A lawsuit has been lodged in the Yukon Supreme Court involving prospective Chinese immigrants, a Yukon nomination program, and a Whitehorse hotel.

The plaintiffs, two immigration companies, claim they and their clients are owed millions of dollars for investments in a fraudulent immigration scheme.

The suit filed by Ningbo Zhelun Overseas Immigration Services Co. Ltd. (Zhelun) and Mega International Labour and Immigration Services Inc. (Mega) names 11 defendants.

They include USA-Canada International Investment Inc. (UCII), Tzuchun Chang, Yukon Resources Investment Inc., and Elite Hotel and Travel Ltd.

According to the statement of claim filed with the court on March 20, Zhelun and UCII established a business relationship in 2012.

Under that arrangement, Zhelun would promote and market UCII services to people in China looking to move to Canada. Through an arrangement with Zhelun, Mega also sent clients to UCII.

UCII, based in Richmond, B.C., provides services and support in relation to visa and immigration applications to Canada.

In November 2013, Tzuchun (Joyce) Chang, a director of UCII, approached Zhelun with the Yukon Business Nomination Program (YBNP) as an easy way that client-investors could immigrate to Canada.

The program’s website states that the YBNP is, “designed to attract and retain skilled international entrepreneurs to add diversity and innovation to Yukon’s economy.”

Through the program, nominees receive a two-year work permit to start their own businesses in the Yukon or purchase an existing Yukon business.

After the permit ends, the Yukon will support them in applications for permanent residency if they meet certain requirements.

According to the lawsuit, Chang said it would only take one month to qualify for the program, there would be no immigration reviews, and many of the mandatory requirements for Provincial Nomination Programs such as language competency did not apply.

But Jason Mackey, a spokesperson for the territorial Department of Education, told the Star there are a number of requirements to qualify for the program.

These include language competency, a minimum of three years’ experience in entrepreneurship or business management, and five years’ relevant work experience.

Other requirements are a minimum $500,000 net worth and $300,000 in liquid assets.

As well, applicants can’t have been refused immigration by the Canadian government or have applications with other provincial or territorial nomination programs.

After the two-year work permit ends, to qualify for permanent residency support, nominees must settle in the Yukon and demonstrate an extended $300,000 capital investment in their business.

Mackey said YBNP staff follow up during the process to make sure nominees are on track, and that ultimately the decision on whether a nominee is successful in becoming a permanent resident is up to Immigration, Refugees and Citizenship Canada.

Between late 2014 and the summer of 2015, Zhelun promoted the YBNP and recruited applicants.

They estimate that by this time, clients provided UCII with about $4,054,838.

In June 2015, many of their clients who applied for visas or permanent residency were contacted by Canadian immigration services asking them to travel to Hong Kong for screening interviews.

They were reassured by UCII that “these interviews were part of the immigration application process,” and, “that there was no cause for alarm.”

But the following month, about 60 applicants had interviews that were unsuccessful.

They were told that the certificates of nomination allegedly issued by the Yukon government were false or invalid.

They were also notified their applications for permanent residency cards or visas were denied, and that they may not be able to re-apply to immigrate to or visit Canada for five years.

“The applicants who attended the scheduled interviews were humiliated and embarrassed as a result of the failed Hong Kong interviews and failing to obtain their documents that would lead to their permanent residency cards or visas,” reads the statement of claim.

Following these failed interviews, Zhelun says they were told that UCII was looking into the matter and had sent letters to the Yukon government.

They were also reassured that the certificates issued were valid and that clients could re-apply for permanent residency cards or visas.

Frustrated by UCII’s response, Zhelun says they demanded multiple times that UCII repay the investments, but they have yet to do so.

According to the statement of claim, Zhelun and UCII completed an agreement in October 2014. Under it, UCII agreed to refund Zhelun and their clients if they were unsuccessful in getting immigration documents.

But Zhelun claims that Chang and UCII explained they were not able to repay the amount upon request, as it had been invested in various businesses in accordance with the YBNP.

Among these businesses are the Elite Hotel (2-0-2 Motor Inn), located on Jarvis Street in downtown Whitehorse, and Yukon Resources Investment Inc.

The statement of claim says Chang was a director of Yukon Resources at the time, and the Yukon Corporate Online Registry reveals that she is also a director of the Elite Hotel.

Zhelun and Mega are now seeking an injunction to prevent the defendants from “further encumbering, dealing with, or disposing of assets and properties where the plaintiffs or their investments proceeds were used.”

They’re also seeking several declarations that defendants breached the agreement, owed the plaintiffs a fiduciary duty, and failed to act with reasonable care in regards to the nomination program applications and investments.

According to the Vancouver Sun, Zhelun filed a similar but separate lawsuit in November 2016 in the B.C. Supreme Court seeking to recover $11,900,718 they claim 90 clients paid to UCII, as well as general and special damages.

Defendants have yet to respond to the claims, which have not been proven in court.

The lawsuit adds that, in the summer of 2016, the Canadian Border Services Agency and RCMP investigated and confiscated materials in relation to this matter.