Eight bank accounts containing $10,377,300 are the subject of a restraining order. (File photo)

An investigation into the assets of a meth dealer has resulted in police seizing more than $10 million and eight properties belonging to his father.

Singaporean national and Gisborne resident Thomas Cheng was sentenced to 10 years in jail last year after pleading guilty to charges of importing and supplying methamphetamine in 2016.

A restraining order was placed over six commercial properties in Gisborne and bank accounts connected to Cheng.

STUFF The application was opposed by the Chengs and Hong and a hearing was held in the High Court at Gisborne over two days in September and October.

Subsequent investigations by the Commissioner of Police saw restraining orders also placed on nine properties and eight bank accounts containing $10,377,300 in the name of Cheng's father William, who lives in Singapore.

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The properties are subject to a complex web of ownership involving Cheng, his father, and his stepmother Nyioh Hong, as well as various companies in New Zealand and Singapore.

The investigators discovered that William Cheng had a tax number but had not filed anything with IRD, and that he had other bank accounts (aside from those that were restrained) containing more than $10m with no declaration regarding interest earned.

None of the corporate owners and mortgagees on the properties had filed income tax or GST returns with IRD, and William Cheng and Hong had provided false information to the Companies Office in a bid to falsely convince the office they were New Zealand residents. They have, in fact, been unable to satisfy Immigration New Zealand of the origin of the $10m, so have not been granted residency.

The Commissioner believed William Cheng and Hong had unlawfully benefited from significant tax evasion and money laundering and in 2017 the Commissioner obtained the order over the properties as he believed William Cheng had been involved in criminal offending yet to be identified and that he was concealing the proceeds of that offending in New Zealand.

The Commissioner also said that financial analysis had shown substantial income going into the Chengs' accounts and that he would seek assistance from Singaporean law enforcement agencies in relation to this.

The restraining orders over the six properties connected to Thomas Cheng and the nine properties and bank accounts connected to his father were to expire in May this year.

The Commissioner applied to the High Court to extend the orders. The application was opposed by the Chengs and Hong and a hearing was held in the High Court at Gisborne over two days in September and October.

The Chengs and Hong said there was insufficient evidence underpinning the orders and the delay was prejudicial because it meant they could not deal with their own properties.

"The major cause of delay is because the Commissioner has not been more efficient in his pursuit of the information required to make his application for forfeiture. The delays have not been caused or contributed to by the respondents," they said.

The Commissioner said disclosure from Hong Kong authorities was received in September but disclosure from Singapore had yet to be provided.

In a recent decision Justice Christine Grice said the Commissioner's explanation for the delay was reasonable.

"Money laundering is usually complex, particularly where it involves multiple foreign entities and is difficult to detect and to investigate," she said.

She noted that William Cheng and Hong were not obliged to provide evidence while they were outside New Zealand but "they could speed up the process by supplying the information".

Justice Grice said given the complex structures, offshore involvement and difficulties in investigating, an extension of the orders was justified.

She extended the orders for 12 further months, but noted that the Commissioner "should bring an application for forfeiture as soon as possible".