B.C. seeks default judgment against man allegedly linked to fraud

The province is seeking a default judgment against a man believed to live in the Philippines and allegedly involved in a money-laundering scheme linked to a $200-million international stock fraud.

In an application filed in B.C. Supreme Court on Oct. 8, the B.C. Civil Forfeiture Office has asked the court to grant judgment against Vincent Manalastas on his rights related to a $2.5-million Salt Spring Island home. In its court action, the civil forfeiture office alleges the property at 391 Baker Rd. is the proceeds of crime and was used to launder money.

The listed owner of the property is Beresford Estates Inc., of which Manalastas is the sole director.

According to an earlier court order, Manalastas was deemed to have been served notice of the civil claim. Neither the civil forfeiture office nor the lawyer for the office has received any communication from Manalastas, who has also not responded in court to the forfeiture claim.

As the timeline to respond to the court action has elapsed, the province argues that by default, Manalastas has admitted to the facts they put forward, that the property is the proceeds of crime and used to launder money.

The civil forfeiture suit says the money to pay for the then$1.155 million house in 2014 and undertake $526,000 in renovations came from a US$164 million pump-anddump stock fraud that used shell companies to hide the true and beneficial owners of shares.

Also accused in the B.C. civil forfeiture suit are Skye Lee, also known as Geordie Lee, and Alicia Lee, Geordie's spouse, who live on the Salt Spring property, according to court documents.

In earlier responses in court, Geordie Lee and Alicia Lee denied all wrongdoing.

There have been no criminal charges filed in B.C. but civil forfeiture cases can be brought when there are none. The threshold for proving a civil forfeiture case is lower than in a criminal proceeding, a balance of probabilities rather than beyond a reasonable doubt.

The Lees' response to the B.C. civil forfeiture suit states that a family member of one of the defendants, who resides outside Canada, beneficially owns and controls Beresford Estates.

Before the alleged unlawful scheme, Beresford began to look for property in Canada to invest in, according to the response, filed by lawyer Patrick J. Sullivan with Whitelaw Twining Law Corp., who is representing both the Lees and Beresford Estates. The response does not say who the family member is or where they live.

The international stock fraud allegedly linked to the Salt Spring house was uncovered by a U.S. Securities and Exchange investigation in 2018.