Crown moves on Swann's assets

The next step in the recovery of money from convicted fraud Michael Swann is due to begin in about three weeks.

The Crown, under the Proceeds of Crimes Act, has applied for the forfeiture of Swann's assets, valued at about $7 million, and the "first call" in the High Court is scheduled for July 1.

In March, Swann was jailed for nine years and six months, with a minimum non-parole period of four years and six months, for defrauding the Otago District Health Board of almost $17 million.

If the Crown succeeds, the assets would become the property of the Crown and, it is understood, would be paid into the Consolidated Fund.

One of the lawyers acting for the health board, Sally McMillan, said yesterday the board's civil proceedings against Swann had been "stayed", pending the outcome of his criminal trial.

"ODHB is taking no current action to progress the civil proceedings pending the outcome of the Crown's proceeds of crime application."

Ms McMillan said the important thing for everybody was that as much of the money as possible was recovered.

"Whether that money is paid direct to the ODHB, or whether that's money that goes into the Consolidated Fund, at the end of the day it goes back to the taxpayer."

In April, Swann lodged a notice of appeal against the length of his sentence.

Invercargill barrister Hugo Law confirmed this week he was acting for Swann in that matter but not in relation to the Crown's proceeds-of-crimes action.

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