Criminal Proceeds Act used for Health and Safety Breaches

Tuesday 22 April, 2025

On 15 September 2015, Jamey Bowring was working on top of a large tank containing petrol when the tank exploded, killing him. Jamey worked for Salters Cartage Ltd, which collects and processes used oil, supplies fuel oil and stores hazardous substances. 

The tank that exploded was not correctly labelled, some storage tanks were not correctly certified, and a prohibition notice issued by Worksafe had been breached. Worksafe prosecuted the company and Mr Salter on six charges each under the Health and Safety in Employment Act 1992 and Hazardous Substances and New Organisms Act 1996. 

Mr Salter was the managing director and chief executive and owned 50% of the company, with his wife owning the other 50%. The company and Mr Salter plead guilty to all six charges. Between them they were required to pay more than $400,000. Mr Salter was also sentenced to four and a half months home detention.

Proceeds of crime 

The Commissioner of Police also investigated the company under the Criminal Proceeds (Recovery) Act 2009. The Commissioner applied for civil forfeiture orders against the Salters and the company totalling $10.928 million.  

The Commissioner claimed that the Salters knowingly derived benefits from its health and safety breaches. It was alleged that the company profited from manufacturing hazardous substances without approval, failing to comply with regulations governing storage and handling of hazardous substances and breaching a prohibition notice. The alleged breaches were wider than what the Company and Mr Salter were convicted of in relation to the Worksafe prosecution. 

The company and the Salters objected to this. Their position was that the Commissioner could not obtain orders for offences when there had been no convictions. They also denied any wrongdoing beyond that for which they were already convicted. The company and the Salters denied that they had derived benefits from criminal activity, or knowingly doing so.

The Commissioner and the Salters were able to compromise and applied to the High Court to approve a settlement of the Commissioner’s claims. The parties agreed a profit forfeiture order of $4 million would be made against the company.  

Under the Criminal Proceeds (Recovery) Act the Court is required to approve a settlement if satisfied it is consistent with the purposes of the Act to eliminate and deter profit from significant criminal activity, and in the overall interests of justice. The Court approved the settlement noting that the overall interests of justice requirement does not require a total elimination of profit and a “common sense compromise” between the parties may be appropriate. 

Significance of this case 

This is the first case where the Crown has sought to recover proceeds of crime from a company or person in relation to health and safety offending.