Auckland businessman Ron Salter will pay $4 million to settle a “proceeds of crime” case following the workplace death of Jamie Bowring

The tank was labeled as containing diesel fuel – a low-hazard substance – but in fact it contained a dangerous mixture of waste fuel.

The fumes are highly flammable, but Bowring was never warned of the potential danger and should not have been allowed to do any “hot work” near the tank.

In a subsequent investigation by WorkSafe New Zealand, Salter was prosecuted for breaching health and safety regulations and for flagrantly failing to comply with laws governing the safe storage and handling of hazardous substances.

In addition to being incorrectly labeled as low-risk hazardous, the tank should also have had a “fixed container system test certificate.” Salter was warned about the need for certification twice, in 2011 and 2015, but did not apply for approval.

The certificate would not be issued because the tank did not meet legal requirements for ventilation, mounting and earthing. At the time of the fatal incident, none of the tanks at Salters Carthage were certified.

WorkSafe’s investigation led to the issuance of a “prohibition notice” banning the company from operating the recycled oil plant from September 2015 to March 2016. Despite this, WorkSafe argued that Salters Cartage Ltd began operating the plant in early February 2016.

The inspections identified “potential ignition sources” in risk areas.

Salter pleaded guilty to WorkSafe charges and was sentenced to four-and-a-half months house arrest in October 2017. The company and Salter also paid fines and restitution of nearly $400,000.

But Salter’s legal troubles didn’t end there.

Two years later, in a surprise move, the Supreme Court ordered police to restrict the Salters family home in Auckland, their holiday home on Waiheke Island, another property in Paerata, and the Salters Cartage business premises in Wiri.

The assets were frozen under the Crime Proceeds Recovery Act (CPRA). The law allows a judge to issue restraining orders if there are reasonable grounds to believe the owner has benefited from “substantial criminal activity.”

The law is most often used to confiscate the ill-gotten wealth of drug traffickers, gang members and money launderers.

The move, which various judges described as “new” and unusual, marked the first time police had used the proceeds of crime law against a commercial business.

Although Salters Cartage was a legitimate business, the police case was that Ron Salter knew the laws regarding the handling of hazardous substances and ignored them.

This meant the business was being run illegally, police alleged, and Salter benefited nearly $11 million.

Salter has vigorously opposed the police case for five years and a trial scheduled to last seven weeks began in the High Court in Auckland last week.

However, after police lawyers made opening statements on Monday, the hearing was adjourned to allow negotiations to take place behind closed doors.

Under the Proceeds of Crime Recovery Act, the settlement must be approved by a judge.

The parties appeared again in the High Court in Auckland this morning, where Judge Matthew Downes reviewed the history of the case before approving a settlement that will see Ron Salter and Salters Cartage Ltd pay $4 million.

Judge Downs said the company, Ron Salter and his wife deny all offenses beyond those already recorded in their convictions under health and safety and hazardous substances legislation.

They argued that the police were investigating a test case and sought to extend the scope of the Proceeds of Crime Act beyond the situations provided for by Parliament, and denied benefiting from criminal activity.

Judge Downs said the Police Commissioner accepted he would face difficulties in proving Ms Salter had “knowledge of serious criminal activity” and noted she had a property interest in the property.

But according to the settlement, Ron Salter and the company admit that they benefited from violating the hazardous substances law, to which they had already pleaded guilty. They also admitted breaching a health and safety notice in 2015, Judge Downs said.

A High Court judge approved $4 million in damages, released the police commissioner from any liability to pay damages and ordered each party to bear its own legal costs.

“This is broadly equivalent to the property which the Commissioner considered would have been available to satisfy a profit forfeiture order had the Commissioner’s case been successful against Mr Salter alone,” Judge Downs said.

Ron Salter declined to be interviewed after the hearing. But in a written statement published in HeraldSalter said he was pleased to have settled the forfeiture case “after almost five years of fighting and significant cost to SCL (Salters Cartage Ltd) and my family.”

“While SCL would have liked to see the commissioner’s case through to see whether cases like this are what the CPRA is intended to address, these proceedings have already taken quite a long time and cost us significant money,” Salter said.

“So we made the difficult business decision to cut our losses and be able to move forward.”

Salter said he recognizes the tragic death of Jamie Bowring and his company’s role in failing to prevent the fatal crash.

“This will not be forgotten and will continue to force us to remain focused every day to avoid a repeat of the situation. But as a company operating in a competitive industry, SCL must also be able to move forward and seize new opportunities, so the resolution of this proceeding will enable it to do so.”

Jared Savage covers issues of crime and justice, with a special focus on organized crime. He joined the Herald in 2006 and has since won a dozen journalism awards, including being named Reporter of the Year twice. He is also the author banditry And Gangster’s paradise.

George Block is an Auckland-based reporter specializing in police, courts, prisons and defense. He joined the Herald in 2022 and previously worked at Stuff in Auckland and the Otago Daily Times in Dunedin.