US Couple Stash Fortune in New Zealand
The wife of a US millionaire has successfully frozen US$6.5 million (NZ$9.4m) he had stashed in New Zealand.
In November Gilda Castillo filed for divorce from her husband Leopoldo Castillo in a Florida court. Later that month the court made orders preventing Leopoldo Castillo from disposing of property.
When the couple met in 1987 they had very little money. Leopoldo Castillo went on to build a highly successful insurance company, bringing them “considerable wealth”, a High Court ruling said.
The couple bought homes in Venezuela; Florida; an apartment in New York City; planes, including a Gulfstream jet, yachts and expensive cars.
Leopoldo Castillo has an estimated net wealth of US$150m.
Two days after the Florida court order Leopoldo Castillo transferred US$6.5m to a trust in New Zealand of which Trident Trust Company is its trustee.
He then ordered Trident to transfer all but $50,000 of it to Panama.
Trident refused to send the money abroad, citing the Florida restraining orders.
Gilda Castillo applied at the High Court in Auckland for a freezing order or interim injunction over the money.
Leopoldo Castillo, who, like his wife, was originally from Venezuela, had his US visa revoked in 2011.
Gilda Castillo continued to live in Florida with their five children.
“The relationship was not without other difficulties, or at least alleged other difficulties,” the court decision said.
“Mrs Castillo says Mr Castillo had and continues to maintain mistresses and illegitimate children. She also says Mr Castillo was controlling and abusive.”
Gilda Castillo said Leopoldo Castillo cut off her maintenance, stopped paying expenses in relation to their Florida home, and sold more than US$66m of assets.
The New Zealand trust, set up in 2015, has Gilda and Leopoldo Castillo and their children as beneficiaries.
In a High Court decision updated on Friday Justice Matthew Downs said Gilda Castillo had “a good arguable case” and, based on evidence, was entitled to an equal share of Leopoldo Castillo’s businesses’ success.
The grounds for a freezing order were satisfied, he said.