The B.C. NDP government introduced new anti-money laundering measures earlier this year – including unexplained wealth orders. These must be applied for through the courts in each case and must meet certain tests. If approved by a judge, the orders put the onus back on the alleged offender to explain where the money to buy their assets came from in cases where criminal activity or corruption is suspected.
The information from the orders can then be used to pursue civil forfeiture cases, where the province seeks to seize assets or money.
“Significantly, this is the first unexplained wealth order in Canadian legal history,” Farnworth said in a statement on Thursday.
In this case, the province has alleged in B.C. Supreme Court filings that money from a $200-million international stock fraud was laundered through a Salt Spring home at 435 Stewart Rd.
Although the sole owner of the home is listed as Alicia Valerie Davenport, she and her listed spouse, Geordie Lee, also known as Skye Lee, are both listed in the forfeiture case originally filed in August.
Neither have appeared in court.
In the lawsuit, the province’s director of civil forfeiture alleges that $1.15 million was delivered in four wire transfers through a shell company to a West Vancouver law firm between Oct. 30, 2017 and Nov. 2, 2017 for a “purported” loan to Geordie Lee, and that those transfers were the proceeds of the unlawful stock fraud.
The Salt Spring Island property was purchased outright on 3 November 2017 for $1 million, with no mortgage, according to B.C. property records. The property is now valued at $1.8 million, according to B.C. Assessment Authority records.
“At all material times, the income lawfully received by A. Davenport and G. Lee was insufficient to enable the defendants to acquire or maintain the Stewart Road property or the defendants’ interest in the Stewart Road property, in whole or in part,” the civil claim states.
Davenport, also known as Alicia Lee, is listed as a housewife on B.C. land title documents. In February, the owner’s name on the title documents was changed from Alicia Lee to Alicia Davenport.
The province has a second civil forfeiture lawsuit naming Davenport and Geordie Lee, which also alleges money from the $200 million stock fraud was laundered through the purchase of another Salt Spring Island residence.
In that lawsuit, Davenport and Lee have denied any wrongdoing and said they had no interest in the property at 391 Baker Rd. on Salt Spring Island.
The province alleges the money to pay for the then $1.155-million home in 2014, and for $526,000 in renovations, came from the $200-million stock fraud.
The property is now worth $4.2 million, according to B.C. property records.
This case, which also lists the company Beresford Estates and others, was launched in 2019.