An American who made more than one million dollars off a land deal in Queenstown has become the first person convicted for breaching the rules for foreign investors.
Lance Weller faces a fine of $17,000, plus $5,000 in costs, after failing to fulfil a promise he made to plant trees on his property. Instead he built a holiday home which he subsequently sold for more than $1 million.
The Overseas Investment Office says the successful prosecution should serve as a warning for others.
Professor Peter Enderwick, from the Auckland University of Technology International School of Business, says there are a number of reasons why there haven't been any prosecutions in this area before, including a lack of resources to investigate cases.
