Yellowknife businessman pleads guilty to fraud
Liang Chen is also facing civil judgments totalling more than $400,000
A Yellowknife businessman has pleaded guilty to defrauding the Business Development Bank of Canada (BDC).
According to court records, Liang Chen, 45, entered the plea during a court appearance on April 22.
He is accused of defrauding the BDC, a Crown corporation that provides financing and other services to entrepreneurs, and Chinese businessman Shengteng Wang each of more than $5,000. No plea was entered in the fraud charge related to Wang.
Cabin Radio first reported Chen's guilty plea.
The RCMP allege that Chen helped Wang set up a business in Yellowknife. They say he then applied for and received a loan of $250,000 from BDC against the business without telling Wang. Chen was charged with the two counts of fraud over $5,000 in October, shortly after the business, Northern Sky Films, shut down.
In a separate civil suit, Wang won a $156,961 judgment against Chen. According to court records Wang has yet to collect any of that money.
Another Chinese client Chen worked with also successfully sued him for $213,583. The TD Bank and two contractors Chen hired won judgments totalling just over $100,000.
Chen is scheduled to be sentenced for fraud on July 25.