When you involve China, things get complicated

Here is an interesting read on a lawyer who is under investigation with respect to BC real estate transactions and Chinese investors. It’s a bit complicated, but it’s worth a read. B.C. Law Society takes over part of Richmond real estate lawyer’s practice. There is a lot going on here, but here is one of the points that I find most fascinating:

In a B.C. Supreme Court civil suit, Guo has accused two former employees of conspiring to steal over $7.5 million from her trust account with forged cheques, laundering funds in a B.C. casino, and ultimately sending cash to China. Guo claims, in court documents, that the employees are jailed in China.

Court transcripts show that in September, Xiao Yong Sun’s lawyer examined Guo in efforts to discover her interests in various investment companies and properties, and also asked Guo to provide documents to prove her former employees are jailed in China.

The lawyer claims that her employees were responsible for the theft of funds, which they shipped off to China. I don’t know about you, but this sounds awfully convenient to me. Finding them in China will undoubtedly be a daunting task as I suspect that the Chinese government will be somewhat less than cooperative when it comes to assisting a Canadian court on a local criminal or civil case.

I guess the moral here is that due diligence is required when you are doing a deal. Perhaps that should include doing some due diligence on your lawyer. It will be interesting to see what the outcome of all this is if the newspaper follows up on it in the future.