years’ jail for possession of a class 2 A drug for supply. Justice Geoffrey Venning said the drug ring imported the equivalent of 30kg of pure methamphetamine with a street value of $40m.