China Mobile lays claim to Vancouver homes it says were bought with fraud funds
- The state-run telecoms giant says in a Canadian lawsuit that former executive Li Xiangdong and his wife are living in Vancouver, having fled China in 2010
- It accuses Li of fraudulent schemes that cost the company about 400 million yuan (US$63 million), and says some of the money was used to buy real estate in BC
Telecoms giant China Mobile is suing a former senior executive it accuses of fleeing to Canada amid an investigation into alleged fraud that it says cost hundreds of millions of yuan, and is laying claim to Vancouver real estate it believes he bought with the proceeds.
Li Xiangdong – whom mainland media nicknamed the “godfather of music” for his dominant role in the musical ringtone and download sector – has appeared on Chinese wanted lists since at least 2015.
He is alleged to have engaged in a series of “fraudulent schemes” from 2004 to 2009 in which he secretly owned and controlled companies that were awarded multimillion-yuan contracts with state-controlled China Mobile.
The allegations against Li, 56, and co-defendant Hong Yao – said to be his wife – are not proven and have not been tested in court.
“[China Mobile Sichuan] recently discovered that Li and Yao are residing in British Columbia and have used proceeds described in this claim (the ‘Unjust Gains’) to purchase real estate and other assets located in British Columbia,” it says.
