$4m profits seized as proceeds of crime following Health and Safety breaches…

The implications of significant breaches of the Health and Safety legislation just got a lot more serious following a High Court decision upholding the application to seize profits arising following convictions for H&S breaches.

An employer and its director were convicted of Health and Safety breaches following the death of an employee in an explosion at work.

The Police applied for forfeiture of over $10million in profits under the Criminal Proceeds (Recovery) Act against the company and its husband-and-wife directors.

The High Court approved a settlement of the claim for forfeiture of $4million being the amount that would have been able to be recovered against the husband only.  The profits arose from the criminal activity under the Hazardous Substances Act and breach a prohibition order on the operation of part of the business.  Those convictions brought the criminal proceeds recovery legislation into play.

The defendants have been given six months to sell properties to pay the $4million order. If the debt is unpaid the government can seize and sell the properties to recover the debt.

This is the first time that the criminal proceeds legislation has been used in the Health & Safety area.  Normally it has been used for criminal behaviour involving drugs, money laundering or similar.

The placing of properties in trusts was also no protection against forfeiture as the proceeds of crime can be followed and seized despite no longer being owned or under the control of the person convicted.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.