Four Auckland properties valued at approximately $36 million have been frozen following a two-year investigation linked to the death of a young man who unwittingly drank meth-laced beer.
This week, the Commissioner of Police initiated civil proceedings pursuant to the Criminal Proceeds (Recovery) Act against five people and one company connected to the Honey Bear methamphetamine laced beer manslaughter and drug importation investigation, also known as Operation Lavender.
The second phase of this operation, the civil asset recovery investigation, began after the death of Aiden Sagala in 2023.
Sagala, 21, had unknowingly consumed liquid methamphetamine, disguised as a can of Honey House Beer, and died on March 7, 2023.
He suffered from multiple organ failure with an "off the charts" level of methamphetamine in his system after he consumed the can given to him by Himatjit Singh Kahlon.
The pair knew each other through work.
Detective Inspector Chris Allan, of the Financial Crime Group, said the investigation subsequent to Sagala’s death led to the discovery of a clandestine laboratory and hundreds of kilos of stockpiled methamphetamine imports.
"Through extensive financial investigation and analysis our team has now restrained an estimated $36 million in real estate property alleged to be connected with the importation and supply of methamphetamine.
"These properties are a mix of residential and commercial rural properties across the Whitford, Totora Heights, Karaka and Bombay areas."
Freezing, or restraining, the properties prevents them being sold so the assets cannot be turned into cash.
Auckland City Police initiated Operation Lavender to investigate his death and the wider shipment of methamphetamine, which had been imported from Canada.
Ultimately, the investigation seized more than 700 kilograms of methamphetamine, the largest ever single seizure of methamphetamine in this country.
As a result of that investigation, two people were charged.
Himatjit Singh Kahlon, 42, was sentenced to 21 years' imprisonment for manslaughter and possession for supply of methamphetamine.
At his sentencing, Sagala's father Ma'aseia said he stood before the court as a "broken man whose life has been shattered".
He said his son was the "heart of the family" and "the pillar of our home".
"He was not only a devoted son, but also created the wellbeing of our family on his shoulders.
"He had dreams of entering the New Zealand Army at 22 years old, the dream was stolen from him and the pain of knowing he will never fulfil his dreams is a sorrow for us."
Another man, who has permanent name suppression, was sentenced to 22 years’ imprisonment for multiple drugs offences including possession for supply of methamphetamine and importing methamphetamine.
Allan said transnational organised crime groups were sophisticated business entities, not only for their criminal activities but also how they launder their funds.
"Police have been quietly focused on unpicking the financial activities of this group.
"Given the scale of this criminal enterprise, this proceeding is an indication of the determination New Zealand Police have to investigate, disrupt and dismantle organised crime.
Detective Inspector Allan said this was "a substantial restraint in terms of value but also work".
He acknowledged those from the Financial Crime Group, Auckland City District Police, National Clan Lab Response Team, NZ Customs, and the financial sector who spent time piecing this together.
"Police will investigate these instances and look to remove the unlawful benefits from those who engage in significant criminal activity."
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