Yellowknife theatre closes as RCMP make arrest in business-loan fraud investigation
CBC
A Yellowknife movie theatre and virtual reality gaming business has closed, while RCMP have arrested one person in connection with a fraud investigation involving the company.
Last week, Northern Sky Films Inc. made a post on Facebook saying it was shutting its doors after a "bad guy" used the company to take out a large bank loan and enriched himself with that money.
Then on Tuesday, the RCMP announced that a person who was involved with Northern Sky had allegedly misappropriated money from loans from the Business Development Bank of Canada (BDC).
Police allege that $250,000 in loans were taken out to support Northern Sky, but that the money was "funnelled into a personal account before being further dispersed."
That money never went to developing Northern Sky, say RCMP, and responsibility for repaying the loans was put onto another business partner.
RCMP spokesperson Cpl. Matt Halstead said police aren't naming the suspect as the charges of fraud over $5,000 and laundering the proceeds of crime have yet to be laid.
The arrest comes a few months after Northern Sky claimed in court documents that the company, its sole director Shengtang Wang (also known as Tony) and the BDC are all the victims of fraud perpetrated by Northern Sky's former director, Liang Chen, and Chen's business, C.L. Pacific Immigration Consulting Ltd.
The allegations haven't been proven in court.
Wang said the BDC is suing his company, and he's on the hook to pay back a loan that he didn't even know about.
"After BDC told me [Northern Sky] owes BDC a lot of money, I cannot see any hope in the future [of the company]," he said.
Last November, the BDC filed a statement of claim in the Supreme Court of the Northwest Territories. Northern Sky, along with Chen and Pacific Consulting, are named as defendants.
The BDC claims that in 2018, the bank agreed to give Northern Sky a $250,000 loan, and to secure the loan against Northern Sky's property.
The bank says Northern Sky defaulted under the terms of the loan, and that the company, Pacific Consulting and Chen now owe the BDC more than $269,000.
Northern Sky denies the BDC's allegations, and wants to be excluded from the bank's lawsuit.
A nurse in Winnipeg says Canada's immigration system is undercutting efforts to address a shortage of health-care workers, after his application for permanent residency was rejected based on a technicality.
This year's provincial budget is "essentially" the status quo for wildfire preparation and response, the finance minister says.
Parts of B.C.'s coast continues to see heavy rain as Environment and Climate Change Canada warns of a prolonged atmospheric river this week.
Alberta teachers say they face increasingly dangerous conditions at school, with the most common threat coming from their own students.
Cataract surgeries at Charlottetown’s outpatient clinic are expected to resume in April, after procedures scheduled for March were cancelled due to the clinic reaching its annual funding target earlier than expected.
Shannon Elgazzar can see planes taking off from Cairo International Airport from her balcony.
Yellowknife city council has voted in favour of signing an agreement with the federal government that's aimed at bringing piped water and sewer service to the city's airport.
While Canada's economy is far more reliant on exports to the U.S. than vice versa, Canadian negotiators have crucial ammunition in their efforts to land a trade deal that reduces or eliminates tariffs imposed by U.S. President Donald Trump.
Nova Scotia PC MLA Rick Burns says he and his wife are victims of blackmail after hackers accessed and shared videos and intimate images on his personal devices this week.
The Saint John Board of Police Commissioners and Chief Robert Bruce have lost a bid to permanently deny public access to all court documents related to conduct complaints nine officers filed against the chief.
With the looming October election, Quebec Finance Minister Eric Girard has delivered a modest budget as the province aims to withstand ongoing trade disruptions and mounting geopolitical pressure.
A student in Rivers, Man., says he is stunned the small community was the site of a high-profile arrest after police say a teenage boy was planning simultaneous school attacks with another youth in Nova Scotia.
Saskatchewan expects to run deficits until the end of the decade, according to the 2026-27 provincial budget tabled by Finance Minister Jim Reiter on Wednesday.