Fraud charge laid against Yellowknife businessman ensnared in multiple lawsuits
A Yellowknife businessman has been charged with fraud over $5,000.
Liang Chen, 44, is accused of defrauding a Chinese businessman whom he helped set up a theatre and virtual reality gaming business in the city.
Police announced Chen's arrest earlier this month, shortly after Shengtang Wang shut down his Northern Sky Films business, alleging a "bad guy" had used his company to take out a large bank loan. The RCMP allege that Chen helped Wang set up the business and then, without telling Wang, took out a $250,000 loan against the business. Police allege Chen then used the money for himself.
Wang told CBC he had no knowledge of the loan until the loan provider, the Business Development Bank of Canada, foreclosed on it. Wang said Chen quietly kept up payments on the loan until the two men had a falling out.
Though this is the first time his business dealings have landed him in criminal court, Chen has been in civil court many times in recent years.
A number of people he did business with have filed lawsuits against him alleging he failed to pay bills or took money from them.
Though most of them won judgments against him, they have yet to collect any money.
Chen convinced the court he is unable to repay them because he has no money.
Chen's first court appearance on the fraud charge is scheduled for Nov. 14.
