{"id":9360,"date":"2017-05-02T14:39:37","date_gmt":"2017-05-02T14:39:37","guid":{"rendered":"https:\/\/www.investmentimmigration.com\/?p=9360"},"modified":"2019-02-12T14:02:28","modified_gmt":"2019-02-12T19:02:28","slug":"canadas-business-immigration-programs-plagued-fraud","status":"publish","type":"post","link":"https:\/\/www.investmentimmigration.com\/canadas-business-immigration-programs-plagued-fraud\/","title":{"rendered":"Canada\u2019s Business Immigration Programs Plagued by Fraud"},"content":{"rendered":"

Two civil lawsuits recently filed in British Columbia and the Yukon involving\u00a0Canada business immigration programs<\/a>, highlight how provincial business streams in Canada continue to be affected by fraud and mismanagement.<\/p>\n

\"Canada\u2019sThe cases surround 90 Chinese citizens who paid a total of $11.9 million and were denied entry to Canada. They allege fake or invalid immigration documents were issued by government after millions of dollars were invested in a Yukon based Hotel under the\u00a0Yukon Business Nominee Program<\/a>.<\/p>\n

The Yukon program offers an initial two-year Canada visa leading to Canadian permanent residence to qualified entrepreneurs chosen to help boost the territory\u2019s economy.<\/p>\n

The Yukon case was filed in March 2017 by Ningbo Zhelun Overseas Immigration Service Co. Ltd. (\u201cZhelun\u201d), a China-based immigration services company, against Richmond, B.C.-based USA-Canada International Investment Inc. (\u201cUCII\u201d).<\/p>\n

In July 2015, 60 candidates were called for an interview with Canadian authorities in Hong Kong, according to Zhelun, and told their documents, allegedly issued by the Yukon government, were fake or invalid.<\/p>\n

Applicants were informed their immigration applications were denied and they would not be allowed to reapply for five years under Canada\u2019s inadmissibility rules.<\/p>\n

Under agreement, candidate funds, including an \u2018application cost\u2019 of $50,000, was paid to UCII. The lawsuit seeks to recover the $11.9 million, with Zhelun saying UCII accepted the money was returnable if the immigration applications failed. None of the allegations have been proven in court.<\/p>\n

Not a New Problem<\/h3>\n

Fraud involving investment based immigration programs is not a new problem for\u00a0Canada immigration<\/a>\u00a0authorities.<\/p>\n

Fraud is an issue dating back to the start of Canada\u2019s investment immigration industry in the 1980s.<\/p>\n

More than 20 years ago, in 1995, James DeRosa submitted a paper at the request of Canadian federal authorities titled \u2018The Immigrant Investor Program: Cleaning up Canada\u2019s Act\u2019, outlining many of the issues then associated with Canada\u2019s\u00a0provincial business immigration programs<\/a>.<\/p>\n

It featured an audit of the 1990s\u00a0Manitoba business program<\/a>\u00a0which the government paused due to several proven irregularities that appear directly applicable to the latest case involving the Yukon program. The audit uncovered a significant number of problems concerning related party transactions.<\/p>\n

The 1995 paper goes on to highlight the numerous instances of embezzlement, mismanagement of funds, overcharging and misrepresentation of information under provincial business immigration programs.<\/p>\n

All of this makes a clear case for the continuing need for the utmost scrutiny of business immigration programs at the earliest stages by provincial authorities. It also highlights that despite significant progress being made for the imposition of industry safeguards since 1995, cases like the Yukon hotel are still emerging in 2017.<\/p>\n

The Quebec Model<\/h3>\n

When investment-based immigration programs are structured with proper compliance safeguards, they benefit the economy. This is the case with the\u00a0Quebec Immigrant Investor Program<\/a>, a stream that has imposed layers of due diligence mechanisms over the past 30 years and is Canada\u2019s leading business immigration program. The QIIP is the only passive provincial investment immigration program in Canada.<\/p>\n

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