General manager alleges he was blackmailed by the company director
The High Court in Auckland has found that a company director and his father engaged in blackmail against a former Timber King general manager, compelling him to pay over $1.2 million, according to reports.
The case began in February 2018 when director Jackie Liu discovered $400,000 missing from Timber King, a construction company also known as Three Brothers Building Centre.
Instead of reporting the alleged theft to authorities, Liu confronted general manager Hua Wu, who ultimately agreed to repay the money, the New Zealand Herald reported.
However, Wu later contended that the agreement was reached under duress, claiming he was threatened with police action, as well as involvement from the Inland Revenue and Immigration.
Wu explained that he was pressured to sign documents agreeing to pay an additional $1.2 million, which included transferring ownership of a property in MÄngere to Jinxing Liu, Jackie's father.
"I was blackmailed and threatened by Jinxing and Jackie," Wu told the court, as quoted by the Herald.
Over a four-month period, Wu made two payments of $200,000 each, but he claimed the situation escalated rather than resolved.
He accused the Liu family of defamation, alleging that they called his parents in China and threatened to send "Mafia-type" debt collectors to their home.
"They spread false rumours about me and defamed me, saying that I was a liar and had stolen Timber King and their property and money. This destroyed my reputation in Chinese business circles in New Zealand," Wu added.
In March 2022, Wu initiated legal proceedings to recover the $1.2 million he claimed he was forced to pay, as well as the initial $400,000.
However, he dropped the claim for the latter shortly before the trial began to focus solely on the larger sum, asserting that the allegations of theft were unfounded.
The Liu family disputed Wu's account, claiming the $1.2 million was related to a debt Wu had owed for a decade but failed to repay.
However, Justice Graham Lang ruled that this position was "inherently unlikely."
The court found that Wu's payments were clearly tied to the missing funds from Timber King, the New Zealand Herald reported. Evidence presented in court included a covert recording Wu made of a conversation with Jinxing and his wife, which Lang deemed significant.
He noted that it was evident Wu and his wife had compelling reasons to make such substantial payments, stating: "Mr Wu had repaid the sum of $400,000 but Jackie and Jinxing were obviously not satisfied this was adequate recompense. They wanted more."
Lang acknowledged that while it was unclear whether physical threats were made, the pressure exerted on Wu and his family was considerable.
"In all likelihood, it involved, at the least, threats to report the thefts from Timber King to the police or the immigration authorities," he ruled.
The judge concluded that Wu and his wife entered into the payment agreement under significant pressure, which amounted to blackmail.
Despite acknowledging the duress under which Wu entered the agreement, Lang ultimately dismissed his claim for reimbursement, noting Wu's failure to act on the agreement for over three years as an indication that he was willing to abide by its terms.
