Advertisement
Advertisement
A luxury home in Surrey, BC, said to have been purchased with illicit funds taken out of China by Yan Shibiao. The home was listed at a price of about C$3.4million with a local realtor. Photo: mikegrahame.com

China’s CITIC Bank tries to seize luxury homes in Vancouver, saying buyer fled mainland with illicit cash

China CITIC Bank Corp has launched a Canadian lawsuit to try to seize the assets of a Chinese citizen the bank claims took out a multi-million dollar loan in China then fled to Canada, the lender’s Vancouver-based lawyer said on Monday.

The bank is looking to seize numerous Vancouver-area homes, valued at some C$7.3 million (US$5.58 million), along with other assets, according to the lawsuit, which was filed in the Supreme Court of British Columbia in Vancouver on June 24.

The defendant, Yan Shibiao, owns three multi-million dollar properties in a Vancouver suburb and resides in a luxury C$3 million Vancouver-area home owned by his wife, according to court documents.

China is in the midst of a massive corruption crackdown and has stepped up efforts to find fugitives it says are hiding stolen assets abroad. The lawsuit comes amid a debate about the role foreign money, particularly from China, has played in Vancouver’s property boom.

“The person involved left China with a large debt owed,” said Christine Duhaime, a lawyer who represents China CITIC Bank in the case, adding that she is not aware of any criminal charges against the man.

Yan could not immediately be reached for comment. He has not yet filed a response to the lawsuit and the claims have not been proven in court.

China has been working with Canada for years to finalise a deal on the return of ill-gotten assets seized from those suspected of economic crimes. The agreement was originally announced in July 2013 and has not yet been ratified.

But it is rare for Chinese banks to use Canadian courts to pursue those who have left the country.

According to the lawsuit, China CITIC Bank is seeking repayment for a line of credit worth 50 million yuan, or roughly US$7.5 million, taken out by a Chinese lumber company and personally guaranteed by Yan, who was the company’s majority shareholder at the time.

Vancouver residents have questioned the legitimacy of foreign funds invested in the city’s real estate market and have urged authorities to do more to scrutinise their origin.

Housing prices in the west coast city have jumped 30 per cent in the last year.

Post