Whangārei Store Owner on Trial for Migrant Exploitation and Blackmail

The trial of former Whangārei bargain store owner Snehal Suresh Patel has laid bare a disturbing pattern of alleged migrant exploitation, revealing how vulnerable people can be trapped in modern slavery conditions right under our noses. Patel and his company, Osh Enterprises, face 15 charges of exploiting migrant workers at Coin Saver stores, with Patel himself facing an additional charge of blackmail, in a judge-alone trial before Judge Peter Davey in the Whangārei District Court.

How were migrant workers allegedly exploited at Coin Saver?

Crown prosecutor Danette Cole, presenting for the Ministry of Business, Innovation and Employment (MBIE), detailed a seven-year regime of abuse. Patel allegedly underpaid multiple workers by more than $1 million, housed them in appalling conditions, and secretly filmed two employees to use as leverage if they spoke to authorities.

The workers, who did not know Patel before arriving in Aotearoa, were in the country on student visas or working for other businesses. They desperately needed a work sponsor to stay.

To remain in New Zealand, the complainants required a path to residency. Mr Patel offered them assistance with obtaining residency by offering them employment with Osh Enterprises.

Cole told the court.

This dynamic highlights a systemic flaw in our immigration framework. When employers hold the key to a person's residency, the power imbalance is ripe for abuse. These workers had no family or close friends in New Zealand, making it incredibly difficult to speak out about their employment conditions.

What were the living and working conditions?

When workers accepted roles and were told accommodation would be provided, they likely did not imagine they would be sleeping on mattresses on the floor of a storeroom. The court heard that the assigned accommodation was a back room with a small cooking stove on the bench and a small toilet and shower. Another worker who arrived from India was also forced to share this cramped space, and was not paid for his first three weeks because he was supposedly in training.

One employee allegedly lived in the storeroom for two years. Another couple, brought on when a new store opened, were shown a storeroom with no shower facilities. They had to buy their own bedding and travel to a different store just to wash.

The working hours were gruelling. Employees worked from 8am until 8pm, seven days a week. After their shifts, they were allegedly forced to help build two new stores until 2am without pay. Cole told the court that Patel threatened to cancel their visas if they refused to do the construction work.

How much wages were allegedly withheld?

Workers regularly clocked up to 100 hours a week but were only paid for 40 or 60 hours, with no overtime. They worked public holidays without receiving time-and-a-half rates, and no accurate timesheets were kept. In one particularly callous instance, an employee who was sick for a month had his sick leave deducted from his final pay upon leaving the company. Another worker was paid $2800 in holiday leave for a trip to India, but Patel allegedly demanded the money back upon his return.

MBIE calculates that Osh Enterprises owes the workers a combined total of $994,465 in underpaid wages and a further $301,649 in holiday pay. These are not just accounting errors; they represent the systematic stripping of dignity and livelihood from people who came here seeking a better life.

What happened when the investigation began?

A mutual friend eventually noticed the excessive hours and contacted the Labour Department. However, the path to justice was obstructed. Patel had CCTV and audio set up around the store, allegedly spying on his employees' interactions. When Patel learned of the investigation, he organised a dinner with his staff. He advised them that if the Labour Inspectorate called, they were not to speak without him present. He also allegedly instructed them to submit false hours and create the illusion of time off.

The investigation dragged on for several years, and the employees eventually left. But the alleged abuse did not stop there. Patel reportedly suspected a former employee had tipped off the authorities. He then allegedly threatened to release intimate videos he had secretly filmed of this former employee to the Indian community. This interaction was captured on CCTV and will be presented as evidence in court.

The former employee reported the blackmail to the police. During a search of Patel's home, police discovered a substantial amount of cash.

What is the defence's position?

Defence lawyer Bill Nabney provided a brief opening statement, maintaining that the workers were paid exactly what they were entitled to. Regarding the intimate recordings, Nabney acknowledged that a discussion took place between Patel and the former employee, but denied that Patel ever threatened to release them.

The Crown plans to call several witnesses, including nearby shop owners who observed the employees' extreme working hours.

Why does this case matter for New Zealand's labour laws?

This trial is a stark reminder that exploitation can happen in plain sight. It underscores the urgent need for stronger protections for migrant workers, particularly those whose residency status is tied to their employer. When visa sponsorship becomes a weapon of control, our immigration system is failing the very people it should be protecting. Pragmatic reforms, such as allowing migrant workers to change employers more easily, could significantly reduce the power imbalance that allows such alleged abuse to persist.

What charges does Snehal Patel face?

Snehal Patel and his company, Osh Enterprises, face 15 charges of exploiting migrant workers. Patel personally faces one additional charge of blackmail.

How much money is Osh Enterprises alleged to owe in underpaid wages?

The Ministry of Business, Innovation and Employment alleges Osh Enterprises owes the workers a combined $994,465 in underpaid wages and $301,649 in unpaid holiday pay.

What were the living conditions for the migrant workers?

Workers were allegedly housed in store storerooms, sleeping on mattresses on the floor, with limited cooking and washing facilities. Some had to travel to other stores just to shower.