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B.C. man accused of stealing $200K in 2019 CRA phone scam has fled Canada, court documents say – CBC.ca

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A former resident of B.C.’s Lower Mainland allegedly fled Canada after posting a $10,000 release bond following his arrest by immigration officials investigating a scam that saw victims send more than $1 million to fraudsters posing as Canada Revenue Agency employees.

Even though he is still believed to be in China, Haoran Charlie Xue, 27, was charged with nine criminal offences last month in connection with a multi-jurisdictional investigation into an organized crime group that began in 2019.

The details of Xue’s disappearance are contained in court documents filed in recent months as part of a parallel, ongoing civil battle over the proceeds of the sale of Xue’s former Burnaby, B.C., home, last assessed at $1.9 million.

B.C.’s director of civil forfeiture wants to keep the money as the proceeds of crime, claiming Xue is the real owner, despite the fact the home was registered to his father.

The RCMP’s Federal and Serious Organized Crime unit announced the charges against Xue last month.

He is accused of defrauding seven victims out of nearly $200,000, although RCMP claim the total number of Canadians taken in the group’s scam was closer to 70 and the amount they lost nearer to $1 million.

According to a copy of the charges obtained by CBC, Xue is also charged with using the stolen identities of five other people in order to commit fraud on behalf of himself and his associates.

And he allegedly posed as a man named David Franklin in order to rent a Richmond UPS box where victims were allegedly told to send their cash, police say.

‘You are just looking to talk to somebody’

One of the alleged victims named in the charges spoke with the CBC.

The Calgary woman — whom the CBC has agreed not to identify — said a man who called himself “Mark” called her in May 2019, claiming to be an officer with RBC in Toronto.

One of the alleged victims of Haoran Xue claims she was vulnerable when a stranger called her and persuaded her she was in trouble with her bank. (graphbottles/Shutterstock)

The 67-year-old said she lives alone.

“Sometimes, I think when you’re very vulnerable, you are just looking to talk to somebody, And when somebody calls, you pick up the phone to answer it, not knowing that you will face a problem with that person,” she said.

“And they are very smart at convincing you, that’s another thing. And there are people like me who get convinced. That’s my downside.”

“Mark” told her to send $15,000, she said. He appeared to know her address, directing her to a nearby UPS location.

The woman said she is now amazed a bank teller let her take out the money.

She also doesn’t understand why it took RCMP so long to complete an investigation into an accused who is now far beyond the reach of Canadian authorities.

No show for September 2019 hearing

According to the civil suit, RCMP began investigating Xue in June 2019 as part of a probe into organized crime groups posing as a software company, a bank and Canada Revenue Agency (CRA) employees. It says victims were told to send cash and gift cards to mailboxes in B.C. and Ontario.

Court documents claim Xue transferred $1 million in and out of his bank accounts.

A CBC journalist visits Haoran Xue’s house in 2019 when he was first named in a civil suit related to a CRA scam. No one was home and a heap of mail was piled on the doorstep. (Maggie MacPherson/CBC)

Investigators tailed him for several weeks and ultimately seized a cellphone that they said contained the names of victims and the addresses to which they were told to send specified amounts of money.

The RCMP arrested and released Xue in 2019. As a result of the fraud investigation, the Canada Border Services Agency (CBSA) also began an immigration investigation.

According to court documents, the CBSA arrested Xue and then released him on a $10,000 bond pending a hearing set for September 2019.

The documents say he fled Canada around Aug. 15, 2019, about the same time his father listed the Burnaby house for sale.

‘A respected contributing member of his community’

A B.C. Supreme Court judge has issued a default order against Xue, who hasn’t filed any response to the director of civil forfeiture’s claims.

But Xue’s father — Zenggang Xue — has retained a B.C. lawyer and filed a response to both the initial claim and a recent application in pursuit of documents from banks, a real estate company and the CBSA.

B.C.’s director of civil forfeiture wants to seize this home, which belongs to Haoran Xue, a man charged as part of an RCMP probe into phone scams. (Maggie MacPherson/CBC)

Zenggang Xue said he owns a successful propane exchange business in a city 1,000 kilometres west of Beijing and that he paid for his son to come to Canada in 2012 to obtain an education at a private college.

The father said he visited Canada several times and was impressed with “the local quality of life.” He said he decided to use his savings “to accommodate his son while he attended school, generating rental income if possible to offset the mortgage, to possibly retire at this property or simply sell it on the market for profit.”

According to his court filings, Zenggang Xue was spending his summer in B.C., in 2019 when RCMP raided his home while investigating his son. He said he was unaware of the allegations before that.

“Zenggang is a respected contributing member of his community in the City of Yongji, who never engaged in, or condoned anything, that is contrary to law,” Zenggang Xue said, in his response to the civil claim.

“Zenggang and his family earned their living honestly by hard work and by their habit of savings which is the only source of funds in purchasing the house.”

The father noted there is no allegation of wrongdoing on his part and called the application for documents related to the financing of the home “a fishing expedition.”

In May, a judge sided with B.C.’s director of civil forfeiture in ordering the release of the documents in question. 

The proceeds of the home will be held by the court until a trial on the merits of the civil claim is complete.

None of the criminal allegations have been proven in court.

Watch: CBC Marketplace investigates the CRA phone scam:

Who’s behind one of the biggest cyber-crime schemes in Canadian history? David Common travels to India to catch the fraudsters. 22:31

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Indian diplomats ‘clearly on notice’ after high commissioner expulsion: Joly

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OTTAWA – Canada isn’t ruling out expelling additional diplomats from India, Foreign Affairs Minister Mélanie Joly suggested Friday following bombshell allegations that Indian diplomats in Toronto, Ottawa and Vancouver were involved in state-sponsored violence targeting Canadian citizens.

Canada expelled the Indian high commissioner and five other diplomats on Monday and when asked at a news conference in Montreal Friday if any more expulsions would follow Joly did not say no.

“They’re clearly on notice,” she said.

The minister said that Canada will not tolerate any foreign diplomats that put the lives of Canadians at risk.

A year ago Prime Minister Justin Trudeau said Canada had clear evidence that Indian agents were connected to the murder of Sikh leader Hardeep Singh Nijjar in British Columbia in June 2023. The allegations suggest India is trying to snuff out a movement to create an independent Sikh state in India known as Khalistan.

On Oct. 14, RCMP Commissioner Mike Duheme rocked the diplomatic relationship further, saying the national police force had launched a special investigative unit last February to investigate multiple cases of extortion, coercion and violence, including murder, linked to agents of the Indian government.

In more than a dozen cases, Canadian citizens were warned about threats to their personal safety and Duheme said the national police force was speaking out to try and disrupt what it deemed a serious threat to public safety.

The six diplomats expelled are persons of interest in the cases, with allegations that diplomats used their position to collect information on Canadians in the pro-Khalistan movement and then pass that on to criminal gangs who targeted the individuals directly.

India has denied the allegations and expelled six Canadian diplomats from New Delhi in return.

Joly said Friday the allegations were extraordinary in Canada.

“That level of transnational repression cannot happen on Canadian soil,” she said. “We’ve seen it elsewhere in Europe, Russia has done that in Germany and the U.K., but we needed to stand firm on this issue.”

The allegations will be studied in more detail by the House of Commons national security committee following a vote by the committee Friday. Joly and Duheme will both be asked to appear, as will Public Safety Minister Dominic LeBlanc

NDP MP Alistair MacGregor, who put forward the motion to launch the study, said the fact the RCMP came out with such “explosive revelations” underscores how serious the situation is.

“The RCMP made a point that they were doing this because some individuals in Canada had their lives directly in danger and the threat reached such a level they felt compelled to ignore the traditional way of going through the judicial process and make these accusations public,” he said.

Canada’s allegations were followed Thursday by charges announced by the U.S. Justice Department against an Indian government employee who is accused in an alleged foiled plot to kill a Sikh separatist leader living in New York City.

U.S. authorities say Vikash Yadav directed the New York plot from India. He faces murder-for-hire charges in a planned killing that prosecutors have previously said was meant to precede a string of other politically motivated murders in the United States and Canada.

The Indian government didn’t immediately provide comment on the U.S. charge.

American-Canadian lawyer Gurpatwant Singh Pannun, a lawyer and dual Canadian and U.S. citizen, said in a statement that he was the target of the alleged murder plot in New York. He said he was targeted because he is a lawyer for Sikhs for Justice and was helping to organize votes in a non-binding referendum on the creation of an independent Sikh state.

Nijjar helped organize a similar referendum in B.C. prior to his death.

The House committee Friday also voted to call Brampton Mayor Patrick Brown to testify, as well as other candidates from the 2022 Conservative leadership contest. A report released in June by the National Security and Intelligence Committee of Parliamentarians (NSICOP) contains a redacted paragraph that details alleged Indian interference in a Conservative leadership contest. A specific year is not mentioned.

The Conservatives have said they have been given no information about any such interference.

The committee is also now considering a second NDP motion calling for all party leaders to apply for a top-secret security clearance within 30 days, along with a Conservative amendment to demand Prime Minister Justin Trudeau release the names of parliamentarians listed in top-secret documents as being engaged in or at-risk of foreign interference.

At the foreign interference inquiry this week Trudeau said Conservative Leader Pierre Poilievre refused to get the clearance that would allow him to access the names of Conservatives from those documents, while Poilievre accused Trudeau of lying and demanded he make all the names public.

Trudeau acknowledged the documents include the names of members of other parties, including the Liberals, but said if Poilievre doesn’t get the clearance that is needed to know who is at risk he can’t take any steps to prevent or limit the impact.

Manitoba Conservative MP Raquel Dancho told the committee that Poilievre getting a briefing would be a “gag order” against criticizing the government on foreign interference.

“We can put this to bed, it’s rapidly devolving into some McCarthy witch-hunt as a result of the prime minister’s actions and we can clear this up today by releasing the names,” Dancho said.

This report by The Canadian Press was first published Oct. 18, 2024.



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B.C. faces a rain-soaked election day after a campaign drenched in negativity

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VANCOUVER – British Columbians go to the polls on Saturday after a too-close-to-call campaign that saw David Eby’s New Democrats and John Rustad’s B.C. Conservatives tangle over housing, health care and the overdose crisis — as well as plastic straws and a billionaire’s billboards.

Forecasters say election day will be soaked in several parts of the province by heavy rain from an atmospheric river system.

But the campaign has already been drenched in negativity, with Eby and Rustad each devoted to telling British Columbians why they shouldn’t vote for the other.

The NDP’s election platform mentions Rustad more than 50 times, compared to only 29 times for Eby, while the B.C. Conservative platform names Eby 50 times, and Rustad only 11 times.

“I hope we never see another election like this,” Eby said this week in Nanaimo, describing the tone of the campaign where he felt compelled to tell voters about controversial public statements made by Rustad and some of his candidates.

“We don’t call people who are gay ‘groomers,'” he said. “We don’t tell Indigenous people that what they experienced in residential schools wasn’t real. We don’t propose that health-care professionals be put in front of an international tribunal similar to the trial of the Nazis called Nuremberg 2.0.”

Rustad, who campaigned in Nanaimo on the same day Eby visited the Vancouver Island city, said the NDP leader has consistently attempted to shift focus away from what he says are the real issues facing the province — mismanagement of the economy, the crumbling health-care system and the ongoing drug overdose crisis that has resulted in more than 15,000 deaths since 2016.

“I don’t know why, I guess as premier he thinks it’s OK to be lying to the people of B.C.,” said Rustad. “The premier of a province like B.C. should be able to be out, being straight up with people and telling them the truth as opposed to lies.”

Regardless of the outcome, the election will go down as a sea change for B.C. politics, with the Conservatives poised to either form government or become the official opposition, after the implosion of the BC United party under Kevin Falcon, who halted his party’s campaign to support Rustad and avoid centre-right vote splitting.

Polls have put the NDP and the B.C. Conservatives locked in a close battle. It’s a remarkable turnaround for the Conservatives, who won less than two per cent of the vote in the last provincial election.

Eby and Rustad spent Friday making last-ditch pitches for support in vote-rich Metro Vancouver.

Eby started in Coquitlam, while B.C. Conservative Leader John Rustad was scheduled to be in North Vancouver.

“We have left nothing on the table,” said Eby, adding every vote will count Saturday. “I have really no regrets about the campaign.”

On Friday, the Conservatives said that if elected they would launch “a full public inquiry” into the use of taxpayer money to buy drugs on the dark web.

That is a reference to a so-called “compassion club” that was operated by the Vancouver-based Drug User Liberation Front to buy drugs including methamphetamine, cocaine and heroin, test it for safety and then sell it to its members.

The club was ultimately shut down and the group’s founders arrested and charged with trafficking.

“This inquiry will seek to uncover who knew what, when they knew it, and what actions were or weren’t taken by the New Democrats, including Premier David Eby,” the party said in a statement.

Rustad was not available to reporters on Friday, but he was holding photo opportunities in Metro Vancouver.

Green Leader Sonia Furstenau was in Victoria, where she is looking to capture a seat in the NDP stronghold of Victoria-Beacon Hill. She has acknowledged the Greens won’t win the overall election, but is hoping to retain a presence in the legislature where the party currently has two members.

The campaign’s only televised debate saw Furstenau tell voters that Eby and Rustad were more closely aligned than people may believe on issues including support for the fossil fuel industry and placing people with mental health and addiction issues into involuntary care.

The month-long campaign has featured regular controversies for the Conservatives surrounding past comments by Rustad and his candidates.

Rustad dropped several potential candidates before the start of the official campaigning period over extreme views posted on social media.

But during the campaign he continued to support Surrey-South candidate Brent Chapman, who called Palestinian children “inbred” and “time bombs” in a 2015 Facebook post.

Eby mentioned Chapman during visits to two mosques in Surrey.

“John Rustad and the B.C. Conservatives are standing with that candidate,” he said at the Guilford Islamic Centre. “They should have got rid of him.”

Eby said the NDP are running two Muslim candidates in the election, including candidate Haroon Ghaffar in Surrey-South against Chapman.

“It’s important to have diverse candidates in the legislature,” said Eby, adding B.C. has yet to elect a Muslim.

Eby faced tough questions from people at the mosque about teaching sex education at schools and the rise of Islamophobia.

Rustad also stood by North Coast-Haida Gwaii candidate Chris Sankey, who suggested vaccines caused AIDS by posting about “Vaccine Acquired Immunodeficiency Syndrome” during the COVID-19 pandemic.

Then there was Vancouver billionaire Chip Wilson, co-founder of the Lululemon athletic clothing line.

Wilson injected himself into the campaign with a series of anti-NDP billboards outside his waterfront Vancouver home, located in Eby’s Vancouver-Point Grey riding.

Eby and the NDP embraced the moment, saying Eby was on the side of ordinary people in B.C. struggling to make ends meet and not the owner of a home assessed at more than $81 million.

Rustad said he supported entrepreneurs like Wilson, but they couldn’t expect a break on their property taxes.

Rustad’s campaign promise to reverse a ban on plastic straws prompted Eby to begrudgingly agree that “paper straws suck,” but he suggested the B.C. Conservative leader was trying to stir up controversy by diverting attention from major issues facing the province.

Election day coincides with an atmospheric river system that is dumping heavy rain across much of the province.

Furstenau used the weather event to highlight her party’s climate promises, saying the Greens are the only party that offers a serious response to the climate crisis.

“It’s very interesting the timing of an atmospheric river arriving right on the moment of this election campaign, an election campaign where we have one party led by a climate denier and another party led by a climate delayer,” she said.

This report by The Canadian Press was first published Oct. 18, 2024.



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AFN votes on way forward after $47.8 billion child welfare reform deal is defeated

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OTTAWA – The executive team from the Assembly of First Nations will meet in the coming days to discuss how to proceed with new negotiations for a child welfare reform deal after chiefs voted against the government’s proposed $47.8 billion agreement at a meeting in Calgary Thursday.

AFN National Chief Cindy Woodhouse Nepinak, who had helped negotiate the deal and pushed for it to be approved, was blunt in her assessment of the outcome in her closing remarks to the special chiefs assembly Friday.

“We also recognize the success of the campaign that defeated this resolution. You spoke with passion, and you convinced the majority to vote against this $47.8-billion national agreement,” she said.

“There is no getting around the fact that this agreement was too much of a threat to the status quo, to the industry that has been built on taking First Nations children from their families.”

Cindy Blackstock, executive director of the First Nations Child and Family Caring Society which helped launch a discrimination case against Canada that led to the deal, said “that’s an unfortunate characterization of the chiefs taking a look at the agreement with their own experts and own legal staff and making an informed decision that’s best for them.”

“I respect the National Chief, and I look forward to kind of working with her and everyone to make sure that we get this across the finish line,” Blackstock said.

The defeated deal was struck between Canada, the Chiefs of Ontario, Nishnawbe Aski Nation and the Assembly of First Nations in July after a nearly two-decades-long legal fight over the federal government’s underfunding of on-reserve child welfare services.

The Canadian Human Rights Tribunal said that was discriminatory because it meant kids living on reserve were given fewer services than those living off reserve.

The tribunal tasked Canada with reaching an agreement with First Nations to reform the system, and also with compensating children who were torn from their families and put in foster care.

The $47.8 billion agreement was to cover 10 years of funding for First Nations to take control over their own child welfare services from the federal government, create a body to deal with complaints and set aside money for prevention, among others.

Before the deal was announced in July, three members of the AFN’s executive team wrote letters to the national chief saying they feared the deal was being negotiated in secret, and asked for a change in course. They also said the AFN was attempting to sideline the First Nations Child and Family Caring Society from negotiations.

Those concerns largely remained when the deal was announced in a closed-door meeting at the AFN’s last gathering, with chiefs questioning how the reforms will work on the ground, and service providers saying their funding levels will be significantly cut which would impact their ability to do their work effectively.

Blackstock found support from 267 out of 414 chiefs who voted against a resolution calling for the deal to be approved.

Squamish Nation chairperson Khelsilem introduced a resolution Friday calling for a new negotiation mandate from chiefs.

“This is a lesson for the Assembly of First Nations, for the staff and legal, for the advisers, for the portfolio holder who has worked on this deal,” he said.

“The way we got here was not the way we should have done this. There’s a better way forward.”

His resolution, and another one from child welfare advocate and proxy chief for Skawahlook First Nation, Judy Wilson, called for the creation of a children’s chiefs’ commission comprised of leadership from all regions in the country to negotiate a new deal and provide oversight, along with a new legal team.

It also calls for chiefs to be given at least 90 days to review an agreement before voting on it, with the document to be made available in both official languages.

Khelsilem said the new negotiation mandate was developed with about 50 leaders from across the country, and hopes it will set a positive path forward in the best interest of kids in care after a fairly testy special chiefs assembly. He also said the new mandate will address “flaws” highlighted by chiefs across the country, and will ensure there is more transparency.

“We didn’t have to be in a situation where we had to vote down a flawed agreement and then create a direction to be able to get this back on track,” he said to chiefs.

“We didn’t have to be here if the process that was used to create the (final settlement agreement) was a meaningful process that meaningfully respected and consulted First Nations, that allowed for meaningful dialogue to improve that agreement.”

In a statement, a spokesperson for the minister of Indigenous Services said Canada worked closely with First Nations on this deal, and as it was being amended.

“The agreement that chiefs in assembly rejected yesterday is the final product of those close negotiations,” Jennifer Kozelj said.

“Canada remains steadfast in its commitment to reform the First Nations child and family services program so that children grow up knowing who they are and where they belong.”

Blackstock said that Indigenous Services Minister Patty Hajdu or Prime Minister Justin Trudeau ought to have been at the gathering in Calgary if they stood by the agreement.

In a statement Friday, the Assembly of First Nations Quebec-Labrador said they’re grateful for the work that has been done to date, but that chiefs need to work together to amend the deal so it respects diversity of communities and eliminates systemic discrimination.

“As chiefs, we have a sacred responsibility to protect our children and families for the next seven generations,” said interim regional chief Lance Haymond.

Blackstock says that even though the deal was defeated, it doesn’t mean they’re starting from the bottom.

“We have so much to build on, including the draft final settlement agreement,” she said. “This is a reset to ensure that First Nations kids all succeed.”

This report by The Canadian Press was first published Oct. 18, 2024.



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