NZ police seize cars of disgraced former HK officer

A disgraced former Hong Kong policeman living off sickness benefits in New Zealand has been stripped of his three luxury cars despite being acquitted of money-laundering and drug charges after a court ruled that they were purchased with profits from drug dealing.

Police seized the vehicles of Paul Yu Hung-szeto, also known as Yu Hong-ho, when he was arrested on charges of money-laundering and dealing in methamphetamine in December 2008. Police alleged that Yu's wealth came from drug profits. Yu's defence was that it came from other sources, including gambling.

He was acquitted this year after a seven-week trial at Auckland's High Court, where his co-accused, multimillionaire businessman Max Beckham, was found guilty of serious drug and money-laundering charges.

The cars were to have been returned to him on his acquittal. However, last month police again seized Yu's 2005 Mercedes-Benz SLK convertible, 2003 Mercedes sedan and 2005 Porsche Cayenne, worth a total of NZ$250,000 (HK$1.66 million), under the new Criminal Proceeds (Recovery) Act 2009.

The law grants police the power to confiscate property without proving a crime occurred.

The evidential threshold is lowered from 'beyond reasonable doubt' to the 'balance of probabilities' and the onus is on defendants to prove how assets were paid for.

Yu did not contest the confiscation application and a High Court judge ordered that his three cars be forfeited to the police. New Zealand police did not comment on Yu's acquittal, but a source with knowledge of the court case and police investigation was more forthcoming.