It comes ahead of the Government extending the law to all public places.
Steven Taiatini was hit and killed by a car in Ōpōtiki last year.
Two stolen vehicles and a stolen motorbike were also recovered.
"You do not know where that money comes from."
Officials say the strategy "may improve public confidence in the response to gangs" but comes with big risks.
Minister of Justice (Firearms) Nicole McKee says the measures are "needed to ensure public safety".
"He should look at himself," Willie Jackson says. "I mean, he's one of the reasons why things didn't go too well for us in the polls."
The former Police Minister said the Labour Government "could have been tougher on crime".
"They don't care, they're just laughing about it."
"Gang members aren't just going to hand over their patches."
"Most police officers will be supportive of the idea of getting tougher on gangs."
It comes after the Government announced it was cracking down on gangs with new legislation.
Social worker Eugene Ryder says it's the same old, same old that has been tried unsuccessfully since the 70s.
"The evidence shows it doesn't work."
It's the first time Police have applied this type of action to restrained assets.
The Government is introducing legislation to ban all gang insignia in public places and create greater powers to stop criminal gangs from gathering in groups and communicating.
"These are deeply complex issues and there's no easy answer to them."
A defence lawyer told court security "f**cking arrest them all".
Officers will "have a visible presence" around Whenua Tapu Cemetery.
The licenced firearms dealer was charged with multiple offences including the unlawful selling of firearms and ammunition.