THE multi-millionairess former Hong Kong resident being hunted internationally for her alleged role as head of one of the world's biggest drug distribution networks is believed to be in Thailand. Lee Chau-ping, who is known as the ''ice queen'', is thought to have fled from Canada using false identity documents as soon as police began closing in. Lee, 37, had made her home in Vancouver after police in Hong Kong and China smashed a drugs ring in a series of raids last year in the territory and on the mainland in which more than 50 people were arrested. She was charged in Canada this week in her absence with nine counts of possessing the proceeds of crime following a 14-month investigation by Canadian, Hong Kong and Chinese officers. Canadian officials have come under fire for allowing her to settle last year as an entrepreneur running a fast food restaurant in Vancouver. Sources in Canada revealed yesterday that Lee applied for immigration status at the Canadian Mission in Seattle, but officers there failed to check her background. Had they done so, they would have discovered that she was wanted in both Hong Kong and China. ''It was a breakdown in the system. She was well-known as a big drug-trafficker in Asia. If they had checked with police in Hong Kong she would not have been allowed in,'' said one source. Lee left two children, aged eight and seven, in Canada. They are being looked after by her parents who emigrated there several years ago. Her divorced husband also lives there. None of them is believed to have known about her alleged illegal activities. Lee has had property and cash to the value of HK$30 million including 10 flats in Kowloon Tong and Tin Shui Wai and Hong Kong bank accounts containing HK$4.2 million frozen by officers in the Narcotics Bureau. In Canada, police seized assets belonging to Lee worth C$6.6 million (HK$37.89 million) including houses in Vancouver and Richmond, two Toyota cars and jewellery worth C$1.4 million. They have also frozen three bank accounts in Lee's name. Lee is believed to be living in Thailand on some of the huge sums of money she accumulated.