Alleged money-launderers linked to $2.4-million Salt Spring Island home claim lack of evidence
Credit to Author: Gordon Hoekstra| Date: Tue, 18 Feb 2020 23:56:41 +0000
The defendants in a civil suit by the province to seize a Salt Spring Island property allegedly linked to a $200-million-plus international stock fraud say the case should be dismissed for lack of evidence and abuse of process.
The B.C. Civil Forfeiture Office’s lawsuit filed in B.C. Supreme Court on Dec. 11 alleges a Salt Spring Island property at 391 Baker Rd. is the proceeds of crime and was used to launder money.
The lawsuit says the money to pay for the then-$1.155-million house in 2014 and undertake $526,000 in renovations came from a US$164 million pump-and-dump stock fraud that used shell companies to hide the true and beneficial owners of shares.
Accused in the civil forfeiture lawsuit in British Columbia are Skye Lee, also known as Geordie Lee; Alicia Lee, spouse of Skye; Beresford Estates, which owns the house; and Vincent Manalastas, the sole director of Beresford Estates, believed to be living in the Philippines.
In their three separate responses filed Feb. 14, Skye Lee, Alicia Lee and Beresford deny all allegations.
Manalastas has not filed a response.
There have been no criminal charges filed in B.C. but civil forfeiture cases can be brought when there are none. The threshold for proving a civil forfeiture case is lower than in a criminal proceeding, a balance of probabilities rather than beyond a reasonable doubt.
In its response, Beresford Estates says that because the house was purchased in 2014, it could not and was not acquired as a result of the alleged unlawful activity, which the civil forfeiture office alleges to have started after that time.
The civil forfeiture’s offices claim lists the stock fraud as taking place between 2015 and 2018.
However, a criminal prosecution in the U.S. District Court of Massachusetts of one of the stock fraud’s key players, Roger Knox, lists the stock fraud activity as taking place between 2013 and 2018.
Knox pleaded guilty last month to charges that he engaged with others in a massive global securities fraud scheme that netted proceeds of approximately US$164 million.
Knox, 49, will be sentenced in April.
The response to the B.C. civil forfeiture suit states that a family member of the one of the defendants, who resides outside Canada, beneficially owns and controls Beresford Estates.
Prior to the alleged unlawful scheme, Beresford began to look for property in Canada to invest in, according to the response, filed by lawyer Patrick J. Sullivan with Whitelaw Twining Law Corp., who is representing both the Lees and Beresford Estates.
“The family member beneficially owns Beresford. The family member was comfortable with Skye Lee living in the property. Mr. Lee and Ms. Lee have no interest in the property,” states the response.
The response does not say who the family member is or where they live outside of Canada.
The Lees and Beresford all say they have no knowledge of the stock fraud and did not benefit from it.
In his response, Skye Lee, acknowledges he lives at the Salt Spring Island property. Alicia Lee says she does not.
The international stock fraud allegedly linked to the Salt Spring Island house was uncovered by an U.S. Securities and Exchange Investigation in 2018.