Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
An immigration lawyer has been hit with a class action lawsuit alleging that he defrauded individuals hoping to immigrate to Canada by directing them to invest in companies he or his former romantic partner controlled.
Plaintiff Haokuang Tian filed the statement of claim August 7 in Manitoba’s Court of Queen’s Bench. He claims he lost hundreds of thousands of dollars after he hired immigration lawyer Paul Hesse for assistance with his immigration application.
According to the immigration lawyer fraud class action lawsuit, Paul told Haokuang to invest in Canadian companies so that he would qualify for the provincial nominee program.
Haokuang reportedly says he agreed to invest $350,000 in a company that had reportedly been incorporated just a month earlier. Paul allegedly represented the company and its director. Haokuang did not know this information at the time he invested the money, according to the immigration lawyer fraud class action lawsuit.
The money was reportedly deposited into a trust account, and Paul subsequently transferred the money to Vidahlia Corp., of which Paul’s romantic partner served as a director.
“The scheme was: invest money in businesses that were controlled by either Hesse and or his partner, and you will become a permanent resident of Canada,” Kenneth Zaifman, a lawyer representing Haokuang, reportedly said.
“None of these businesses have assets or operations. So they were, in effect, shell companies, established solely for the purpose of obtaining money from these individuals.”
Paul’s former law firm, Pitblado LLP, is also named as a defendant in the immigration fraud class action lawsuit. Haokuang alleges that Pitblado knew or should have known that money was being transferred out of the trust account for a potentially illegitimate purpose.
Paul was reportedly dismissed as a partner at Pitblado in June 2019 over allegations he had been using funds from clients to invest in his romantic partner’s businesses. A month later, he was suspended by the Law Society of Manitoba.
Class Members of the proposed immigration lawyer fraud class action lawsuit would include any clients of Paul or Pitblado who invested in a Canadian company for the purpose of immigration and suffered a loss.
The immigration fraud class action lawsuit seeks to recover all money lost plus any assets Paul purchased with the proceeds of the alleged investment scam.
Zaifman does not know how many people were affected by Paul’s investment scheme, but there could potentially have been millions of dollars lost due to the scheme.
In July 2019, CBC News published an article about a man who sought to immigrate to Canada and lost his family’s life savings after transferring $200,000 to Paul in hopes that it would boost the chances that his family would be granted permanent residency in Canada.
The man, who CBC calls Mark, says he and his family have visitor visas and reside in Winnipeg. Mark is afraid that future immigration applications may be affected if he speaks out publicly about his experience with Paul’s alleged immigration scheme.
After learning that Paul had been suddenly dismissed from Pitblado, Mark was alarmed about the money he spent and the future of his family’s immigration status. The law firm estimated that more than 20 former clients may be affected by Paul’s investment scam.
Mark, a Chinese immigrant, says he was introduced to Paul from a friend who was also working on an immigration application with Paul. That friend has reportedly been accepted into the provincial nominee program.
Because of his friend’s recommendation, Mark said he believed that he could trust Paul.
“They got to know each other very well,” Mark told CBC.ca. “In China, we do things through friends’ help.”
Paul allegedly told Mark that the best way to immigrate to Canada was to establish a company and invest $200,000 for the company. Paul reportedly did not disclose that he represented the company.
Mark was reportedly told that his money would be returned in full when he got his work permit.
According to CBC News, at least $100,000 was transferred to Pitblado accounts and another $100,000 was transferred directly to Paul.
When Mark met with Paul after learning he had been dismissed from Pitblado, Paul reportedly told him the immigration plan “wouldn’t work” and that “now I can’t refund you all your money.”
Paul reportedly did not admit he did anything wrong, but instead told Mark that they needed a new plan.
Benjamin Hecht, a managing partner at Pitblado, asserts that Paul’s scheme was conducted without the knowledge of anyone else at the law firm.
“Mr. Hesse abused his position and the trust of his clients,” Benjamin said of Paul. “Upon learning this, we immediately removed him from the firm and seized his laptop.”
The immigration fraud class action lawsuit is not the first to allege lawyer misconduct against individuals seeking to legally reside in Canada. A $550,000 class action settlement was recently reached over allegations lawyers failed to provide proper representation to Roma refugees due to discrimination.
What do you think about the immigration lawyer fraud class action lawsuit? Should the people who unknowingly invested in the scheme get their money back? Tell us your thoughts in the comment section below!
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
