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Pyramid scheme leads to NZ’s largest ever forfeiture
A money laundering investigation linked to a multi-national pyramid scheme has led to New Zealand’s largest ever forfeiture under the Criminal Proceeds (Recovery) Act 2009.
The High Court has approved a settlement between Police and Xiaohua (known as Edward) Gong that enables the forfeiture of over $70 million.
Police first restrained the property in March 2017 following an investigation into suspicious funds deposited in New Zealand bank accounts between 2009 and 2016.
The funds were identified as being profits from the pyramid scheme based in China and Canada.
Detective Inspector Craig Hamilton says Gong is based in Canada and the money was transferred to New Zealand to conceal its source.
A fantastic result : Pyramid scheme investigation results in NZ record $70m forfeiture Newshub 7 hrs ago
An investigation into a multi-national pyramid scheme has led to New Zealand s largest-ever forfeiture.
It comes after the High Court approved a settlement between the New Zealand Police and Xiaohua (Edward) Gong, enabling the forfeiture of more than $70 million.
This figure includes a property in East Tamaki Heights and more than $68 million in cash.
It follows an investigation into suspicious funds deposited into New Zealand bank accounts between 2009 and 2016, which were identified as being profits from a China and Canada-based pyramid scheme.
Gong is based in Canada and the money was transferred to New Zealand to conceal its source.
• Source: 1 NEWS
Police have been forfeited more than $70 million consisting of cash and an Auckland property linked to multi-national pyramid scheme. Source: istock.com
He said the High Court had approved a settlement between police and businessman Edward Gong.
Hamilton explained police first restrained the money in March 2017 after an investigation into suspicious funds deposited into New Zealand bank accounts between 2009 and 2016.
The funds were profits from a pyramid scheme based in China and Canada.
Gong is based in Canada and the money was transferred to New Zealand to conceal its source, Hamilton said.
“This settlement is a fantastic result and we thank both the Chinese and Canadian authorities for their assistance in bringing this matter to a successful conclusion, Hamilton said.
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