Swann motor vessel may soon be sold

More than two years after it went on the market, one of convicted fraud Michael Swann's assets may soon be sold.

In the High Court at Dunedin, Justice Hugh Williams yesterday agreed to the sale of the steel motorboat Townsend Cromwell, one of many assets confiscated by the Solicitor-general under the Proceeds of Crime Act to try to recover the $16.9 million Swann and an associate stole from the Otago District Health Board.

The vessel has remained moored at the Birch Wharf, at Dunedin's Steamer Basin, since it was seized in October 2006.

Marie Grills, who appeared for the Crown, said the boat had proved "a somewhat difficult asset to sell", but an offer had been received from an overseas buyer who wanted to use it to transport a harvest.

She sought permission for the sale to be finalised as soon as possible, with sale proceeds to be held until the Proceeds of Crime case was finalised.

Len Andersen, who represents Swann's estranged wife Anna Devereux, said his client did not object to the concept of a sale, but would be interested to know what the appraised value of the vessel was, and the amount of the offer.

Ms Grills did not reveal those figures.

Counsel Sally McMillan, appearing for the ODHB, and Jon Beck, appearing for Swann, said their clients did not object to the sale.

Justice Williams asked Ms Grills if the boat had been "restrained", under the Proceeds of Crimes Act, or "arrested" under admiralty regulations.

The boat had been restrained, she replied.

Justice Williams said admiralty rules allowed the boat to be sold without any parties with an interest in the sale being able to complain about the sale price.

He adjourned the court so he could read Ms Grill's application, and so counsel could discuss whether they would agree to the sale.

After the judge left the room, Ms Grills, Mr Andersen and Ms McMillan began an intense discussion about the possible value of the boat.

Ms Grills urged Mr Andersen and his client to accept the offer, saying if it could not be sold, "no-one would get anything".

It was costing $3000 a month for mooring, electricity and security charges, she said, and if not sold, would end up as "a rust bucket in the [Otago] harbour".

Ms McMillan said the extensive modifications Swann carried out on the boat to suit his needs made it a "dog" as far as resale went.

Mr Andersen said his client would agree to the sale, provided Ms Grills would confirm the Crown would try to get the best price possible.

Ms Grills said that was what the Crown had been trying to do since the vessel went on the market.

The lawyers signed a consent memorandum which was given to Justice Williams later in the morning.

How much is the Townsend Cromwell worth? Swann's lawyer at sentencing, John Haig QC, said it was valued at about $800,000, although Swann had estimated as much as $4 million was spent on the refurbishment.

However, the Otago Daily Times has learned from other sources the vessel's value is seriously affected by it not being surveyed for commercial use, and its value for scrap would be about $50,000.

Parties to application Parties to the Swann proceeds of crime application

1. Michael Swann.

2. Otago District Health Board (former employer).

3. Anna Devereux (estranged wife).

4. PB Ibbotson & Checketts McKay Trustees Ltd (trust Crown contends was set up to administer property purchased by Swann).

5. Organic White Meats Ltd (company which says it is owed money by Swann for goods or services provided).

6. PB Ibbotson and others (property trust).

7. AL Devereux and others (property trust).

8. Liberty Publishing Ltd (may be owed money).

9. Fresh Free Range Chickens Ltd (may be owed money).

10. Bruce McIlroy Ltd (may be owed money).

11. L King and others (may be owed money).

12. D Gearing (may be owed money).

13. PB Ibbotson (may be owed money).

14. Careys Bay Marine Ltd (may be owed money).

MV Townsend Cromwell

- Length: 50m.
- Beam: 10m.
- Built: California.
- Launched: 1963.
- Powered by: two 400hp engines.
- Maximum speed: 9 knots.
- Former use: research vessel operating out of Hawaii.
- Refitted: 2006.
- Accommodation: 17 cabins sleeping up to 31 people.
- Other facilities: lounge, galley, laundry, bathrooms, toilets.
Extras: commercial dishwasher, ice-making machine, washing machines, clothes dryer, freezer unit, LCD TVs and DVDs in every cabin, handbasins in every cabin, king-sized bed in main cabin, air-conditioning system, central heating system, sewage system, on-board navigational system, satellite phone/data system.