UPDATE 1-China's CITIC Bank tries to seize real estate assets in Canada

Tue Jun 28, 2016 4:29am EDT
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(Adds Chinese Foreign Ministry comment)

By Julie Gordon

VANCOUVER, June 27 (Reuters) - China CITIC Bank Corp Ltd 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 ($5.58 million), along with other assets, according to the lawsuit, which was filed in the Supreme Court of British Columbia in Vancouver on Friday.

The defendant, Shibiao Yan, owns three multi-million dollar properties in a Vancouver suburb and lives in a C$3 million Vancouver 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 was 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 finalize 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.   Continued...