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Home / Gisborne Herald

Jailed drug dealer faces more charges

Gisborne Herald
18 Mar, 2023 10:22 AMQuick Read

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A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.

A Gisborne drug dealer jailed for 10 years in 2018 is facing charges for continued drug offending from behind bars, court documents show.

Thomas Cheng, a Singaporean national, was a party last year to court proceedings in which the Commissioner for Police successfully applied for an extension to restraining orders over 15 properties and more than $10 million in numerous bank accounts relating to Cheng and his relatives overseas.

Cheng's alleged drug offending in prison was included in a judgement document of Justice Christine Grice's decision to further extend the restraining orders.

According to that document, Cheng was charged after an investigation codenamed Operation Dory, which terminated on May 9 last year.

This week he appeared in Wellington District Court on 26 charges alleging offending between April 2018 and May 2019, and said to have occurred in Auckland and Wellington.

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On five of them, he has pleaded not guilty and elected a jury trial.

Those charges are participating in an organised criminal group, possession of methamphetamine for supply, aggravated robbery, supplying methamphetamine, and importing methamphetamine.

The other 21 were newly filed this week. His court appearance was for the first time on these charges.

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He is not required to enter pleas to these until his second appearance.

The charges are five of importing or exporting meth, 13 of supplying it, one of being in possession of meth for supply, one of selling cannabis, and a further charge of aggravated robbery.

Cheng remains in custody and will appear again on all matters in the Wellington court on March 24.

There are two restraining orders over the properties and money associated with Cheng and his family.

Each of the orders was issued in 2016. Six of the buildings — landmark commercial properties in Gisborne — were restrained under the Criminal Proceeds Recovery Act shortly after Cheng's arrest in 2016.

The properties are 46 Gladstone Road (including 5 Lowe St), 67 Lowe Street (both relate to the Masonic Hotel building), 26 Lowe Street, 119 Grey Street and 110 Peel Street which, along with 105 Lowe Street, are leased as one property to the Ministry of Social Development.

They first came to the attention of police when Cheng boasted to an undercover officer involved in the 2015-2016 police drug operation Province (for which he subsequently received the 10-year prison term) that he owned 27 properties in New Zealand.

Properties linked to Cheng are subject to a complex web of ownership involving him, his Singapore-based father William Cheng (for whom he has power of attorney) and his stepmother Nyioh Chew Hong, as well as various companies in New Zealand and Singapore.

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Further properties were restrained under the second order when investigations led authorities to suspect Mr Cheng senior and Ms Hong of having unlawfully benefited from significant tax evasion, money laundering, and perhaps other criminal offending, the proceeds from which they might be concealing in New Zealand.

Lawyers for Mr Cheng snr and Ms Hong challenged last year's application to extend the restraining orders, saying the properties and funds were not tainted by or associated with any type of criminal activity and had been restrained for a long time — one for nearly three years, the other for three-and-a-half years — with no sight of any application for forfeiture.

The restraints were tantamount to seizure or deprivation of interest in a property. In those circumstances, an extension of the orders was unreasonable.

For the Commissioner, counsel Fiona Cleary said the restraints had not interfered with any tenancies, funds for which were still being gathered as usual.

Only the balance of funds existing in the bank accounts at the time the restraining orders were first imposed were the subject of them. Money paid in and out of the accounts since then was not the subject of restraint.

Justice Christine Grice granted the application on the grounds the investigation was complex and ongoing.

While out of the jurisdiction Mr Cheng snr and Ms Hong are not obliged to provide evidence but they could speed up the process by doing so, especially by supplying necessary documents, Justice Grice said.

The Commissioner's delay in applying for forfeitures was reasonable but those applications should be made as soon as possible, the judge said.

She extended the forfeiture orders for 12 months.

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