Philip Polkinghorne trial live updates: Pauline Hanna’s hair, beauty and skin care expenses revealed
WARNING: DISTRESSING CONTENT
Eye surgeon Philip Polkinghorne gave just under $300,000 to six women via bank transfers in the years before his wife’s suspicious death, jurors learned this morning at his murder trial.
At least three of the women have been identified by witnesses as sex workers, including high-profile Sydney escort Madison Ashton.
Polkinghorne also made cash withdrawals of $439,450 during the same period – some of which, the Crown alleges, also appears to have gone to Ashton.
Polkinghorne, 71, is accused of having fatally strangled wife Pauline Hanna, 63, inside their Remuera home before staging the scene on April 5, 2021, to look like a suicide by hanging.
Prosecutors have suggested he lashed out at his wife while high on methamphetamine, possibly during an argument over the exorbitant amount he was spending on sex workers or a secret “double life” with Ashton.
But today marked the first time jurors in the High Court at Auckland were given specific numbers to indicate the immense scale of the sex worker spending.
The defence has contended the couple had a happy “open” relationship and that Hanna’s history of depression was responsible for her death rather than foul play.
STORY CONTINUES AFTER LIVE BLOG
Hanna's finances in focus – join us again tomorrow
Hamish Fletcher
After some confusion with documents, Justice Lang has decided that we will call it a day there, halfway through Hanna's finances. The jury is being told to take all their documents and notes back to the jury room adjoining Courtroom 11.
Court will resume 10am tomorrow for more cross-examination by Ron Mansfield KC of police forensic accountant Margaret Skilton, and more questions about Pauline Hanna's finances.
Skilton first entered the witness box late on Tuesday afternoon and has spent all of today giving evidence.
Department stores, women's wear, beauty – Hanna's spending traversed
Hamish Fletcher
Mansfield launches into questions about the account Hanna used for her income and spending. The trial heard earlier it was a joint account.
2016 spending:
She spent nearly $10,000 on women's wear, $2393 on shoes, $5747 on menswear, $2788 in a department store or stores, $4495 on beauty, $5232 on hair, $2425 on skincare and $8060 dry cleaning, Mansfield says.
2017 spending:
Women's wear $13161, men's and women's wear $2495, shoes $399, menswear $978, department stores $6041, beauty $1408, hair $4901, skincare $2217, dry cleaning $5462.
2018 spending:
$7461 women's wear, shoes $764, menswear $174, department stores $5532, beauty $7294, hair $4629, skincare $2371, dry cleaning $3549.
The trial is back on the move
Hamish Fletcher
Mansfield says he's about to embark on a new topic and raises the topic of knocking off early.
Justice Lang reveals the much more spacious Courtroom 11, the original home of the trial, is free again after a sitting of the Supreme Court.
So the jury is going to carry their items, including various evidential booklets, over to that room.
But not yet, because the room needs to be cleaned.
It's been decided we will have 15 minutes more of cross-examination.
Polkinghorne's and Hanna's net worth
Hamish Fletcher
Mansfield is attempting via cross-examination to suggest Hanna did not have a right to much if any of the proceeds of the sale of the Papatoetoe property their trust owned, because, he said, she did not contribute to its purchase or upkeep.
The jury has repeatedly heard he used the funds from the sale of this property to purchase $500,000 of shares in an account he held, with some of the remainder paid to two women, including Australian escort Madison Ashton.
On to their net worth, calculated by Skilton at just over $10 million. There was also the extra $2m held in shares by JBWere fund managers.
Mansfield asks if she's suggesting the investment into JBWere was not a good investment.
"Well, I used to invest with them," Skilton says.
"Well, there we go. The seal of approval," replies Mansfield.
Skilton is asked whether Polkinghorne's annuity from NPF Pension would have been matrimonial property. She doesn't know.
Escort paid with proceeds of premarital property purchase – defence lawyer
Hamish Fletcher
The Papatoetoe property was sold in July 2020, Skilton agrees. She earlier told the court how the proceeds were dispersed.
Mansfield has the witness reiterate Hanna did not appear to contribute to that property or its management.
The defence lawyer returns to the details of how the funds were dispersed.
They include two payments of $250,000 to JBWere for the purchase of shares.
There's $72,000 to an account in Australia in Polkinghorne's name.
Plus payments to Madison Ashton, the Australian escort, and another woman.
Skilton says that money funded those transfers.
There was also $150,000 to Ben Polkinghorne (his son).
Mansfield says the court will hear evidence those funds went towards the purchase of a property for Ben and his partner.
And there was $26,000 for the purchase of the red Ssangyong ute.
That would form part of matrimonial property, Skilton agrees.
She says she wasn't aware it was used by both Hanna and Polkinghorne.
"I couldn't tell that from the bank statements."
Polkinghorne's premarital property purchase
Hamish Fletcher
Mansfield moves to the Hanna Polkinghorne Trust and the Hoteo Medical Centre property in Papatoetoe that Hanna and Polkinghorne owned via the trust.
More documents are produced.
The first document the witness has been handed is the property information from Terranet, says Mansfield.
The second is the certificate of title.
Mansfield says the property was the primary asset for the Hanna Polkinghorne Trust. Skilton agrees but says she didn't obtain the title.
Mansfield says the Hoteo Medical Centre is a limited liability company.
Skilton agrees. Mansfield says its shareholders were Polkinghorne, and until 2007, David Ansell.
It was incorporated in 1985 to purchase the property in Papatoetoe, Mansfield says.
The witness is looking at the Companies Office records online on her laptop, making her way through the documents and shareholder details.
In March 2006, Polkinghorne purchased Ansell's shares, says Mansfield. Skilton says she doesn't know.
Mansfield says the property in Hoteo Ave was purchased in 1985, before Polkinghorne began his relationship with Hanna.
He says they started their relationship a decade later, in 1995.
Skilton, the forensic accountant who has spent all day in the witness box, agrees she's seen no document to suggest Hanna had herself invested in the property.
Mansfield asks if the witness saw any reference to the division between Hanna and Polkinghorne in the joint venture?
Skilton confirms she saw that 75.5% was to be held in the name of the Hanna Polkinghorne Trust, and 24.5% was to be held by Ophthalmic Trust Number 2, which Polkinghorne was a beneficiary of, but Hanna was not.
Hanna then began contributing $2000 per week in about 2016 into the bank account held by the trust, she agrees.
The property derived income by way of rent – $1780 per month to the Hanna Polkinghorne Trust ANZ account.
More questions about the house
Hamish Fletcher
Mansfield produces a document from the property information site Terranet regarding the Upland Rd property.
He has another, the actual certificate of title for the $6 million Remuera home.
It was transferred to the trustees, Polkinghorne, Hanna, and his sister Ruth Hughes, in 2003.
Now to the Ring's Beach bach in the Coromandel.
Similar documents are produced.
The original registered owners are Polkinghorne, Hanna and Hughes once again.
Mansfield moves to the Hanna Polkinghorne Trust and the Hoteo Medical Centre property in Papatoetoe Hanna and Polkinghorne owned via the trust.
The first document the witness has been handed is the property information from Terranet, says Mansfield.
The second is the certificate of title.
Mansfield says the property was the primary asset for the Hanna Polkinghorne Trust.
Skilton agrees but says she didn't obtain the title.
And we're back
Hamish Fletcher
Defence lawyer Ron Mansfield resumes his cross-examination of police forensic accountant Margaret Skilton on the trustees of the Hanna Polkinghorne Trust.
Skilton confirms that when you set up a trust, you can name it whatever you want.
Trustees of that trust were Pauline Kay Hanna, Philip John Polkinghorne, and a third man with name suppression.
Questions of trust
Hamish Fletcher
It's not unusual, asks Mansfield, when trusts are set up for a member of the family to be one trustee and someone outside the family to be the other, but someone who is trusted?
Skilton confirms that's not unusual.
Mansfield says that was the role of Ruth Hughes, Polkinghorne's sister, on the trust.
"I think we'll take the adjournment now," says Justice Lang.
We'll be back in 15 minutes.
Who owned Remuera mansion, holiday home
Hamish Fletcher
Mansfield says Polkinghorne had the responsibility for paying rates, broadband, cellphones and similar.
It's not unusual, asks Mansfield, for one person in a relationship to look after the finances in the relationship, is it?
Yes? replies Skilton uncertainly.
The defence lawyer moves on to ask who was the owner of the Remuera property and the Ring's Beach bach.
The Coromandel property was owned jointly by Hanna, Polkinghorne and Ruth Hughes, his sister.
The Upland Rd property on Remuera's Northern slopes in Upland Rd was owned by Philip Polkinghorne and Hughes, at the time of Skilton's report.
Ring's Beach is owned by Pauline Hanna, Ruth Hughes and Philip Polkinghorne, the witness confirms.
Mansfield is referring the witness to a trust deed.
It's for the Ophthalmic Trust Number 1, which owns the two properties, says Mansfield.
Skilton says she wasn't aware of that.
The beneficiaries of that trust are Polkinghorne, any spouse of his, the children, and any of their children.
Hanna's Xmas spend
Hamish Fletcher
The focus returns to the two ASB accounts Pauline Hanna opened in her own name in late 2020.
Skilton says one account was a personal loan account and the other was a personal transaction account.
There is a $2000 debit on the account, the drawing-down of the loan, and fortnightly repayments of $72.62, Skilton says of the accounts Hanna opened about four months before her death.
Mansfield is asking what the money was being used for. It included Trelise Cooper, Caltex Newmarket, Mobil Thames, Desiree Costume Hire, Caltex Penrose, Desiree Costume Hire again, Victoria Ave fruit and veg, Ascot Pharmacy, New World Remuera, Farro Fresh x 2, Rodney Wayne, New World Remuera, Best Cherries.
"Looks like it's Christmas time," says Mansfield.
There are also a few inward transfers of small amounts, the trial hears. Those are repaying the loan, Skilton agrees.
"So there's no payments to private investigators, are there?" Mansfield asks.
"No," says Skilton.
And no payments to matrimonial lawyers? the lawyer asks.
No, agrees Skilton.
Earlier, the trial heard how Hanna had told her niece she was considering contacting a divorce lawyer and a private investigator. A private investigator gave evidence saying Hanna had contacted him but not enlisted his services or even gone through with a meeting or phone call.
Witness grilled over Polkinghorne's income
Hamish Fletcher
Mansfield is now asking Skilton about Polkinghorne's annual income.
It did not include operating expenses and tax.
The court hears that the period April 2020 to March 31 2021 had inwards transfers totalling about $750,000. That's pre-tax.
March 31, 2019 to March 31, 2020 was $562,000? asks Mansfield. Skilton isn't sure.
Mansfield grows more annoyed.
"No, look – did you examine his tax returns?" the lawyer asks.
She did not.
Mansfield said they showed that in the year ending March 31, 2019, the taxable income was $805,564.
For the year ended March 31, 2020 it was about $561,000.
And for the year ending March 31, 2021 it was $426,663, Mansfield said.
The amounts she added up were merely payments from Auckland Eye but she said this would be before expenses and tax.
She said she did not go to Inland Revenue to get his tax returns or to Auckland Eye to see what the payments were for.
What about the District Health Board? Mansfield asks.
"I didn't know he was earning money from them," Skilton says.
Mansfield says Polkinghorne was retired from the public health system at the time. The only DHB payments she saw were Hanna's salary, Skilton says.
How far back in the accounts did you go? Mansfield says.
From January 1, 2016, she said, to March 31, 2021, she says.
Were they both left financially comfortable in the end? asks Mansfield.
Yes, says Skilton.
She agrees even if they separated, Hanna would be comfortable on her salary, as would Polkinghorne, even on his pension.
And that's before the division of the $10 million in assets? Skilton again agrees.
Witness grilled over Hanna's salary
Alanah Eriksen
Mansfield says he's trying to work out how many cards have access to the same account and were in circulation.
He asks if you don't necessarily need the Pin to make transactions, therefore you don't necessarily know who is making the transactions.
Skilton confirms that's the case.
The point of this cross-examination has become clear. Mansfield is saying you can't prove who may have used a debit card.
The cross-examination becomes a bit more tense.
"You will know from your job that people can, especially in a relationship, borrow or share or just use their spouse's card?" Mansfield asks.
"I don't know that from my job," Skilton says.
We get involved, says Skilton, when fraudulent transactions are made.
She concedes that beyond which bank account or possibly which card were used for an ATM withdrawal, you can't tell who made that withdrawal.
Mansfield says some people also use cash for day-to-day spending.
"It's more rare now, a lot of companies don't even take cash any more," says Skilton.
But she concedes some people still use it day-to-day.
Mansfield is asking about Hanna's salary.
He is asking her to use her computer to work out her annual salary by multiplying her fortnightly salary by 26.25.
"I was going to try and do it in my head," says Skilton, who earlier says she started in a bank aged 18.
So the calculation is $5800 x 26.25, which equals $152,250 approximately.
Skilton confirms that's the net salary, after tax deductions and Kiwisaver contributions.
Mansfield says it could equate to a salary of $208,000 to $212,000.
If she wanted to separate, asks Mansfield, could she redirect that salary into another account?
She could, says Skilton.
Couple's $30k insurance cover
Mansfield says the couple both had $30,000 of life insurance cover, according to the Partner's Life document.
Justice Lang interjects – "I'm not sure that it does say that. It looks like a quote."
Mansfield says we'd hear evidence later that the policy was accepted.
Mansfield now asks about whether a number of professionals were involved with the couple's financial and legal affairs.
He asks if there was a firm of chartered accountants, RSM, who were managing the accounting for the couple.
"For the trusts, I believe," Skilton says.
The witness begins tapping away on a computer with the judge's leave.
A brief pause.
"Craig Cooper seems to be the person that I was dealing with".
Mansfield says their prior accounting firm was Bendall and Cant. Skilton agrees.
On to JBWere, the wealth managers used by Polkinghorne. The witness confirms material was sought from them.
Skilton says she emailed questions from time to time to Craig Cooper from RSM but she doesn't know if they were interviewed by detectives.
Skilton says she did not see a statement from the couple's lawyer, Simon Blackwell.
Skilton says her brief was to study the activity on all the relevant bank accounts. That starts with ascertaining who has control over what account, she says.
She says ANZ information is a "little harder to come by" than details from ASB accounts.
Skilton says ASB provided debit card information as a matter of course, but it was "almost impossible" to get similar information from ANZ.
As an aside, Mansfield is continuing to refer to Pauline Hanna as "Mrs Polkinghorne" in his questions. The prosecution always refers to her by the name Hanna, and her relatives earlier said they didn't know her to go by Polkinghorne.
Mansfield is asking for the debit or credit cards issued in Polkinghorne's name.
He had one ANZ credit card with a $50,000 limit, a business credit card with a $10,000 limit and a personal credit card for ASB with a $5000 limit, the trial hears.
Cross-examination begins of forensic accountant
Alanah Eriksen
The trial has not heard any evidence there was a mortgage on either the Remuera property or the Coromandel bach.
Pauline Hanna was not a beneficiary of the Ophthalmic Trust Number 2, so the witness did not include it in the total.
Prosecutor Brian Dickey has no further questions for the witness.
Ron Mansfield KC begins his cross-examination of police forensic accountant Margaret Skilton.
He is starting with her calculation of their net worth and joint assets.
"On your calculation their joint assets were approximately $10,491,000, correct?"
"Yes," she responds.
And you will know, says Mansfield, when it comes to a couple, if they chose to separate, assets no matter whose name they are held in, would be divided 50/50 ordinarily, given the length of the marriage.
"Of course," Skilton responds.
So it doesn't matter what name an asset or bank account is held in? asks Mansfield.
No, replies the accountant.
The bank accounts would also be split, no matter who was the sole authority, Skilton agrees.
She confirms both would get about $5.25 million if they were to separate, based on her calculation.
"So that's quite a significant sum for both of them individually isn't it?" asks Mansfield.
"Yes," says Skilton.
"Especially given their age and stage in life?" asks Mansfield.
"Yes," says Skilton.
Mansfield asks if, no matter whose name an asset is held in, or who had signing authority, both partners or their lawyers would become aware of their combined assets.
"Correct," replies Skilton.
Mansfield asks if she looked into whether there was life insurance held by either of the couple.
She did not.
He asks if police otherwise identified life insurance policies for either Hanna or Polkinghorne.
Skilton recalls a diary note relating to Hanna's ASB account, opened on her own late in 2020. Whoever was her account manager talked to her about whether she wanted life insurance, but she does not appear to have responded in the affirmative, the trial hears.
Mansfield has produced a document from Partners Life which appears to show the couple had a partner's protection plan summary, presumably life insurance.
Couple worth over $10m – but Polkinghorne controlled finances
Alanah Eriksen
It's possible the two December 2020 accounts opened by Hanna were opened without Polkinghorne's knowledge, says Skilton.
It was unusual for someone in Hanna's position to have no credit cards, the witness observes.
There was a change from mid-2020 when transfers ceased from their joint account, Skilton says.
Skilton says it does not appear to her from the bank statements that Polkinghorne had any oversight of the accounts.
"Mr Polkinghorne was withdrawing significant amounts of cash each year."
Skilton says it was increasing yearly.
There were also transfers to the account held by Polkinghorne in Australia, she says.
"I don't know what the purpose of those transfers were."
Skilton says she worked to establish the couple's net wealth.
- They jointly owned two properties, in Upland Rd Remuera and Bluff Rd Coromandel (Ring's Beach). Remuera was worth $5.171 million while Coromandel was $1.935m.
- His annuity (pension) was worth $1m.
- The JB Were investment was worth $2.2m.
- The 2020 LTD bank account had $114, 000.
- $28,000 was in the couple's combined personal accounts.
- The Hanna Polkinghorne Trust account had $44,000.
- The couple's total net worth was $10.491m, not including the Ophthalmic Number 2 Trust, which had a net value of $2m.
Polkinghorne had control over Hanna's finances – forensic accountant
Alanah Eriksen
The jury is in and prosecutor Brian Dickey is back on his feet to continue leading the evidence-in-chief of Margaret Skilton.
Dickey says we've missed one table from the evidential booklet, it covers transfers to Polkinghorne's Australian bank account.
She says they don't know what happened to the cash once it was across the ditch.
The 2019 total was $20,500 to his Australian account.
The 2020 total was $142,270.
And in 2021, to March, it was $35,580.
On to Hanna's accounts again.
Essentially, she only had one bank account, Skilton says.
That joint account was where her salary was paid and where most of her spending was from until December 2020, when she opened an ASB account in her own name.
Polkinghorne was the instigator of the majority of transfers from the main account used by Hanna.
"Mr Polkinghorne had control over Ms Hanna's financial position by being signatory to that account and being sole authority over the other accounts," Skilton says.
Court resumes
Alanah Eriksen
The trial has resumed with evidence from police forensic accountant Margaret Skilton about a summary of her analysis of Polkinghorne's finances.
The Herald live coverage observes a 10-minute delay so our next update from Herald reporter George Block will be in about five minutes.
This morning's evidence – the recap
Andrew Laxon
To recap some key points from that frenetic morning of financial evidence from the police forensic accountant Margaret Skilton:
- Polkinghorne for a time had the Northcote sex worker Alaria aka Rachel on a $500 weekly payment.
- The eye surgeon paid $106,131 directly to Madison Ashton. She was the Australian escort the trial heard earlier was staying with Polkinghorne in the "Matariki Room" of a lodge in Mt Cook Village, which police visited 25 days after Pauline Hanna's death. Polkinghorne was there with Ashton. Detectives seized Ashton's phones.
- Other women also received thousands from Polkinghorne.
- Polkinghorne's card was used for $115,000 of further cash withdrawals in Australia, when he was in New Zealand, travel records showed.
- Polkinghorne used some of the proceeds from a sale of a rental property to pay two women, including Ashton.
- Hanna's DHB salary was $5800 per fortnight.
- Over one year, Polkinghorne received $756,496,54 from his clinic Auckland Eye.
- Polkinghorne exercised control over most of their finances.
- The lion's share of the sale of the rental went to a managed fund over which Polkinghorne had sole control.
- Polkinghorne's net worth a decade ago was nearly $8 million.
After the lunch break – a summary of Skilton's bank account analysis
Andrew Laxon
Now to the summary of Skilton's analysis. In fact, Justice Lang wants to leave the summary to 2pm. We are taking lunch.
Where the house sale money went
Andrew Laxon
Skilton is recapping the fate of the money from the sale of the rental.
These included two transfers of $250,000 to their fund managers JBWere and $72,000 to Polkinghorne's Australian bank accounts.
There were also payments to the woman called Jody, and Madison Ashton (see amounts earlier in evidence), $150,000 to his son and a little over $20,000 for the Ssangyong ute.
On to JBWere. They are a wealth manager, Skilton explains.
Instead of buying shares in your own name, you give them money and they make the share or bond allocation decisions for you, she says.
Polkinghorne had an account there. He was the sole authorised person.
When the account was established with JBWere, they asked for a schedule of all assets, Skilton says.
Skilton has that 2014 schedule, totalling $7.8m.
It included the superannuation fund, an annuity.
Polkinghorne estimated the pension was worth about $1 million.
The JBWere portfolio was valued about $2.5m as of September 19, 2021.
Contact notes show Polkinghorne had a discussion at JBWere about investing $500,000 before the transfers from the sale of the Papatoetoe property.
No evidence that Hanna signed off on fate of money from property sale, court told
Andrew Laxon
Money from the sale of the Papatoetoe property went into the ANZ account held by Polkinghorne.
There was nothing signed by Hanna relating to the fate of the money from the property sale that was apparent in the trust records, Skilton says.
Skilton is now referring to emails between lawyers and accountants discussing the best outcome of the property sale from a tax perspective.
Polkinghorne said the proceeds went into their managed funds and a loan to Ben, his son.
"The plan is not to give away any dollars until we both croak," Polkinghorne wrote.
Jury hears more details from Polkinghorne-Hanna bank accounts
Andrew Laxon
Hanna's DHB salary was paid into the joint ASB account. During that period it totalled about $680,000.
That was the main source of money into that joint account.
Other internet banking transfers made by Hanna were generally reversing that $1500 fortnightly payment, within sub accounts in the joint account.
On to the ANZ Hanna Polkinghorne Trust account's internet banking records.
The internet banking transfers numbered 49 between January 2016 and March 2021.
There was a transfer of $8000 to JBWere, two transfers totalling $19,000 to a sole Polkinghorne account, a $9000 transfer to his credit card and another $3000 credit card transfer.
There was $309,000 in total transferred from the Hanna Polkinghorne Trust ultimately into accounts that Polkinghorne had the sole control over.
Beneficiaries were Pauline Hanna, Polkinghorne, their family members, and several family members of Hanna.
Trustees were Polkinghorne, Hanna and a man with name suppression, who later resigned as a trustee.
The Papatoetoe rental was sold on July 17, 2020.The proceeds went into an ANZ account.
The vendor of the property was the Hoteo Medical Centre Ltd. Its sole shareholder was Philip Polkinghorne.
How the bank accounts worked
Andrew Laxon
There never seemed to be a balance accumulating in the Hanna Polkinghorne Trust account.
Her analysis showed that when the balance got to between $8000 and $1500 there would be a transfer to the joint ASB account.
There were $2000 payments from that account to the Hanna Polkinghorne Trust account and then back to the ASB account when the sum accumulated.
There were a lot of transfers in and out of the account, showing transfers over a short period of time into other accounts, not joint accounts. The accounts were under the sole control of Polkinghorne, Skilton said.
The funds in the Hanna Polkinghorne Trust that weren't dispersed via that circular method were used to pay tax bills.
Hanna retained about $19000 from the account from 2016 to 2021. They weren't transferred out but were spent by Hanna.
Transfers from the Hanna Polkinghorne Trust in May 2020.
From then, money remained in the Hanna Polkinghorne Trust account
It started to grow from May 2020 and ended up as $44,000 at the end of March 2021.
Onto the internet banking analysis.
Skilton said banks seek to verify you are the person accessing the account by linking you to a customer number.
In the ASB accounts, she found the internet banking for Polkinghorne and Hanna.
The period that the data covered was January 2016 to April 2021.
The ASB joint account is the current focus of discussions.
There were 147 transfers that bore the 780*** number, Polkinghorne's .
Of those, there were $50,230 inward transfers attributed to him.
Outward transfers attributed to him were $348,878.
There was also the $2000 regularly from that account to the Hanna Polkinghorne Trust account totalling about $266,000.
Hanna Polkinghorne Trust bank account
Andrew Laxon
The joint account was where Skilton saw most of Hanna's financial activity, the trial hears.
On to the Hanna Polkinghorne Trust bank account.
It was an ANZ account ending in 700. The main income was the fortnightly $2000 transfer, coinciding with Hanna's salary of $5800 per fortnight.
There was a monthly payment of $1780 from the Papatoetoe rental, which was subsequently sold.
Polkinghorne and Hanna's joint account
Andrew Laxon
There is a joint account between Hanna and Polkinghorne ending in 080.
Her DHB salary of $5800 per fortnight was paid into that account.
There was a regular $2000 deduction to the Hanna Polkinghorne Trust account and an automatic payment of $1400 to another account.
Pauline Hanna's accounts
Andrew Laxon
Skilton says both Hanna and Polkinghorne paid for household expenses.
Moving on to Hanna's accounts.
There was only one account she held by herself, an ASB account.
There are two suffixes or sub accounts attached to that account, Skilton says.
They show Hanna applied for two $2000 personal loans in December 2020.
She then repaid $2000 on January 11. The account showed personal spending, including shopping.
At the time of Hanna's death, the account held solely by her was overdrawn by about $91. The loan account had a sum owing as well.
Hanna did not have any credit cards.
On to the joint accounts.
Cash withdrawals outlined in graphs
Andrew Laxon
These graphs and tables have been shown to jurors.
Polkinghorne paid $756,496 over a year by Auckland Eye
Andrew Laxon
Dickey moves us on to yet another ANZ account. It was held by 2020 Ltd, into which Auckland Eye payments were received.
Over a year, they totalled $756,496.54.
There were also payments from that account to the woman payee called Jodie.
Polkinghorne had three credit cards, Skilton says. One had a $50,000 limit, another had a $10,000 limit and a third had a $5000 limit.
In 2016, Skilton says, cash withdrawals totalled $30,000.
In 2017, the withdrawals totalled about $22,000; in 2018, about $22,000; in 2019, about $49,000; in 2020, about $85,100; and in 2021, about $21,000.
More detail on Polkinghorne's bank accounts
Andrew Laxon
Skilton says the largest inward transfer she observed was about $1,022,000, the proceeds of the sale of a property in Papatoetoe.
It went into the ANZ account.
The funds were then dispersed over a year.
There were two $250,000 transfers to JBWere for investments in Polkinghorne's managed fund, held by the fund manager.
And there were further transfers of $72,000 to Polkinghorne's account in Australia.
"We don't have the ability to apply for court orders in Australia," says Skilton, adding the Aussie banks wouldn't comply with New Zealand court orders anyway.
There were also transfers to a woman called Jodie, and also Madison Ashton.
There was a transfer of $152,000 to Ben Polkinghorne (Polkinghorne's son).
And about $26,000 for the purchase of a Ssangyong (the trial heard earlier Polkinghorne and Hanna had a red Ssangyong ute).
By March 2021, the balance in that account had reduced to $5000 from more than $1 million.
Now on to Ophthalmic Trust Number 2.
Skilton noticed regular income into that account of about $11,000 per month.
It had references "2020 Rentals" so she assumed it was rental payments for equipment the trust owned.
There was also a distribution of $20,000 from an entity called MacMurray Property Holdings.
This was a company part-owned by Polkinghorne and his sister.
There were also numerous cash withdrawals, Skilton adds.
The other activity on the account made it appear it was a transactional account for sundry expenses, the forensic accountant says.
Polkinghorne's card used for $115,000 of further cash withdrawals in Australia, when he was in New Zealand
Andrew Laxon
Dickey moves on to cash withdrawals.
There were numerous cash withdrawals in Australia, Skilton says, which she says she found interesting.
What follows are cash withdrawals in New Zealand dollars.
Skilton has noted cumulative cash withdrawals from February 2018 to February 2019. There are approximately 120 cash withdrawals from ATMs in Australia totalling $115,000.
Most were made when Polkinghorne was not in Australia, but when Ashton did live in Australia.
In early 2019, he started making international transfers to Madison Ashton and those cash withdrawals in Australia ceased – these comprise the $106,000 mentioned in evidence earlier.
Skilton says they knew Polkinghorne wasn't in Australia when the cash withdrawals were made because she had access to his travel records.
Polkinghorne contacted ANZ in August 2019, asking why his partner's card had been cancelled.
He said that she needed it to withdraw funds in Australia. But Skilton says Hanna was in New Zealand at the time.
She couldn't establish what that card was used for or was going to be used for, the trial hears.
But she had confirmed both Polkinghorne and Hanna were in New Zealand.
Polkinghorne paid Aussie escort $106k
Andrew Laxon
On to other accounts controlled by Polkinghorne.
Skilton made a note and totalled up repeated payments from that account as well.
She is referring to payees by their surname.
"We should say these are all females, aren't they?" prosecutor Brian Dickey asks.
"Yes," says Skilton, agreeing the investigation team all found links between Polkinghorne and the women.
Here we go: $72,100 to a person surnamed Kelly, last payment March 19, 2021; $106,131 to Madison Ashton in Australia. The last payment was on January 5, 2021.
Ashton was the Australian escort the trial heard earlier was staying with Polkinghorne in the "Matariki Room" of a lodge in Mt Cook Village that police visited 25 days after Pauline Hanna's death. Polkinghorne was there with Ashton.
Detectives seized Ashton's phones.
The next person is a woman called Lee, a sex worker already discussed in evidence, who received $35,905.
Back to Alaria, aka Rachel. Transfers to her from that account totalled over $5000.
Other payments to her totalled more than $55,000.
Then a woman named as I. Hislop, who received $7160 in her Australian account.
Then another woman, who got $13,550.
Polkinghorne paid $55,850 into sex worker's account
Andrew Laxon
The same account showed various one-off transfers, Skilton says, totalling $55,850.
Dickey is asking about the Alaria Family Trust.
Skilton says they obtained documents about this trust. Rachel, aka Alaria, was a trustee.
A trust deed they obtained proposed that Polkinghorne would become a trustee, replacing a previous trustee. The trust deed was as yet unsigned.
Dickey moves on to other activity on the ASB account.
There was a repeated $500 transfer in July 2020 to a woman called Sharon. And another transfer of $500 to the same person shortly after.
Polkinghorne paid North Shore sex worker $500 per week
Andrew Laxon
Prosecutor Brian Dickey is leading the evidence, asking police forensic accountant Margaret Skilton about activity on bank accounts attributed to Polkinghorne.
An ASB account ending 453, operated solely by Polkinghorne, is the first one in focus.
There were several cards linked to the account.
Skilton explains she looks for trends as part of her analysis.
She noticed a significant number of cash withdrawals from the account attributable to his cards.
There were monthly payments into the account from an entity called MPF pension of more than $6000 per month.
There were also fortnightly payments of about $450 from national super.
Skilton explains that she used to do currency hedging for MPF when she was in banking. It appeared to be a superannuation he qualified for.
It's a public scheme used by people in the public sector. The trial heard earlier he worked in the public health sector, as well as a private ophthalmology practice.
There was a regular weekly payment of $500 to an account named "Alaria Family Trust", starting in February 2019.
Alaria is the name of a woman the trial heard earlier was a sex worker whom Polkinghorne used to regularly visit in Northcote, driving his white Mercedes, licence plate RETINA.
Later it was reduced to $350 but ceased altogether on March 24, 2021.
Juror delayed, judge tells court
Andrew Laxon
Here is Justice Graham Lang and in comes the jury.
The late start was because a juror encountered a transport delay that was beyond their control, the trial heard.
"In a lengthy trial, things like this are simply inevitable," Justice Lang said.
"We're very grateful for the efforts you've made over the last three and a half weeks to always be here on time," he added.
Police forensic accountant Margaret Skilton is back in the witness box.
Almost ready to go
Andrew Laxon
All indications are that we are just about ready to go.
The public gallery is again full to its 42-seat capacity.
Updated start time
Andrew Laxon
Proceedings are now set to start about 11am, with more financial evidence from the police forensic accountant Margaret Skilton. Lunch will be taken about 12.30pm.
Steve Braunias on yesterday's evidence
Andrew Laxon
In the interim, read Steve Braunias' take on yesterday's proceedings (Premium).
Andrew Laxon
Delayed start
Andrew Laxon
There is some delay in the trial beginning, it's unclear why. After a quiet day yesterday, the throngs of people who have been coming to court each day are massing outside the doors of Courtroom 13 to secure one of the limited seats.
Open justice prevails after Ministry of Health official seeks to suppress aspects of coverage
Andrew Laxon
Earlier this week, Ministry of Health Suicide Prevention Office principal advisor Tania Papalii wrote to the High Court.
She attached letters from academics urging the court to suppress aspects of the trial coverage, namely the method the defence says Pauline Hanna used to take her own life, a key pillar of the defence case.
The University of Auckland director of population mental health urged Justice Graham Lang directly to use the Coroners Amendment Act to suppress the suicide method mooted by the defence.
Her letter said: “It is my view, that the repeated coverage, including detailed photographs of means associated with suicide, has a very real prospect of causing an increase in deaths by suicide in New Zealand. It is my opinion that it makes no material difference to the potential for suicide contagion that this is a criminal matter compared with a matter before the Coroners Court.”
Justice Lang declined, as he did when he received a similar letter earlier in the trial from the Mental Health Foundation.
The judge acknowledged the concerns but said he had very little ability to intervene in the manner in which the trial is being reported.
Justice Lang attached the minute he issued earlier after the Mental Health Foundation raised concerns.
“The short point is that the court has no power to dictate the manner in which accredited news organisations report proceedings in court,” he wrote.
“This reflects the fact that such organisations are the primary means by which court proceedings are reported and thereby made transparent to the community at large. The court will generally only interfere when a proceeding is reported in a manner that may jeopardise the defendant’s right to a fair trial or where wider concerns arise as to the administration of the criminal justice process. The reporting of proceedings in the present case has not yet engaged either of those principles.
“I therefore do not propose to make any direction or suggestion to news media organisations as to how they should report the case in the future.”
It is important to note all media, including the NZ Herald, is already exercising discretion about reporting certain details of what the defence said was the method used by Pauline Hanna.
During a cross-examination last week, defence lawyer Ron Mansfield KC paused to tell Justice Lang the evidence he was about to refer to was sensitive, and to urge discretion from the media.
The judge agreed discretion should be shown.
For the remainder of that cross-examination, media – including the NZ Herald in its live coverage – reported very limited details, omitting specifics about the method the defence says Hanna used to hang herself.
Read Shayne Currie’s full Media Insider report here: Philip Polkinghorne trial media coverage - open justice principles prevail over suicide experts’ concerns.
Polkinghorne trial to resume with evidence from forensic accountant of couple’s finances
Vera Alves
Welcome to the Herald’s live coverage of the second day of the fourth week of the murder trial of Philip Polkinghorne, the Remuera eye surgeon accused of killing his wife Pauline Hanna and staging the scene to look like a suicide. His defence maintains his overworked, stressed and despondent wife hanged herself.
The Crown case continues. The jury has not heard how many more witnesses are to be called by the prosecution before the defence begins offering evidence.
Today we will resume at 10am, when prosecutor Brian Dickey will continue leading the evidence of police forensic accountant Margaret Skilton.
She was called late yesterday afternoon and her evidence consisted of a preamble outlining the various accounts and trusts Hanna and Polkinghorne held, either jointly or on their own.
The jury heard she produced a report delivering into their transactions over the last five years and regular payees, and today it is expected Dickey will lead her into that report and what it revealed about the lives of the eye surgeon and District Health Board (DHB) manager before her untimely death on or around Easter Monday 2021.
The tempo of a trial ebbs and flows and yesterday was a slower day. As the evidence wore on, the public gallery began to empty and was only about half full, a rarity in this keenly watched trial.
A meth tester and laboratory workers gave evidence about how methamphetamine at “concerning” levels was found on a heat pump in a consultation room used by Polkinghorne, among others. Ron Mansfield KC’s cross-examination focused on the potential for other sources of contamination for the meth and questions about the rigour of the testing.
Earlier, the jury heard how Polkinghorne was seen on CCTV with two others inside Auckland Eye, his ophthalmology practice, the weekend before a meth pipe was found in a laser room in October 2020. Mansfield again raised the fact a teenage patient had been in that room just prior to that weekend.
A witness, Auckland Eye operations manager Tracey Molloy, revealed Polkinghorne was in the clinic until 10pm on the Saturday night before the pipe was found. Mansfield raised the fact Polkinghorne often worked at the clinic on weekends or after hours.
🎧 LISTEN | Accused: The Polkinghorne Trial
Vera Alves
STORY CONTINUES
Forensic accountant Margaret Skilton, who works in the police financial crime unit, was the only witness called to the High Court at Auckland this morning.
She gave a detailed rundown of an analysis she conducted of five-and-a-half years of banking records from the defendant.
The spending totals spanned January 2016 to March 2021, the month before Hanna’s death.
A chart shown to jurors showed that $106,130 was transferred to Ashton between February 2019 and January 2021. Police found the pair together at a posh Mt Cook chalet three weeks after Hanna’s death.
Polkinghorne was also found to have transferred:
The total amount transferred to the women was $296,645, Skilton determined.
Multiple witnesses have said Hanna knew that her husband would see sex workers.
In a recorded conversation with her brother and niece, she acknowledged that the couple engaged in group sex together in Australia at Polkinghorne’s urging and said one overseas sex worker named Elle liked her better than Polkinghorne.
But she also said, according to multiple witnesses, that she would not tolerate Polkinghorne having a long-term affair with someone, especially in Auckland.
She had contacted a private investigator about an infidelity investigation and told friends she was considering leaving him but needed to get her finances in order.
Hanna’s niece testified earlier that Hanna had feared Polkinghorne had swindled her assets so that she no longer had access to them.
The forensic accountant’s analysis noted that the defendant transferred nearly $310,000 from the Hanna Polkinghorne Trust Account to other bank accounts that he had sole control over.
Hanna’s Papatoetoe home, which she purchased before the couple’s marriage, was sold in July 2020 for more than $1 million. Those proceeds also went to Polkinghorne’s accounts, the witness said.
Of the $439,450 in cash withdrawals tallied by the accountant, $198,350 had been removed from cash machines in Australia. Travel records indicated that neither Polkinghorne nor Hanna were in Australia during many of the withdrawals, the expert said.
Defence lawyer Ron Mansfield KC has not yet had an opportunity to cross-examine Skilton about the spending charts.
Crown prosecutor Brian Dickey will continue questioning the accountant this afternoon, when the trial resumes before Justice Graham Lang and the jury.
Craig Kapitan is an Auckland-based journalist covering courts and justice. He joined the Herald in 2021 and has reported on courts since 2002 in three newsrooms in the US and New Zealand.
The Herald will be covering the case in a daily podcast, Accused: The Polkinghorne Trial. You can follow the podcast at iHeartRadio, Apple Podcasts, Spotify, through The Front Page feed, or wherever you get your podcasts.