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Home / Business

Business Insider: A tale of two sons' brushes with the law

NZ Herald
11 Dec, 2015 04:00 PM5 mins to read

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Sir Ronald Davison was Chief Justice from 1978 to 1989 and later headed a government inquiry into overseas company taxation - more popularly known as the Winebox Inquiry. Photo / Herald staff

Sir Ronald Davison was Chief Justice from 1978 to 1989 and later headed a government inquiry into overseas company taxation - more popularly known as the Winebox Inquiry. Photo / Herald staff

One son of a Chief Justice is following in his father’s footsteps; another has been in the news for a less welcome reason.

Two lawyers and sons of former Chief Justices have caught Business Insider's eye - one for being named the newest member of the bench, the other for receiving a lashing from the bar.

Queen's Counsel Paul Davison - son of the late Sir Ronald Davison and former lawyer for Kim Dotcom - was this week named a High Court judge.

Sir Ronald was Chief Justice from 1978 to 1989 and later headed a government inquiry into overseas company taxation - more popularly known as the Winebox Inquiry.

He also was named as the Herald New Zealander of the Year in 1985 for jailing two captured Rainbow Warrior bombers for 10 years.

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Son Paul joins the bench after a 40-year career in law that includes appearing before Royal Commissions of Inquiry into the Mt Erebus disaster and the prosecution of Arthur Allan Thomas.

Sitting in Auckland, Davison may well encounter well-known barrister John Revans Eichelbaum, whose censure by the profession's disciplinary tribunal was recently upheld by the High Court.

Queen's Counsel Paul Davison - son of the late Sir Ronald Davison and former lawyer for Kim Dotcom - was this week named a High Court judge. Photo / Sarah Ivey
Queen's Counsel Paul Davison - son of the late Sir Ronald Davison and former lawyer for Kim Dotcom - was this week named a High Court judge. Photo / Sarah Ivey

The tribunal earlier found Eichelbaum - son of former Chief Justice Sir Thomas Eichelbaum - guilty of two charges of misconduct and one charge of unsatisfactory conduct.

The unsatisfactory conduct finding, according to the Law Society, came from Eichelbaum's improper use of the statutory demand procedure to seek $150,000 for work done for a client.

"One finding of misconduct was for sending the solicitors for the client a draft affidavit containing offensive and scurrilous remarks against the client. The Tribunal found that this amounted to an implicit and improper threat that, if not paid, Mr Eichelbaum would commence proceedings for his fees and attach the affidavit in support," the Law Society said earlier this month.

Cloudy judgment

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It's a cliche, of course, but it happens to be true: Russians love their vodka.

When their Government slapped on higher taxes to reduce a level of alcoholism which it damned as a "national calamity," it had little effect: Russian drinkers responded by turning to cheaper, illegal product.

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Both President Vladimir Putin and Prime Minister Dmitry Medvedev have had vodka brands named after themselves: Putinka and Medvedeff.

Dmitry Medvedev is partial to a Kiwi drop. Photo / AP
Dmitry Medvedev is partial to a Kiwi drop. Photo / AP

But their own relationship with the national drink is more complex.

Putin is said to prefer German beer - a taste that dates back to a stint in Dresden as a KGB spy.

As for Medvedev, his tipple is more sophisticated.

Prime Minister John Key - who caught up with him recently - asked him what he drank in a country where temperatures can plunge to minus 60 in winter in some parts.

Replied Medvedev: Cloudy Bay.

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The Kiwi drop seems a fitting choice for the politician.

After all, Medvedev has suggested developing Russia's domestic wine industry as a way of eradicating alcoholism.

Tainted claim

Police believed a $891,000 Auckland house linked to a former BNZ banker was "tainted property" and allege someone associated with it has unlawfully benefited from significant criminal activity.

The High Court has frozen the proceeds of the sale of the house at Calcite Ave in a new Flat Bush development. It is now anticipated police will try have these funds forfeited to the Government's coffers.

The Flat Bush house, which has attracted police interest. Photo / Supplied
The Flat Bush house, which has attracted police interest. Photo / Supplied

Authorities have been particularly tight-lipped about the case, which alleges former BNZ banker Ryan Weir and another man, Scott Alan McRobie, have an interest in the frozen property.

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This week, however, Business Insider was given access to a handful of documents which put a bit of fat on the bones of the police case.

"There are reasonable grounds to believe that the property is tainted property," Manukau Crown Solicitor Natalie Walker said in the original application to freeze the house.

"There are reasonable grounds to believe that the property is the property of one or more of the respondents and one or more of the respondents has/have unlawfully benefited from significant criminal activity," she said.

The respondents in the case are Weir, McRobie - who had name suppression until yesterday - and the company which formerly owned the now-sold Flat Bush house.

The "significant criminal activity" alleged is obtaining by deception, a crime that, if proven, carries a maximum penalty of three years' jail.

For his part, Weir has denied that the property is "tainted" and says he has not unlawfully benefited from any alleged criminal activity.

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While police have shed little light on the case, Weir said last month that he has left his job and the BNZ went to police over a transaction he was involved in while there.

"The bank's concern was that I should have disclosed that I had an involvement with the transaction and I did not. I accept that," he said in a statement.

Weir said the proceedings were "misconceived".

"My conduct was not criminal. I have never been charged, or even interviewed by the New Zealand police," he said.

Weir said the bank was never financially exposed and that, in fact, it profited from the transaction.

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