to freeze the assets of Gibson and Connell, without notice, on June 22<\/a>.<\/p>\nEgypt\u2019s Sawaris family control Gemini Group, which claims it was misled about Voltaire\u2019s ownership and control, and that Connell and Gibson helped conceal Watson\u2019s involvement and extract funds from the business. <\/p>\n
Application to discharge <\/p>\n
Justice Sally Fitzgerald heard an application from Connell to discharge the freezing and ancillary orders, in the High Court at Auckland on Oct 27. <\/p>\n
The New Zealand court had required Gibson and Connell to disclose their assets and transactions, but Justice Fitzgerald later suspended Gibson\u2019s disclosure obligations after he challenged the orders. <\/p>\n
Lawyer Ben Molloy said Connell\u2019s position differs from Gibson\u2019s, who was once described as Watson\u2019s \u201cright-hand man\u201d, while Connell is a peripheral figure. <\/p>\n
He read out an affidavit from Connell to explain why he chose not to defend the England proceedings. <\/p>\n
\u201cFirst I did not have the funds to defend the proceedings, second I believe the allegations are unfounded … ,\u201d Molloy said, quoting Connell. <\/p>\n
\u201cHis views are it\u2019s unlikely to proceed, and he\u2019d rather not get involved.\u201d <\/p>\n
Molloy argued there was no evidence of a risk of assets being dissipated, and Connell\u2019s evidence was that a house sold following the orders had been on the market since 2017. <\/p>\n
\u201cThis is an $8.6m property … it\u2019s not an easy property to sell.\u201d <\/p>\n
The sale proceeds went to pay off loans and fund two property purchases, Molloy said, including $2.8m to ASB, $2.3m for a residential property purchase, and $350,000 to purchase a commercial building. <\/p>\n
\u201cIt doesn\u2019t reek of nefarious intent to dissipate assets; these are two new property assets.\u201d <\/p>\n
Connell also provided evidence of the trusts he is involved in, and Molloy said the trusts\u2019 assets have been identified. <\/p>\n
\u2018Directly involved\u2019<\/p>\n
Jenny Cooper, KC, argued for the continuation of freezing orders and made an application for further ancillary disclosure orders on behalf of the applicants. <\/p>\n
Cooper described tedious attempts to serve Connell with court orders, including that he allegedly got in his car and exited his driveway to avoid receiving them. <\/p>\n
\u201cIt\u2019s clear that Mr Connell had noticed that attempts were being made to serve him, and that he had documents, if he read them, that made it very clear there was a freezing order against him. \u201d<\/p>\n
Cooper said that despite this, Connell acknowledged in his affidavit the sale of Hart Dairy shares by three trusts in July 2026, nine days after the box of documents was delivered to him. <\/p>\n
Cooper said further ancillary disclosure orders were being sought to protect the applicants\u2019 interests from dissipation.<\/p>\n
\u201cMr Connell has acknowledged in the past he has been a friend and a business associate with Mr Watson,\u201d Cooper said. <\/p>\n
Cooper said there was an inference that Connell was to be remunerated, and that he had referred to a gentleman\u2019s agreement with Watson to receive 5% if the FX company was sold. <\/p>\n
\u201cHe wasn\u2019t simply appointed as director and shareholder; he was directly involved.\u201d <\/p>\n
Justice Fitzgerald asked counsel to address why the freezing orders shouldn\u2019t be amended to mirror the English orders as they have been altered there. <\/p>\n
Cooper noted Connell has already been barred from defending the proceedings in England because he failed to comply or engage. <\/p>\n
\u201cTherefore, in my submission, there\u2019s a stronger basis for the applicants to seek wider orders in New Zealand … because of Mr Connell\u2019s failure to engage with the English proceedings. <\/p>\n
\u201cThey\u2019re entitled to seek further orders; it\u2019s understandable that their view of the risks had changed … and they would want further orders to safeguard their position. <\/p>\n
The decision has been reserved. <\/p>\n
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