Condo developer loses bid to delay extradition hearing
Almost four years after condo developer Mark John Chandler was arrested on allegations of defrauding real estate investors in Los Angeles, the latest chapter of his fight against extradition to the U.S. unfolded Friday in the B.C. Court of Appeal.
The full-day hearing began with Chandler’s lawyer attempting, unsuccessfully, to have the proceedings postponed until after the resolution of B.C. regulatory enforcement against the developer for more recent allegations of real estate misconduct.
Chandler’s alleged “fraudulent investment scheme” in California dates to 2009, according to the FBI evidence relied upon in the extradition request. But in the years before and after his dealings south of the border, Chandler had run afoul of real estate regulators in B.C.
Chandler, 55, faces allegations of misconduct from B.C.’s real estate watchdog, including accusations he mishandled more than $10 million of homebuyers’ deposits for units in a Langley condo project called Murrayville House.
Earlier this month, B.C.’s Superintendent of Real Estate posted a notice of hearing for Chandler in connection with Murrayville, with a date to be determined. Chandler marketed the condo development, and several pre-sale contracts were executed between 2014 and 2016. According to the regulator, their investigation found evidence “the developer had pre-sold individual units to multiple unrelated purchasers.”
Chandler was initially arrested in connection with the U.S. charges in May 2015. Last March, after several hearings on the matter, the B.C. Supreme Court ruled Chandler should be committed for extradition to the United States. Chandler’s lawyer immediately filed an appeal.
When that appeal was heard Friday at the B.C. Court of Appeal judges, Chandler’s lawyer, Michael Bolton, asked for an adjournment until after the B.C. regulator’s hearing against Chandler.
John Gibb-Carsley, a lawyer representing Attorney General of Canada, opposed an adjournment, arguing the B.C. regulatory enforcement concerning Murrayville “is a distinct issue” from the U.S. criminal allegations, “and there is no judicial efficiency to be gained by postponing what is before the court today.”
After a brief break of a few minutes, the panel of judges denied an adjournment.
The hearing continued with Bolton arguing that B.C. Supreme Court Justice Jennifer Duncan, who ordered Chandler’s committal for extradition last March, erred when she did not admit into evidence documents that Bolton said would have helped establish Chandler’s continued genuine efforts to develop the South Hill Street property in Los Angeles.
Bolton also argued the Supreme Court judge made an error by relying on evidence from U.S. authorities, including evidence alleging Chandler had forged a cheque, purportedly showing a large sum payable to Chandler, and then showed the fake cheque to an associate in an attempt to entice his investment.
The forged cheque evidence, Bolton said, “is not a logical thing.”
“Why in the world, if you’re trying to borrow money from somebody would you show them that you actually have tremendous equity?” Bolton said. “It doesn’t make any sense at all.”
Justice Susan Griffin interjected: “It makes a lot of sense. That’s a classic con. Isn’t it? You say: ‘Look, I have other people willing to invest, and this is safe because other smart people are investing.’ I’m not saying it was a con here, but it’s not inconsistent.”
Gibb-Carsley said Bolton’s submissions Friday were “a preview of defence submissions at the trial in the (U.S.).”
“He raises defences, he asks this court and he asked the extradition judge, to prefer his version of events,” Gibb-Carsley said. “These are all tasks not assigned to a judge here in Canada.”
“We have a presumption of reliability” for the evidence provided by the U.S., Gibb-Carsley said, and the task of assessing the reliability of that evidence is the job of a U.S. court.
“Extradition hearings are not trials. They are intended to be expeditious procedures, to determine whether a trial should be held,” Gibb-Carsley said.
The Court of Appeal judges reserved their decision.