An Auckland restaurant owner has forfeited $141,000 the police allege he gained from criminal activity, even though he was never charged with an offence.

A High Court decision said Yanxian Liu gained the cash from money-lending, running mahjong gambling sessions and selling Chinese cigarettes illegally.

Police found $141,480 in Liu’s house in Favona, Auckland when they searched it on an unrelated matter in June 2021.

They also found and seized 14,000 Chinese cigarettes and 1.5kg of loose tobacco.

The cigarette packaging contained no health warnings, which are required for all cigarettes sold in New Zealand.

A check with Customs confirmed there was no record of Liu ever paying duty or GST on imported cigarettes or tobacco.

Police also found Liu’s phone, which contained images of people gambling with large sums of cash, and a “tick list” that appeared to show money owed to Liu by gamblers.

Liu’s activities were detailed in a High Court decision by Justice Ian Gault on an application by the Commissioner of Police to have the money forfeited to the Crown.

The Criminal Proceeds (Recovery) Act allows the forfeiture of money gained from significant criminal activity.

“The Commissioner’s case is that Mr Liu operates illegal mahjong gambling games, from which he earns money, and during which he sells uncustomed cigarettes and offers credit to gamblers,” Justice Gault said.

The decision said Liu had admitted to police that the cash was proceeds of mahjong gambling at a Chinese restaurant in Newmarket, of which he claimed to be a part-owner.

Police inquiries with the Department of Internal Affairs confirmed no record of a gambling licence being issued to any society or promoter of mahjong gambling in the Newmarket area.

The decision said that Liu had previously admitted to police he had been involved in “loan-sharking”.

“He is not, and there is no record that he has ever been, a registered financial services provider, nor has he declared any such earnings to Inland Revenue,” Justice Gault said.

However, the decision also said no charges were laid against Liu in relation to the search at his home.

Despite being given the opportunity to engage a lawyer, Liu had not opposed the forfeiture application.

When he met a detective at his home last month, he told him, “just take it”.

Justice Gault ordered the money be forfeited.