Several defendants have responded to a multimillion-dollar lawsuit over an alleged fraudulent immigration scheme.

The suit was launched in Yukon Supreme Court on March 20 by two immigration companies, Ningbo Zhelun Overseas Immigration Services Co. Ltd. (Zhelun) and Mega International Labour and Immigration Services Inc.

It claims the companies and their clients, prospective Canadian immigrants from China, are owed more than $4 million for unsuccessful immigration applications.

The suit names 11 defendants including USA-Canada International Investment Inc. (UCII); Xunfan Jiang and Yeuming Zeng, listed as directors of UCII; First Choice Immigration; and Ajay Sehgal, an immigration consultant and owner and operator of First Choice.

But Jiang, Zeng, Sehgal and First Choice have responded to the suit, denying its claims.

Jiang and Zeng recently filed a statement of defence claiming they were wrongly listed as defendants in the suit.

The statement explains that UCII was incorporated in 1998 then dissolved and restored in 2008.

It states UCII 1998 and UCII 2008 are two separate entities. While the husband and wife were directors of UCII 1998, they say they have nothing to do with UCII 2008, the company named in the suit.

“They have never done, or authorized anyone else to do, or have any relationship with any wrong alleged in the claim,” reads the statement.

In their statement of defence, Sehgal and First Choice claim that at no time were they part of an agreement with UCII involving the alleged wrongdoing in the suit.

Rather, First Choice provided immigration services to UCII limited to reviewing certain permanent residence applications for errors or omissions.

According to this agreement, the statement says, First Choice was not required to review the final versions of draft applications or submit them to Immigration, Refugees and Citizenship Canada.

It also says they did not prepare, receive nor review Yukon Business Nomination Program (YBNP) applications but only received what appeared to be valid Yukon certificates of nomination as part of the draft applications.

“These defendants did not make any misrepresentations to the plaintiffs, either negligently, fraudulently or otherwise,” reads the statement.

The lawsuit claims that in November 2013, Tzuchun (Joyce) Chang, a director of UCII, approached Zhelun with the YBNP as an easy way for clients to immigrate to Canada.

According to the YNBP website, through the program, nominees receive a two-year work permit to start their own business in the Yukon or purchase an existing business.

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

Zhelun claims Chang said it would only take one month to qualify for the program, there would be no immigration reviews, and it did not require many of the mandatory requirements for other nomination programs including language requirements.

But Jason Mackey, a spokesperson for the Department of Education, told the Star in April that requirements to qualify for the program include language competency, a minimum of three years’ experience in entrepreneurship or business management, five years’ relevant work experience, and a minimum $500,000 net worth and $300,000 in liquid assets.

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.

According to the suit, in June 2015, many of the clients who applied for visas or permanent residency were contacted by Canadian Immigration Services for screening interviews.

Zhelun estimates clients provided UCII with about $4,054,838 by this time.

The following month, about 60 applicants had interviews that were unsuccessful, and were told that the certificates of nomination allegedly issued by the Yukon government were false or invalid.

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

Zhelun claims they entered into an agreement with UCII in October 2014 where UCII agreed to refund Zhelum and their clients if they were unsuccessful in getting immigration documents.

But Zhelun says UCII explained they could not repay the amount upon request, as it had been invested in various businesses.

The suit asks for 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.”

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

Zhelun filed a similar but separate lawsuit over the issue in November 2015 in the B.C. Supreme Court.

It alleges they are owed $11,900,718 paid by 90 clients to UCII as well as general and special damages.