Jailed paua smugglers linked to crime ring

An Auckland couple at the centre of a blackmarket paua-smuggling racket are believed to be part of an international crime syndicate.

China-born Zhang Yuan Da, 43, and his wife, Zhong Hui Hong, 44, of Mt Albert, were among five people - all beneficiaries - jailed yesterday for their part in a smuggling chain moving paua and rock lobster to Hong Kong and southern China.

The couple, using false names, posted processed paua worth up to $1.1 million through the mail after curing the shellfish to remove its smell.

The cost of postage alone was $76,000.

Ministry of Fisheries officers took the operation extremely seriously, not only because of the illegal stripping of New Zealand's fisheries stocks, but also because of the large-scale health risk to people eating paua soaked in chemicals in a backyard facility.

The ministry said last night that it considered Zhang and Zhong the most serious offenders yet caught in a crackdown on paua smuggling in two operations, which were codenamed Pacman andBond.

The ministry said it believed "the pair are part of an organised criminal group, with national and international links".

In Operation Pacman, a fisheries officer went undercover to track smugglers who were taking thousands of kilograms of paua out of the country in suitcases on flights from Auckland International Airport.

The smugglers paid thousands of dollars in excess baggage charges to transport the seafood, wrapped in rubbish bags.

On one occasion, they paid $7376.80 for 233kg of excess baggage.

Operation Bond investigated the posted paua.

The ministry claims Zhang and Zhong mailed 5.5 tonnes of processed paua meat - produced from around 80,000 paua - to Hong Kong. From there, it was probably shipped to southern China.

The couple bought the paua from divers or middlemen, cured the meat with chemicals to preserve it and reduce the smell, then posted it in packages of around 18kg from post offices around Auckland, using false names.

The ministry operation was codenamed Bond after a postal form used by the black marketers. It bore the code 007, the number of fictional spy James Bond's licence to kill.

At a sentencing in the Auckland District Court yesterday, ministry officials described the smuggling operations as the worst offending of its kind they had encountered.

Zhang and Zhong, both beneficiaries since arriving in New Zealand 11 years ago, pleaded guilty to one joint charge relating to Operation Bond.

Zhang, described by Judge Josephine Bouchier as the most significant offender of the five, was sentenced to four years in jail.

He was on district court bail for charges from Operation Pacman when he was arrested in Operation Bond.

Judge Bouchier said Zhong, who received an unemployment benefit and an accommodation supplement, was a vital part of the operation.

She was jailed for two years and given leave to apply for home detention.

She had huge amounts of money deposited in her bank account from Hong Kong and China. Investigators found $880,000 had recently been deposited in her account and $550,000 withdrawn.

She said it belonged to her mother, but she had power of attorney.

Officers found that her mother, who was in New Zealand for two years until February, got a benefit after declaring she had no assets or income here or overseas.

Zhang and Zhong, married for 18 years, have two daughters.

Zhang shook hands with his wife and waved to the four remaining defendants as he was led away.

He also pleaded guilty to further Operation Pacman charges with Ku Chao Hsiung, 40, a chef of Pakuranga, his sister Ku Min Ying, 34, of Remuera and Thai-born Kaewta Manee, 32, who claims to be Mr Ku's partner.

Mr Ku, facing three charges, was sentenced to three years' imprisonment; his sister, facing two charges, was sentenced to two years' with leave to apply for home detention; and Kaewta Manee, facing one Operation Pacman charge, was sentenced to one year with leave to apply for home detention.

Vans, cars, cash, cellphones and refrigerators belonging to the five were forfeited to the Crown.

After the 2 1/2 hour sentencing, the Ministry of Fisheries manager of compliance operations for the North Island, Shaun Driscoll, said he was happy with the sentences, which sent a strong message.

But the blackmarket had not been eliminated.

"We won't delude ourselves about that. We made a significant breakthrough. We need to stay vigilant and we will."

Operation Bond netted 5.5 tonnes of processed paua and Pacman 1093kg of rock lobster, 187kg of rock lobster tails and 1293kg of paua, but the extent of the illegal trade is many times that.

In a statement to the court, the ministry described the impact of the fisheries blackmarket on New Zealand as "immense".

Herald feature: Environment