By Sam Cooper | Vancouver Sun
In a claim filed April 11, Antrim Balanced Mortgage Fund, GCA Capital and Vancouver businessman Todd Elliott Gray allege that Paul Li and his wife Susie Li, aka Qing Ling Liang, forged documents to take out three mortgages against a home in the 3000-block of Nanaimo St. that was actually owned by Paul Li’s parents. They allegedly took a $1.4-million mortgage from Antrim at 6.95 per cent interest, a $400,000 home loan from GCA at 11.75 per cent interest, and a mortgage worth $150,000 from Todd Gray, at 18 per cent annual interest.
Paul Li’s parents, Jing Wen Li and Jian Al Li, are also named as part of an alleged “conspiracy”. Jing Wen Li and Jian Al Li live with Paul Li in Fort St. James, and they are “restauranteurs”, legal filings say. Susie Li lives in the Nanaimo home.
Proceeds of the Antrim loan were used to pay off an existing $800,000 mortgage on the property, which had been taken out in February 2016 by Jing Wen Li and Jian Al Li, the claim says. They took out the existing mortgage with Neighbourhood Holding Company, legal filings say, after they, Paul Li and Susie Li met with a consultant and a mortgage broker named in the case.
Legal filings say the remainder of the $1.4-million Antrim loan was paid into a joint bank account for Jing Wen Li and Jian Al Li; fee payments were made to several consultants or mortgage brokers named in the case; and payments were made to other defendants, identified as Yan Jun Tan, Cheng Yi Zhou, Chi Ya Chen and Tei Cheung Kam.
Paul Li and his wife then took out mortgages from GCA and Todd Gray, legal filings say, with proceeds paid into Jing Wen Li and Jian Al Li’s bank account, after which payments were made to other defendants.
Only several payments were made from defendants on the three separate mortgage loans, legal filings say, before pre-authorized cheques were returned for non-sufficient funds. The three lenders joined together in foreclosure actions against the Nanaimo property in March 2017.
Jing Wen Li and Jian Al Li responded, and filed a counter-claim seeking a declaration that the three mortgages are void and unenforceable, legal filings say.
Jing Wen Li and Jian Al Li said that the three home loans on the Nanaimo property were entered into “by persons who used forged identifications.”
Jing Wen Li and Jian Al Li acknowledged receiving large deposits into their joint bank account when each of the three mortgages were taken out, but in legal filings said they “understood the funds related to a group investment pool in which Paul Li had asked them to participate … and (they) were obligated to transfer the money to various such investors … based on instructions from Paul Li and or his wife, Susie Liang, the funds were transferred to these third parties.”
The plaintiffs allege that “by knowingly obtaining the benefit of some, or all, of the mortgage proceeds through the fraudulent acts of Paul Li and Susie Li … the predominant intention of the defendants was entering into a conspiracy … further by knowingly obtaining the benefit of a complete payout and discharge of the Neighbourhood mortgage the predominant intention of the defendants Jian Li and Jing Li was to injure the plaintiffs.”
Antrim has lost $1.48 million plus interest accruing at 6.95 per cent, GCA has lost $427,000 with interest accruing at 11.75 per cent, and Todd Gray has lost about $150,000 with interest accruing at 18 per cent per year, their claim says.
The claim says the plaintiffs should be re-paid their losses, and “it would be unjust and unconscionable for the defendants to retain the mortgage proceeds.”
Defendants named in the April 11 B.C. Supreme Court claim have not yet filed responses.