Auckland money launderer Zhaobin Peng forfeits nearly $200,000 in cars, bank deposits and cash

By Ric Stevens, Open Justice reporter of

Methamphetamine, cash and a 2018 Audi R8 which had been parked outside Zhaobin Peng's apartment were seized when Operation Worthington wound up in 2021. Photo: Composite Photo / NZME

• Zhaobin Peng was arrested after Operation Worthington, which led to the seizure of 44kg of methamphetamine, $1m in cash, and the arrest of 21 people.
• He admitted 78 money-laundering charges and is serving three years and eight months in prison for those crimes and associated drug offences.
• Now he's had cars, cash and bank deposits confiscated.

A man who admitted 78 money-laundering charges after a major drug ring was busted has now had nearly $200,000 in cars, cash and bank deposits confiscated.

Zhaobin Peng is serving a prison term of three years and eight months for the money laundering, and four associated charges of possessing and supplying methamphetamine, cocaine and MDMA.

He was one of a score of people arrested after the police National Organised Crime Group wrapped up its Operation Worthington in Auckland in June 2021.

At the end of that operation, police seized more than 44kg of methamphetamine, half of which was hidden inside a bathtub, close to $1m in cash, eight properties and four vehicles.

The operation initially focused on a money-laundering syndicate of which Peng was a member.

Money laundering describes the methods criminals use to channel "dirty money" earned from crime - often in large bundles of cash - into the banking system so that it appears to come from a legitimate source.

The criminals sometimes engage the services of so-called "third-party" launderers like Peng, who are not involved in the original crimes that made the profits but act as contractors to clean the dirty money or transfer funds overseas.

Operation Worthington discovered that people involved with the ring importing and supplying drugs were in contact with Peng's syndicate, handing over large amounts of cash.

Money funnelled through multiple bank accounts

"Peng communicated directly with those seeking to launder the cash and was involved in arranging for others to collect the cash," said a recent High Court judgment from Justice Christine Gordon.

"Then ... Peng deposited the cash into the financial system through others, using a large number of bank accounts controlled by those other persons."

Peng also messaged other people about the supply, availability and price of controlled drugs, including commercial quantities of cocaine, MDMA, ephedrine and ketamine.

On one occasion, he was in possession of meth for supply himself.

When Operation Worthington ended on 23 June, 2021. Police raided 18 properties across Auckland and arrested 21 people, including Peng.

As part of the operation, and with help from Customs, a number of drug imports were intercepted, including a bathtub concealing more than 25kg of meth.

Two of the properties searched were apartments in central Auckland used by Peng and his partner, where officers seized $21,020 in cash.

They subsequently sought restraining orders over that money, deposits in two bank accounts in Peng's name and three cars - a 2013 Mercedes Benz ML station wagon, a 2013 Mazda CX-5, and a 2018 Audi A8 saloon.

The total amount of Peng's assets made subject to restraining orders came to $193,000.

The police gained the restraining orders under the Criminal Proceeds (Recovery) Act 2009, which is aimed at confiscating the assets people have gained through criminal activity.

Police will then usually seek to have such property forfeited to the Crown permanently by going to the High Court for a forfeiture order.

In Peng's case, he consented to the confiscation of the property without the need for a defended hearing.

Justice Gordon's judgment formally approved that negotiated settlement.

The judge said that Peng had admitted money laundering from August 2019.

All three of the confiscated cars were purchased between that date and the end of Operation Worthington less than two years later.

"Peng has been able to purchase three valuable cars and accumulate bank funds of nearly $80,000 despite a modest declared income," Justice Gordon said.

"The financial analysis shows unexplained cash deposits and transfers from third parties to Peng's bank accounts," she said.

$57,000 Audi registered in another name

The Audi was registered in another person's name, but police intercepted communications from Peng in June 2021 which said he had bought an Audi for $57,000.

The car was later seen by police parked outside one of Peng's apartments.

The registered owner confirmed to police that he did not own the vehicle.

Peng was named as the second respondent in the civil case which went after his assets.

The first respondent in the High Court action was the alleged ringleader of the money-laundering syndicate - a person who left New Zealand during the investigation and has not returned.

Another syndicate member, Lezhang Tang, has also pleaded guilty to money laundering and drug offences.

He was sentenced in July last year to three years and five months in prison.

* This story originally appeared in the New Zealand Herald.