A Vancouver businesswoman who claimed to be too “cash poor” to pay about $3 million in mortgage debt, despite claiming a net worth in excess of $94 million in 2018, has been ordered to pay.
In a decision issued this week and posted online, British Columbia Supreme Court Clerk Meg Gaily calls Helen Chan Sun’s case “unlike any other” she has heard before.
“I believe that Ms. Sun lives a lavish lifestyle and makes regular purchases at high-end stores, indicating someone whose income far exceeds the $60,000 to $70,000 she claims to earn annually,” Gaily’s ruling said.
“I found his testimony that many of the purchases were gifts or prizes to people at his companies or investors to lack credibility and his inability to remember or identify specific major purchases… defies credulity.”
Origins of debt
Gaily was asked to weigh in on the case in a “debtor summons” proceeding, which was initiated by GC Capital Inc.
In 2018, that company issued a $4.5 million mortgage to two companies, 1161359 BC Ltd. and Cameray Garden Holdings Ltd., according to Gaily’s decision. Sun was one of the two guarantors of the mortgage.
When the companies defaulted on the mortgage in June 2019, GC initiated foreclosure proceedings. In February 2020, he won a judgment against Sun and the other parties involved in the mortgage, for a total value of $5,332,811.87.
The decision indicates that Sun and GC signed a settlement agreement in March 2021, in which Sun agreed to pay $5,677,159 in installments.
“Ms. Sun paid approximately $3,000,000 of the debt, but since the summer of 2022, Ms. Sun has refused to pay the balance owed,” the decision reads.
Gaily’s decision does not specify the address of the property the mortgage was intended to finance, describing it only as a “real estate development in Burnaby.” The decision does not provide details about what led the recipients of the funds to default on their obligations.
In its application to the court, GC asked Gaily to order Sun to pay $300,000 a month for the remaining debt.
Instead, Sun and his attorneys told the court that his ability to pay has been “negatively affected by the current housing market” and that he has “poor liquidity.” They asked Gaily to order him to pay only $3,000 a month, which is one percent of what GC was asking.
‘Expensive purchases in luxury stores’
According to Gaily’s decision, the debtor’s process subpoena was initially scheduled for a half-day hearing on March 27, 2024.
Instead, the hearing continued three times and finally concluded on November 28.
GC lawyers questioned Sun “extensively” about his net worth and the contents of documents he had submitted for the hearing and for previous related cases, the decision states.
“Ms. Sun testified that she did not know the current value of her assets, that is, the value of her shares,” the decision reads, noting that she agreed to have previously filed affidavits showing her personal net worth of 33,277,542 .10 dollars in October 2022. and $21,238,533.41 in November 2023.
According to the decision, Sun owns or controls several companies engaged in real estate development in British Columbia, and touted the success of one of them – Landmark Premiere Properties Ltd., of which she is CEO – in one of her affidavits.
Despite this, Sun told the court that he earns between $60,000 and $70,000 a year, drives vehicles rented by his companies, resides with his mother and does not pay rent.
The personal bank statements he provided showed monthly incoming transfers from Landmark Premier of approximately $4,000. However, they also showed “two deposits of $31,250 each” in August and October 2023.
“Ms. Sun testified that these funds were provided to her by Landmark Premiere Properties (Central Plaza) Ltd. (“Landmark Central Plaza”) (a company of which she is one of the two directors and in which another company is owned (50 percent of the shares),” reads Gaily’s decision.
“Ms. Sun said that the company had asked her to donate these funds on its behalf, but I did not have any evidence before me to confirm this (such as copies of gift tax receipts).”
Similarly, personal credit card statements provided by Sun showed that “throughout 2023, he regularly made expensive purchases at luxury stores,” according to the decision, which lists purchases made at the Dior boutique at the Hotel Vancouver , the Cartier store at the Bellagio in Las Vegas and the Hermes and Holt Renfrew stores in Vancouver, among others.
She told the court that the purchases were made on behalf of her companies and that she provided receipts and received reimbursement for them. When asked why he did not use a company card to make such purchases, he said he used his personal card at times when he did not carry his company cards with him, such as on weekends.
$18 million shareholder loan
During the hearing, GC attorneys questioned Sun about evidence that Landmark Premiere owes him $18 million.
In response, he stated that he “could not confirm the exact amount” because he “did not have the data,” according to Gaily’s decision. Sun also declined to estimate the amount the company owes him, but said he could “recognize” it was a substantial amount.
“He also admitted that he never received any payment from Landmark Premiere for the shareholder loan he advanced,” the decision reads.
“Ms. Sun does not deny that she is owed money well in excess of her debt to GC, namely the $18,000,000 that Landmark Premiere owes her under its shareholder loan,” it continues.
“Despite her evidence that she did not know the value of her companies’ properties or her own net worth, I find Ms Sun to be a sophisticated businesswoman who has invested heavily in real estate development in the Lower Mainland and I am satisfied with it.” “The evidence before me is that his personal net worth exceeds $20,000,000, such that he has the ability to repay the debt owed to GC.”
He cheerfully noted that Sun had not provided any evidence to suggest that Landmark Premiere was insolvent or unable to repay its shareholder loan.
Additionally, the recorder found that no evidence had been presented to show that the current real estate market and interest rates would make it difficult for Sun to pay GC $300,000 a month.
“In any case, the fact that a debtor has sufficient assets that, if realized, could satisfy the debt, demonstrates that he has the means to do so,” Gaily’s decision reads.
“The fact that Ms. Sun is not comfortable doing so does not change that determination, particularly when the difficulty arises solely from the complex corporate structure that the debtor itself has established.”
He cheerfully ordered Sun to pay $300,000 a month, as GC requested.
