Lawyer Ping-Teng Tan, who has publicly defended a succession of contentious Chinese actions, stands accused of mishandling client funds
A second alleged victim charges in a lawsuit that Ping-Teng Tan failed to hand over $550,000 from the sale of the client’s house, before shutting down his law firm. A third person has accused Tan of “fraud, theft and misappropriation” for allegedly pocketing $216,000 of his money under similar circumstances.
Meanwhile, two of the ex-clients recently won default court judgments ordering Tan to pay back the money after they received no response to their lawsuits.
“It is clear that Mr. Tan is in breach of contract, breach of trust and breach of fiduciary duty,” Justice Jill Cameron of Ontario’s Superior Court of Justice said in one of the cases. “It appears as though Mr. Tan has been dishonest having likely misappropriated or dealt with the (funds) which were to be held in trust.”
As well, at least one of the clients has complained to York Regional Police about alleged criminal acts.
Det.-Const. Greg Hurst of York’s financial crimes division, who a source familiar with the case indicated was looking into the matter, declined to comment.
“I wouldn’t be able to disclose anything,” said Hurst. “I can’t speak about any investigations that are ongoing.”
A department spokesman said the York force only provides information when criminal charges have been laid.
The three cases have unfolded in court and before a legal regulator over the last several weeks. But it’s not the first time the lawyer has been embroiled in financial controversy.
Tan, often known as just Ping Tan and aged about 80, could not be reached for comment.
A statement of claim from the second victim says Tan was processing the $2.8-million sale of his Toronto-area house last year and was required under Canada Revenue Agency (CRA) rules to withhold 25 per cent of the proceeds until a foreign-ownership tax was paid. The lawyer transferred the tax owed to the CRA, but never turned over the remaining $550,000 to clients Baozhong Zhang (no relation to Xiaolong) and Yi Hong Lin, the statement of claim said.
The law firm explained its actions with “words to the effect that they had (negligently) allowed their trust account to be overdrawn and were not currently in possession of such funds and required more time,” the statement of claim alleges.
When Tan failed to respond to the lawsuit, a Superior Court judge ordered him to pay his client the money. Xiaolong Zhang and his wife won a similar judgment last month.
The third set of alleged victims, Dezhong Chen and Xiang Jiang, said in a statement of claim filed last month that Tan withheld $216,000 to cover the non-resident tax when they sold their house here, but never paid the $86,000 owed to the CRA or returned the balance to the clients. Chen and Jiang say they have been unable to contact Tan.
Tan told the Law Society he has retired and his practice has been closed.
The cases, meanwhile, have turned a spotlight on one of the first and most fervent backers of the Chinese government in Canada, amid growing focus on foreign interference in Canadian affairs.
“Ping Tan is obviously the CCP’s advocate, the strongest advocate in Canada,” said Gloria Fung of the group Canada-Hong Kong Link, who led lobbying efforts that convinced the federal government to set up a foreign-agent registry. “He has publicly vowed his support for lots of the CCP’s controversial policies.”
He has publicly defended a succession of contentious Chinese actions, from suppression of human rights in Tibet to a crackdown on freedoms in Hong Kong and harassment of Taiwan. He’s been a frequent guest at China’s Toronto consulate, hosted a number of visiting Chinese leaders and boasted that he advised Beijing on how it could convince Canada to return a fugitive businessman to China.
Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our daily newsletter, Posted, here.