Liberal MP Geng Tan hand-delivered a letter to a top official at the Canadian embassy in Beijing and personally spoke to Chinese authorities on behalf of a Liberal Party donor who has been charged with money laundering and the fraudulent sale of hundreds of millions of dollars in securities to Chinese citizens.
Chinese-Canadian businessman Xiao Hua Gong, also known as Edward Gong, was arrested in Toronto last week and the Ontario Securities Commission (OSC) has charged him with fraud over $5,000, possession of property obtained by crime, laundering proceeds of crime and uttering a forged document. None of the allegations have been proven in court.
On June 1, Mr. Tan acted as an intermediary for Mr. Gong, who at the time was under criminal investigation by the RCMP, Ontario Securities Commission [OSC] and China’s Ministry of Public Security in connection with a $466-million pyramid scheme.
The rookie Liberal MP – the first Canadian born in Mainland China to be elected to Parliament – delivered an unsigned letter from Mr. Gong to Cindy Termorshuizen, the deputy head of mission at Canada’s embassy in Beijing, according to an OSC affidavit filed in a Toronto court.
Ms. Termorshuizen turned the letter over to the RCMP liaison officer in China, who forwarded it to investigators in Canada, the document says.
The affidavit said Mr. Gong denied in the letter that he was running a pyramid scheme and promised to co-operate with investigators in both countries.
He claimed he was “running a legitimate marketing and sales method called multilevel marketing and direct sales” of health-care products in China. A former Canadian ambassador to Beijing, David Mulroney, expressed surprise that the Liberal MP would approach the embassy on behalf of Mr. Gong, and praised Ms. Termorshuizen for giving the letter to the Mounties.
Mr. Gong has donated $7,000 to the Liberal Party over the past few years, and was at a Liberal fundraiser involving Prime Minister Justin Trudeau and Chinese-Canadian business people in Toronto in May, 2016.
Mr. Gong was in a widely circulated photo of the Prime Minister making dumplings for his donors at the event.
The picture was part of The Globe’s coverage of cash-for-access fundraisers that prompted the Liberals to usher in legislative reforms on political donations.
Since the 2015 election, Mr. Tan has travelled frequently to China, where he has met Communist Party officials whose goal is to win overseas support for the authoritarian government’s political agenda.
In April, he accepted a free trip to Hunan province paid for by Toronto businessman Kai Wu, who runs an an immigration investment and education enterprise.
Mr. Tan said he accepted the trip to help Mr. Wu “attract more international students to Canada to study.”
The OSC affidavit said the investigation of Mr. Gong involved the New Zealand Police and China’s Ministry of Public Security and as well as the RCMP and Canada’s FinTRAC, a federal agency that tracks the movement of money offshore.
Read the full story over at the Globe and Mail.
This story was summarized by Canadian Fraud News Inc.