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For Some Chinese Fleeing Debt or Prosecution, Canada Beckons

Scams make news in China but BC officials say review of foreign investors program isn't related.

By Jeremy J. Nuttall, 21 Nov 2012, TheTyee.ca

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Beijing, China: Scammers form shell companies, take out loans and skip to places like Canada eager for foreign investors.

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According to media reports from China numerous business owners fleeing creditors are heading abroad, many to Canada via immigrant investor programs, such as the one the British Columbia government announced last week it would review.

One report quoted an agent claiming to have helped dozens of such applicants.

The reports, in a variety of publications and dating back as far as one year, said dozens of wealthy business owners from China have been leaving the country to get away from creditors or even impending corruption charges.

Such entrepreneurs even take out millions in loans from Chinese banks or loan sharks using shell companies before heading overseas and leaving bankruptcy notices in their wake, said one article.

Last week the B.C. government announced a suspension of the Fast Track nomination option in the business stream of the province's nomination program, but said that was to review the program to see if it's accomplishing its goals.

Applicants can come to the province on an investment between $200,000 and $400,000 with a $125,000 deposit, but have obligations to meet, such as starting a business or helping to expand an existing one.

The program allows them to be nominated for permanent resident status without having to wait two years and complete their nominee agreement first.

The province said so far 141 people have taken advantage of the program, but only 26 have completed their end of the deal since 2007.

If agreements are not honoured applicants forfeit their deposit, but are allowed to keep their permanent resident status.

'Canada best option': Chinese emigration consultant

In an email, representatives from the B.C. Ministry of Jobs, Tourism and Skills Training insisted the review "is not related to events in China."

"We are temporarily suspending the PNP Fast Track optionĀ over the next 60 days -- we want to ensure that this program is achieving the same successes as the regular nominee process," said the ministry.

The review of the program is expected to be finished within 60 days.

The Tyee contacted a company named in a report by Chinese state media publication the Global Times, which said it interviewed one agency that had helped 60 applicants come to Canada through investor programs.

The report quoted a Beijing-based emigration consultant claiming to know two customers who racked up loans through their companies, moved the money offshore, declared bankruptcy and were in Canada within months using immigrant investor programs.

When contacted by The Tyee, Aoji Immigration Company spokesperson Zhang Jian denied the information in the Global Times report and said he had no record of the person quoted in HR files.

Zhang refused to divulge how many people his company had helped immigrate to Canada through investor immigrant programs calling the information a "business secret."

But he said Canada is a preferred destination for wealthy business people wishing to leave China and his company often helps them navigate provincial nominee programs.

"I have great confidence in the future of Chinese people's immigration to Canada," said Zhang.

"I believe Canada is the best option for Chinese investors and immigrants as it is stable and safe."

He said most of those who do make use of fast track programs prefer to move to Vancouver or Toronto, stressing his company does not engage in falsifying documents.

Fleeing from debts

Citizenship and Immigration Canada said it has temporarily closed its federal immigrant investment program, and said provinces are now in charge of any such programs.

As China faces an economic slowdown, more business owners have been missing as they flee not just banks, but black market lenders.

Many of those owners are from Wenzhou, one of the first economic engines of China since economic reforms were instituted.

Chinese magazine Caixin published a piece earlier this year suggesting a death sentence for a business woman convicted of corruption was meant to throw a scare into the private lending sector in an effort to prevent more loan defaults.

B.C. has been home to a number of high profile Chinese financial criminals, such as Gao Shan, who returned to China on his own volition during the summer and Lai Chanxing, who was deported back to China by Canadian authorities in 2011.

Both men had been accused of embezzling or illegally earning millions of dollars while in China before coming to Vancouver.  [Tyee]

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18  Comments:

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  • Rolly-polly

    26 weeks ago

    Ah yes.

    Our money hungryness has lead us to just blindly accept people who may be fraudsters. Nice.

  • reality_check

    26 weeks ago

    In the MEANtime, my wife cannot visit me!

    I don't know many cuntries (sorry, not all the people, but some programs) that allow mafia members and criminals because they have money and assets to come and live here, and my wife whom I wanted to come to visit me (because unusual circumstances made it impossible for me to come live in her country) was prohibited to come since she was a thread! My wife has no criminal records, but she does not have hundreds of thousands of dollars! I suggested to the custom's officers to subject her to a polygraph test, but no that is not part of their analysis! SHE absolutely has NO interest of coming to live here! NONE! I know that for some brainwashed Canadians that is hard to believe, but it is true! And, after what happened to her, She has less than no interest to live here, if that is possible! Me too!

  • reality_check

    26 weeks ago

    sorry ... a threat ...

    Oops!

  • Hakuin

    26 weeks ago

    More than a few

    "Entrepreneur investors" category immigrants have no intention of settling in Canada. They expose just enough of their off-shored money to open a front business so they qualify under Canadian rules and work frantically in the background to enter their real destination; the USA. Easy to spot them by small concerns like customer-less restaurants and small time import/export outfits with minimum inventory.

  • igbymac

    26 weeks ago

    We have few problems, it seems

    with allowing persons to put their money offshore whenever it conveniences them; or with corporations following the opportunity for gain to foreign lands.

    Hell, now we sit here all indignant that some folks with money are trying to work the system to gain citizenship when it goes on in a massive scale as a matter of routine.

    In Canada or the US there is the constant complaint of the foreign invasion. Meanwhile, McDonalds and KFC boast of making inroads into SE Asia and effectively overturning the Asian culture with the most toxic and dangerous foods in the world. Similarly, Mr Harper is paraded around as the world's leading political diplomat for his work in selling off the farm to the bidder of his liking....

    It's not that this story isn't important, it is simply that the atrocities are so much larger in scale at the state and corporate level. Yet most of us continue to routinely support both the corporate Giants and many of us consider our political involvement is crystallized in the complicit voting process.

    reality_check, I 100% hear and understand your complaint. It is a complete affront to the family values rhetoric about the sanctity of marriage. Alas, it is driven home when one in your position realizes by the school of bureaucratic hard knocks just how completely one is considered an asset to state, either in the other country or your own.

    One simply has to ponder the reason we are all "registered" at birth not unlike a motor vehicle.

  • Bigpig

    26 weeks ago

    When the bottom line is the bottom line

    When making money is the priority, money becomes your boss, your leader, your government. In Canada we are ruled by money.

  • Doug Park

    26 weeks ago

    No surprise

    In the PRC (like many other countries, especially "Communist" or "ex-Communist" states like the PRC or Russian Federation) almost no one with a lot of money made it legally. Why? Because there is no way to make lots of money legally in those states, as there is no solid, impartial rule of law, ability to get permits without bribes, or even ways to borrow money other than (as mentioned in the article) through "illegal" lenders. The kleptocratic rulers, their families and friends grab everything they can. Others who are able go along for the ride, in the same way. There is a reason all the "Communist" Party Central Committee members and their families are incredibly rich. As for fraud charges and the resulting show trials and executions, those are laid not because someone committed a crime (which as noted is true of almost everyone with lots of money, including those making and enforcing the rules) but because they fell out of favour somehow.

    My point is: Someone having been accused of a crime in the PRC does not necessarily bother me, since the entire economic system there is based on cronyism, black marketeering and corruption. Obviously, most wealthy people in the PRC got that way through some inside pull or other supposedly illegal means. Frankly, I am more concerned about whether they follow the law once in Canada, which I imagine many will since we actually have at least some basis for achieving success through legal means. Of course, others will probably not follow the law, and it is those I say we should focus on, based on Canadian law rather than what passes for it in the PRC.

  • Rolly-polly

    26 weeks ago

    yup

    Give us your scammers, your scum, your insolvent masses yearning to hide ill gotten funds.

  • igbymac

    26 weeks ago

    Doug Park

    Despite the local game is rigged to benefit the psychopathic, you think the people here who make fortunes are earning an an honest? My gawd, it is the same everywhere. Your best chance of success, there or here, is to be born on third base and raised to believe you hit a triple.

    What you consider 'legal means' is entirely subjective. You don't condone open gifts or bribes, despite their more relative openness elsewhere, yet most of the dealings going down here are still quid pro quo. You simply do not recognize it most likely because you are not in the loop nor invited to join.

    The rules are for the underclass, mate. :)

  • Skywalker

    26 weeks ago

    igbymac

    This is worthy of framing.

    "Your best chance of success, there or here, is to be born on third base and raised to believe you hit a triple."

    "Strength of character is trumped by loads of money', must be from "Thoughts of Chairman Harper".

  • Robercarter

    25 weeks ago

    We're hooked on their cash

    Immigrants are speculating on Vancouver RE with money we have no idea how it was made. We are now the #1 money laundering capital of North America. But never mind. Just readjust blinders and take the money.

  • Hakuin

    25 weeks ago

    pure food and clean water trumps money

    Never lose sight of what we actually have of value in the world here. No one in China can put anything in their mouth with any confidence unless they are so rich they can import it through reliable means. And even then they fear counterfeits.

    The richest, most bloated high Party official is lower than the homeless on the street in Vancouver in this regard. Wonder if that makes them hate us?

  • whynot

    25 weeks ago

    cost of coming here

    so the corrupt "businessperson" and spouse and children can all have permanent resident status in Canada for a single payment of $125,000. No doubt cheap by their standards. I wish it was true they were all on their way to the US. Our governments, federal and provincial, must seem laughably naive.

  • dave49

    25 weeks ago

    Customerless restaurants

    Haikun, the one I wondered about was an instant takeout Chinese restaurant at Cambie and West Broadway (SW corner). Is about two years, I only ever saw one customer in it. I concluded it was a deliberate money loser to launder money. However, the immigration angle makes sense.

    The Americans are much tougher - if your business fails, you lose your green card. Not much incentive here in BC.

  • Hakuin

    25 weeks ago

  • Terri Robson

    25 weeks ago

    TAX HAVEN

    A recent study shows that Canada is at the top of the pile when it comes to shell games, just two up from Nigeria.
    www.publicintelligence.net/global-shell-games/

    countries were ranked in terms of compliance levels,greater value the higher countries level of compliance with international regulators. We are at app. 5%, third from the bottom.

  • Rolly-polly

    24 weeks ago

    No cyndee

    The richest party officials have stolen Billions....yes BILLIONS of dollars

  • JeriSkaggs

    23 weeks ago

    I believe Canada is the best

    I believe Canada is the best option for Chinese investors and immigrants as it is stable and safe.

    http://www.kimmillergroup.com/