Former immigration consultant unable to pay Yellowknife businesses in civil suit
Liang Chen said he loses $3K more than he makes each month, due to other lawsuits and expenses
A judge has ruled Liang Chen does not have the financial means to repay two local businesses that successfully sued him.
A local interior design business and a construction company sued Chen for a total of just over $62,000 in civil court.
The lawsuit stems from when Chen was working as an immigration consultant. He was hired to help a Chinese immigrant looking to open a high-end gift shop in Yellowknife.
Both the interior design business and construction company were not fully paid for a significant amount of completed work on the store.
During a payment hearing at the Yellowknife courthouse on Monday, Chen said, due to other lawsuits and expenses, he doesn't have the means to pay back the two applicants. According to Chen, he loses $3,000 more than he makes a month.
Chen currently works as a substitute teacher for the Yellowknife Catholic School Board, which brings in about $2,000 a month.
Chen said he was considering declaring bankruptcy, but had not done so yet.
Assets and liabilities
Chen represented himself at the hearing, where he provided several financial documents including tax returns and bank account records.
Prosecutor Christopher Buchanan questioned Chen about his personal finances and the finances of two companies that he used to run, which were named in the lawsuit
There were also a series of questions about a property on Madeline Lake that is owned by a company he was once a director for.
The property was purchased in 2019 by Aurora World Holdings Inc., and the company was dissolved in 2021.
The company received $110,000 to purchase the property through a transfer or loan from Helio's Holdings (NWT) Inc.
Chen at one time owned half the shares for Helio's Holdings (NWT) Inc., while a family member owned the other half. He eventually sold his shares to that family member to pay off other debts.
Judge Garth Malakoe said he didn't see the connection and the line of questioning ended there.
Not over yet
Buchanan requested that Chen be put on a plan to pay back both business owners $50 a month.
But Malakoe said with Chen's current financial situation, he didn't see how that was possible.
"That doesn't mean these judgments go away," Malakoe told Chen.
Buchanan told CBC the prosecution has up to 10 years to provide relevant information and hold another payment hearing.
In mid-March a warrant was issued for Chen because he missed a court appearance on this matter.
Chen told CBC News before the payment hearing on Monday that this was due to a misunderstanding with a missed voicemail as first reported by Cabin Radio.
Chen said he turned himself in to the police once he saw in the news there was a warrant for him.