BC court strikes fraudulent conveyance claim in Chinese investor dispute

The same day they filed, the investors registered certificates of pending litigation against two West Vancouver properties owned by the son and his mother, arguing the misappropriated funds had gone toward acquiring or maintaining the homes. The son and his mother applied to cancel those certificates and to have the fraudulent conveyance claim thrown out entirely.

Justice Branch agreed on both counts. The court found the pleadings lacked the specific factual link – such as when the properties were acquired or how the funds allegedly reached them – required to support a claim to an interest in land under the Land Title Act. On the fraudulent conveyance claim itself, the court noted that the investors’ own representative admitted at his examination for discovery that he had no knowledge, facts, or information supporting the fraudulent conveyance allegations. Justice Branch found that “the fraudulent conveyance claim is bound to fail,” adding that the theory rested on nothing more than the assumption that funds must have moved to Canada simply because the company had no remaining assets in China.

The court declined to bar the investors from filing further certificates of pending litigation, despite finding their litigation conduct confused and disorganized, saying it had not been serious enough to justify that step.

Other parts of the case survive, including the investors’ bid to enforce the Chinese judgments against the businessman and to hold the son’s mother jointly liable for them. A trial on those remaining issues is scheduled for two weeks starting July 12, 2027.

For wealth advisors working with clients who hold cross-border assets or who invest through foreign entities, the ruling is a reminder that certificates of pending litigation are not a low-cost way to freeze property while a case develops. Courts expect a properly particularized factual basis connecting alleged misconduct to specific real estate before such a certificate can stand, and speculation about where money may have gone will not clear that bar.