More than $1 million in gold and silver bullion has been confiscated from a Hamilton house after English bankruptcy trustees successfully sought a search and seizure order through the New Zealand courts -- a first for a foreign insolvency case on these shores.
The bullion was allegedly hidden from creditors of retired English psychiatrist Alan Geraint Simpson, 68, who was adjudged bankrupt by the High Court of England and Wales in September last year.
Mr Simpson, who has spent much of his time in New Zealand since at least 1993, lives in a two-storey Ann St home in Hamilton owned by two trustees of a family trust.
Steven John Williams was appointed as trustee of Mr Simpson's bankrupt estate in January. Acting through a New Zealand lawyer, he sought an order from the High Court at Hamilton for recognition of the English bankruptcy order as a foreign proceeding in New Zealand.
He alleged that Mr Simpson had about $US3 million ($NZ4.1 million) in gold and silver bullion stored in three safes at the house.
In correspondence with Mr Williams, Mr Simpson denied personally trading in silver or gold.
He did not respond to Mr Williams' inquiries about whether his family trust or a company linked to the Ann St house, Sennex Ltd, had traded in bullion.
Police and insolvency assignees on Monday spent several hours searching the property and loaded more than $1m worth of bullion into a security van and took it to a bank vault in Auckland, where it will be held ahead of a hearing to determine its ownership, set down for October 1.
The search and seizure order was made under the Insolvency Cross Border Act, which was introduced in 2006 for insolvency proceedings where a person bankrupted in another country has assets or debts in New Zealand.
It is the first time such an order has been granted under the Act. The order is considered as an interim relief, pending a hearing on October 1 to decide whether the English bankruptcy order can be recognised as a foreign proceeding in New Zealand.
In a written judgment released yesterday, Justice Paul Heath said Mr Simpson had limited means to support himself and accrue income.
However, Mr Williams provided evidence that Mr Simpson, through Sennex Ltd, had been a client of a firm dealing in currency and bullion for some time.
The evidence showed he had made "significant open contract dealings" after the start of the English insolvency proceedings, with the value of bullion linked to Mr Simpson and his associates estimated at more than $1 million.
Justice Heath said insolvency trustees had the power to seek search warrants under New Zealand law and, given there were reasonable grounds to believe the bullion could be at the Ann St property, a warrant could be issued under the cross-border law.
He suspended Mr Simpson's right to transfer or dispose of his assets, and summoned him to appear before the court and surrender any documents relating to his property, conduct or dealings.
Mr Simpson has worked as a psychiatrist in London and at a university in Hong Kong.
He receives a British pension of 1245 pounds ($NZ2650.54) a year and New Zealand superannuation payments of $15,408 a year.
The High Court in England last year ruled that he owed 242,920 pounds ($NZ517,600) to creditors, including interest and costs.
