How Drug Dealers Spend their Cash in New Zealand

A police officer's daughter who was in bed with a drug dealer has admitted using dirty money to fund a lavish lifestyle.

Jessica Kalivati, 28, was arrested as part of Operation Abbey, a lucrative methamphetamine dealing and money laundering operation based in the sleepy Horowhenua town of Shannon. 

Kalivati was in a four-year relationship with Gary O'Connell, 43, a high school drop out who ran the ring from his home, earning more than $4 million in five years.

She knew he was a drug dealer and helped him conceal $236,782.

In the Palmerston North District Court on Wednesday, Kalivati pleaded guilty to charges of money laundering. Other drug-related charges were dropped. 

O’Connell was sentenced last month to nine years' jail for his involvement and three others – Emma Jane Armstrong, Stephen Heta Puhipuhi and Alice Irene Andrews – were also sentenced on drug-related charges.

The court heard Kalivati used several methods to spend the money, such as using cash to pay for expensive holidays, vehicles and property. 

Between 2015 and 2017, Kalivati paid for $34,882 of travel through Flight Centre and House of Travel.

She paid a $3500 deposit into the bank account of the seller of a $75,000 Dodge Challenger bought by O'Connell and was present when he paid $19,982 cash for life ski passes to the Tūroa ski field for the pair.

She went on a holiday to Queenstown with him and 19 other associates in July 2019.

She paid for meals on two nights, totalling $1857 and $1565, respectively, and organised accommodation worth $15,448.

In 2019, Kalivati gifted her sister $5000. She also spent $14,041 through her Trade Me account to buy concert tickets, vehicle accessories and appliances.

A Streamline Caravan was registered in her name. It was then modified to be used as a mobile coffee cart, branded as her business, Stay Grounded Coffee Co. 

She paid $57,500 for the caravan, but had no legitimate means of income to pay for it. 

According to a reference online, the cart went to events "around the area, serving the finest Arrosta bean coffee with a range of cold drinks and other beverages".

In 2017, she and O'Connell took a Mazda Axela for a test drive in Ōtaki after seeing it on Trade Me.

O'Connell paid for it using $11,000 cash and it was registered in Kalivati's name shortly after.

A Toyota Hilux was also registered in her name. It was seen outside her property several times and was paid for with drug money. It was estimated to have cost $37,400.

As their drug fund continued to soar, O'Connell approached the owner of a home on Petticoat Lane, Shannon. 

He indicated Kalivati was interested in buying it. They later agreed she would pay $160,000 for the property. 

She said she wanted to pay a $30,000 deposit in instalments over nine months. 

Another $70,000 would come from her coffee business, $15,000 from a bank subsidy and a further $40-45,000 would be paid over 12 months. 

O'Connell then started paying the owner cash instalments, between $1000 and $6000, until the $30,000 sum was paid. The owner understood the cash came from Kalivati.(via Stuff)