Swann asset sales yield $1.2m

The Government has so far recovered $1.2 million of the $15.1 million Michael Swann stole from the Otago District Health Board.

The money has come from the sale of 37 assets Swann, then health board IT manager, bought with the money taken from the board through fraudulent invoicing between 2000 and 2006.

He was convicted of fraud and is serving a prison sentence of nine and a-half years.

Items sold so far by the Official Assignee include 22 motor vehicles and eight boats. Just under $1.2 million has been received for assets valued at $1.7 million.

Five properties, with a total value of $2.4 million and including one in Wanaka, the sale of which is yet to be settled, are among eight other restrained assets yet to be sold.

An Official Assignee spokeswoman said two of those properties - 22 Ferntree Dr in Dunedin and 6 and 8 Macandrew Rd in Careys Bay, Dunedin - were being rented while some "complicating factors" were sorted out. Once that happened they would be put on the market.

A further six items - three cars (a 1960 Mercedes Benz 190 SL, a 1993 Mercedes Benz E320 Cabriolet and a 1974 V12 E-Type Jaguar) and three trailers - have yet to be found.

Since 2006, a total of about $3.5 million worth of Swann's property has been forfeited to the Crown under the Proceeds of Crimes Act 1991.

A 2010 High Court order made remaining known Swann property (about $700,000 worth) available to satisfy a pecuniary penalty order of $6 million.

Swann must repay the Government about $9.5 million, with proceeds from the sale of about $4.1 million worth of already restrained assets going towards that.

Other assets identified in the future as being tainted would also be restrained.

The Official Assignee spokeswoman said the assignee was responsible for holding and disposing of the proceeds of crime, but the Crown was responsible for recovering those assets.

At Swann's trial the court heard he bought almost $8 million worth of cars and boats and $3.6 million of real estate.

The Crown has said it will continue to seek the rest of the property, as it will continue to seek the remainder of the $6 million penalty order against Swann. But it will largely rely on public help to identify Swann property.

Crown solicitor Marie Grills last year said many of the assets so far identified had been found with the help of the public. Any information could provide the missing link needed to find more.

When Swann is released from jail - he will be eligible for parole in May 2013 - he will be able to work and own property, but the Crown will investigate any evidence of him owning significant assets.

The debt would be owed to the Crown forever, or until it decided to stop pursuing it.

- debbie.porteous@odt.co.nz

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