Maroc - TIMBERBIZ.COM.AU - A La Une - Aujourd'hui 00:28

Auckland lawyer to pay penalties overseas forestry block investments

Auckland lawyer Andrew Jarvis has been ordered to pay NZ$275,000 in penalties for breaches of New Zealand’s Overseas Investment Act 2005. Source: Timberbiz The High Court penalty judgment follows an investigation by Toitū Te Whenua Land Information New Zealand (LINZ) into two overseas individuals who purchased forestry blocks in Gisborne and Rodney without overseas investment consent in 2011 and 2014. The overseas individuals set up company structures and used local associates to hide their ownership of the forestry blocks and have separately been ordered to pay almost NZ$1.7 million in penalties. During the investigation, LINZ (Land Information New Zealand) uncovered evidence that Mr Jarvis, acting for the investors, structured the transactions and gave legal advice that resulted in the investors acquiring interests in sensitive land without consent. Mr Jarvis admitted that his actions were reckless. “Lawyers and advisors play a crucial role in supporting our overseas investment regime by providing investors with the right in-formation and advice,” LINZ Acting Compliance Leader Pedro Morgan said. “Good legal advice helps the regime work effectively and supports New Zealanders and overseas investors to have confidence in it. “The vast majority of advisors help their clients to understand the law and make the right decisions, which is why it is so disappointing that in this case, overseas investors have been enabled to break the rules by a legal advisor.” The High Court said that Mr Jarvis ‘devised and implemented the structures that were used by their companies to avoid those requirements’ and that ‘his conduct was reckless because he facilitated the transactions without having carefully reviewed the restrictions imposed by the Act.’ “The penalties awarded in this case reflect the seriousness of the breaches and should send a warning to anyone seeking to under-mine the rules and also reinforce the need for investors to seek advice from lawyers who are familiar with the overseas investment rules,” Mr Morgan said. LINZ began an investigation into the forestry transactions following a report in 2020 by one of the investors. The investigation looked into eight forestry block sales in Gisborne and one in Rodney. In 2021 the investigation was widened to include Andrew Jarvis. Proceedings were filed in the High Court in respect of the overseas investors in April 2023 and in respect of Mr Jarvis in September 2024.