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Bob Mackin

A B.C. Supreme Court judge has thrown out a retired mining tycoon’s defamation lawsuit against a charity watchdog. 

Former HDI Mining executive Scott Cousens sued Vivian Krause over three letters she published on her Fair Questions blog in 2021. Krause cast doubt over Cousens’ $23 million in donations to the 2013-opened Fortius Sport Centre in Burnaby. Cousens laid claim to the single, largest philanthropic gift in Canadian sports history.

Vivian Krause (Fair Questions)

After Fortius announced it would close at the end of 2020, due to the effects of pandemic restrictions, City of Burnaby paid $25.8 million for the complex. It was renamed the Christine Sinclair Community Centre in September 2023 for the Burnaby-born, former Canadian national soccer team star. 

Krause claimed that Cousens “became the front man of an elaborate scheme that involved loans, not true gifts” in her letters to Cousens, charity lawyer Blake Bromley, B.C.’s Auditor General, RCMP and Burnaby civic officials. 

Through her research of public records, Krause claimed that the total amount of gifts from Cousens’ private foundation to Fortius totalled just $130,000. 

After Cousens sued, Krause successfully applied for the case to be dismissed under the Protection of Public Participation Act, the formal name for B.C.’s anti-SLAPP (Strategic Lawsuit Against Public Participation) legislation. 

Justice Kevin Loo heard arguments on May 13 after the hearing was postponed in December and February due to a shortage of judges.

Loo’s July 15 written decision found that Cousens failed to demonstrate that Krause’s letters were not protected by the defences of justification and fair comment. Loo also rejected Cousens’ contention that Krause acted with malice.
“Proof of overzealous conduct does not establish malice,” Loo said.  

Krause alleged a “series of circular, self-cancelling transactions” took place involving $74.7 million gifted to Fortius by Bromley-created CHIMP and that the money was used to repay five other Bromley-created charities, which then made gifts back to CHIMP. Loo said it was beyond the scope of Krause’s application for him to decide the legitimacy of the transactions, but he noted that Cousens “does not appear to deny the basic facts underlying Ms. Krause’s allegations.”

Scott Cousens (Amarc)

Instead, Cousens accused Krause of misunderstanding because the Fortius funding model was based on accounting advice. 

Loo said Cousens deposed that his relationships with others had been affected by the publicity, but he did not provide specifics. Loo said he may be shunned for other reasons, such as a 2018 Globe and Mail exposé on Bromley that identified Cousens as a client.

“The harm Mr. Cousens likely suffered, or will likely suffer, as a result of Ms. Krause’s expression is not serious enough that the public interest in continuing the proceeding outweighs the public interest in protecting that expression,” Loo ruled.

Loo also pointed out the disparity between the plaintiff and defendant, and suggested that Cousens could have countered Krause’s allegations elsewhere.  

“Mr. Cousens acknowledges that he has substantial financial means at his disposal. He has sufficient resources to dispute Ms. Krause’s allegations in the ‘court of public opinion’ if he wishes to do so,” Loo wrote. “Although Ms. Krause has been raising funds for her defence through a ‘GoFundMe’ webpage, it is clear that she does not have the resources that Mr. Cousens has.” 

Krause raised more than $31,000 through GoFundMe and the judge awarded Krause some costs. She said that will not be enough to pay her lawyer, Dan Burnett, who she called wise and compassionate. 

“This is a wake-up call for the [Canada Revenue Agency] and for all British Columbians, all Canadians because the issue at the heart of this is the sad truth that some of the largest charitable donations in Canadian history are a sham,” Krause said. 

Cousens has not immediately responded for comment.

CRA revoked the Fortius Foundation’s charitable registration in July 2022. An audit found it was not operated exclusively for charitable purposes, and it failed to maintain adequate records, properly provide donation receipts or file an information return. 

A Federal Court of Appeal judge rejected the Fortius appeal in October 2022. In May 2023, the Supreme Court of Canada dismissed Fortius’s application for an appeal. 

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Bob Mackin A B.C. Supreme Court judge has

For the week of July 14, 2024:

In the middle of spring break, on a Friday afternoon, Metro Vancouver revealed the North Shore Wastewater Treatment Plant would take another $3 billion and six years to complete. It was supposed to cost $500 million to $700 million and be ready in 2020. 

Seven local government politicians from around the Lower Mainland are demanding transparency, accountability and reform from the regional government. They want an audit and they want elections for directors in 2026. Two of the seven are Bob Mackin’s guests on this edition of thePodcast: New Westminster city councillor Daniel Fontaine and Richmond city councillor Kash Heed. 

Plus, this week’s Pacific Rim and Pacific Northwest headlines. 

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For the week of July 14, 2024:

Bob Mackin

An executive with Chinese-owned TikTok said he met with top Elections BC officials, in case any hostile actors use the popular short video app to sway voters in the Oct. 19 provincial election.

TikTok Canada’s Steve de Eyre (Mackin)

“That’s something we take super serious,” Steve de Eyre, the director of public policy and government affairs for TikTok Canada, said in Vancouver on July 10.

De Eyre said he met with chief electoral officer Anton Boegman and his staff “to make sure that they understand our processes, our rules, and we understand what their concerns are, and most importantly, that there’s a direct line of communication, that if there are content escalations, that they know, they have a backbone.”

De Eyre said the company’s policies do not allow false or misleading content about election processes and results or promotion of illegal activities, including intimidation of voters, election workers or observers. He said TikTok has a network of 15 global fact checkers who are informed about the main actors and potential misinformation and disinformation themes in each election. 

“We defined harmful mis- and disinformation to include that that can undermine electoral processes or civic processes. So, you know, false outcomes of elections,” de Eyre said.

“It’s something we’re focused on at the provincial level, at the federal level, and again, ensuring that we’re taking it from an independent, objective standpoint.”

TikTok parent ByteDance’s operations are headquartered in Beijing, where it also runs the Douyin video app targeted at the Chinese market. TikTok CEO Shou Zi Chew appeared in Vancouver in April 2023 at the TED Conference, where he called questions about whether the Chinese government could use TikTok to interfere in a U.S. election “highly hypothetical.”

The U.S. presidential election is Nov. 5 — 17 days after B.C.’s next legislature is decided. 

Chew said that, with the help of third-party monitoring, he was confident that “we can reduce this risk to as low as zero, as possible.”

Elections BC spokesperson Andrew Watson said his agency is in direct contact with several social media companies, including TikTok. 

“These meetings are being held to ensure platforms are aware of the prohibitions against false statements and misrepresentation that were added to B.C.’s Election Act in 2023,” Watson said.

The Act threatens fines up to $20,000 for false statements about candidate withdrawals, elections officials, voting administration and the results, but it does not cover parody and satire. 

Boegman has the power to order individuals or organizations to stop their false and misleading activities. Fines are up to $50,000 per day, for every day a violator fails to comply. The Act does not regulate political debates or all claims that might be considered disinformation by some.

(Elections BC)

“We have staff who are trained in social media monitoring to help us spot trends in the information environment, including TikTok. Our investigations team has capacity to conduct investigations related to potential contraventions of the Election Act on social media,” Watson said. 

“In addition to monitoring, we rely on voters and political participants to let us know if they see something online that may constitute a contravention of the Act.”

Watson said Elections BC has networked with regulators in other provinces, as well as Australia, Sweden, Estonia, Singapore and U.S. on this topic. Officials also met with representatives of the Doublethink Lab from Taiwan during the Canadian Network on Information and Security conference held in Banff in 2024.   

Academic doubtful

Benjamin Fung is a professor on data mining for cybersecurity at McGill University’s school of information studies. He is skeptical about TikTok’s co-operation with Elections BC and its approach to elections in general.

“TikTok is trying to put itself in an innocent position, claiming that the interference, if any, is coming from the users. However, the problem here is that we do not trust there is no bias on its recommender system, as illustrated in many previous political topics,” Fung said. “We are not talking about whether or not TikTok will report evidence of interference.”

The recommender system is the machine learning algorithm that helps decide what the user sees. Fung describes it as the “most-powerful and valuable component” of TikTok. It may never recommend sensitive videos, “even though they are sitting on TikTok,” he said.

The B.C. government banned its workers from using TikTok on government devices in February 2023 for privacy and security reasons. 

TikTok is under even greater scrutiny in the U.S. President Joe Biden signed a law in April that required ByteDance to sell TikTok within nine months or the app be banned in the U.S. U.S. officials are concerned with the Chinese government’s strict laws that allow it to access data inside private companies in China and require those companies to each maintain a Communist Party committee.

Prof. Benjamin Fung (McGill/YouTube)

De Eyre said that TikTok user data is stored in the U.S., Singapore and Malaysia and denied it takes orders from the Chinese government. 

“We’ve never removed content at the behest of the Chinese government or any one government,” he said.

The U.S. divestiture edict followed the annual threat assessment by the Office of the Director of National Intelligence, which said China is becoming more sophisticated with its foreign influence techniques, including use of generative artificial intelligence. 

“TikTok accounts run by a People’s Republic of China propaganda arm reportedly targeted candidates from both political parties during the U.S. midterm election cycle in 2022,” the report said.

Research by the Brookings Institution think tank said the DPP, the party led by Taiwan’s January-elected president Lai Ching-te, struggled to communicate with the public due to the heavy use of TikTok, especially among younger voters. The report cited the Taiwan Information Environment Research Center, which said pre-election surveys in 2023 found TikTok users “tend to believe pro-China narratives that oppose pro-U.S. policies and support closer cross-strait ties.” 

The Network Contagion Research Institute at Rutgers University in New Jersey analyzed hashtag data on topics sensitive to China’s government and its geopolitical objectives, such as the Ukraine-Russia War, Kashmir independence and the Israel-Hamas war. 

“The conclusions of our research are clear: Whether content is promoted or muted on TikTok appears to depend on whether it is aligned or opposed to the interests of the Chinese government,” the study said.  

Meanwhile, TikTok, Meta, Snap and X (formerly Twitter) are co-operating with the B.C. government on the “online safety action table” after the NDP government paused Bill 12, the Public Health Accountability and Cost Recovery law proposed during the spring session. 

TikTok held a briefing session July 10 for Vancouver media about its programs and features to limit platform access for children and teenagers. 

De Eyre said the companies have held one full meeting with the government and individual meetings. Another is planned for next week. There have been no “finalized solutions or plans” yet, he said.

“These are global platforms, and we’re looking at British Columbia, a subnational jurisdiction,” he said. “What is it that we can do that’s going to make a difference in British Columbia, that we, as platforms, can bring our resources towards aligning with government priorities?” 

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Bob Mackin An executive with Chinese-owned TikTok said

Bob Mackin

Four citizens with Save Stanley Park are hoping a judge will halt the Vancouver Board of Parks and Recreation from cutting down any more trees in Stanley Park. 

In a negligence lawsuit filed July 11 in B.C. Supreme Court, software developer Michael Robert Cadiz and homemaker Katherine Caditz, holistic health educator and coach Anita Hansen and schoolteacher Jillian Maguire named City of Vancouver, the Park Board, urban forestry manager Joe McLeod and contractor B.A. Blackwell and Associates as defendants.

Stanley Park entrance on West Georgia (Mackin)

Between October and March, crews logged more than 7,200 trees in Stanley Park, a fraction of the 160,000 that the Park Board said would be removed due to the Hemlock looper moth infestation and wildfire fears. The Park Board is spending almost $7 million on the operation.

“If defendants continue the logging operation to its stated conclusion, then almost one third of the trees in Stanley Park will be cut down,” said the court filing. “Many healthy trees, including red cedar and Douglas fir trees, have already been cut down, including a 150-year-old fir. Further, much of the logging is implemented as patch cutting, which results in cutting healthy trees which happen to be situated in the patch, but leaving defoliated trees which happen to be situated outside of the patch.”

The plaintiffs claim the tree removal operation has resulted in muddy trails, previously secluded or shaded areas being subject to sunlight and heat and increased traffic noise and exposure to roadways. Also, the sights and sounds of heavy machinery that emit diesel exhaust. 

The result, the four plaintiffs claim, is that the logging has harmed their mental health and caused physical discomfort. 

Top city hall bureaucrats approved the first phase last August behind closed doors and recommended the emergency, no-bid contract with North Vancouver’s Blackwell while city council and park board politicians were on summer holiday. 

The lack of public debate is a major issue in the lawsuit. The plaintiffs say there was never a motion at a public Park Board meeting to direct staff to remove trees from Stanley Park nor was there a motion approve any contract with Blackwell to hire logging subcontractors. 

Crews load logged Stanley Park trees at a makeshift yard in the Prospect Point Picnic Area (Bob Mackin photo)

By comparison, the Park Board, dominated by Mayor Ken Sim’s ABC party until last December, decided at open meetings to repair the storm-damaged Jericho Beach Park Pier, explore new revenue generating activities, lift the moratorium on commercial event applications and remove the Stanley Park Drive bike lane and return it to pre-pandemic condition.

“Plaintiffs find no evidence in the Park Board meeting summaries and minutes from January 2021 through July 2024 that a motion was presented or approved by resolution at a public (or any) meeting,” the court filing says. “Had such public hearing transpired, then experts with alternate recommendations and any conflicting scientific evidence would have had an opportunity to be heard.” 

They also claim the contractor is in conflict of interest. Blackwell was the consultant that assessed the looper moth impact and became the general contractor of the mitigation work it eventually recommended, thus standing to profit from a markup on the logging operation. 

None of the allegations has been tested in court. The defendants have yet to file their replies. 

The Park Board said planting of 25,000 seedlings took place in March and April, including western red cedar, Douglas fir, grand fir, Sitka spruce and red alder. Removal of logs felled across six hectares was deferred to fall 2024, which also delays replanting in those areas.

Park Board general manager Steve Jackson’s internal memo said crews will continue to deal with hazard trees during the summer months and the city was considering bids on the next phase of work.

“The scope will address priority treatments in forest areas at the Aquarium, Brockton Point, Chickadee Trail, and a portion of the seawall west of Lion’s Gate Bridge,” the memo said. 

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Bob Mackin Four citizens with Save Stanley Park

Bob Mackin

Telus confirmed July 11 that it is closing its Barrie contact centre. 

But a source told theBreaker.news that one of its Burnaby offices is also affected.

NDP Health Minister Adrian Dix and Telus CEO Darren Entwistle in 2012 (Mackin)

Brandi Merker, Telus’s senior communications manager, said by email that, following a review of the company’s real estate portfolio, it decided to close the office in Barrie, more than 100 kilometres north of Toronto, affecting 150 employees. Merker said they were given three options: relocate with financial support, seek another job within Telus or take a buyout package. 

“While we hope our team is excited to evolve and grow with us, we know this is a change to the way we work today, and in particular, represents a significant personal decision for our Ontario-based team members,” Merker said. 

Employees in Burnaby were informed July 10 about the Ontario decision and told one of the departments located at the Canada Way and Willingdon complex would be shut. The source, who is not authorized to speak publicly, said the 1,000 workers across Canada, including B.C., who are working from home and want to remain in the company, must work in the office at least three days a week or take a buyout package. 

On the work-from-home issue, Merker said the move is about “training, reskilling and new tools that modernize our capabilities.” 

“To support this, we’re asking our frontline agents and their leaders to come into a contact centre office three days per week for ongoing learning and collaboration to meet our customers’ evolving needs, beginning this September,” she said. 

Merker said Telus ultimately wants to decrease call volumes so that when customers call with “more complex situations, their issue is resolved the first time, every time.”

In August 2023, Telus announced it would cut 6,000 jobs, including 4,000 centrally and 2,000 at its international operations. Telus reported more than 108,000 employees last year, of which nearly 35,000 were in Canada. The remainder are spread across the globe, including India, Philippines, South Africa, Morocco, Guatemala and Brazil.

For 2024’s first quarter, Telus reported a 0.6% drop in operating revenues and other income, year-over-year, to $4.9 billion. That, despite what it called a record first quarter with 209,000 more customers, 46,000 better than a year earlier. 

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Bob Mackin Telus confirmed July 11 that it

Bob Mackin 

A shakeup inside BC United, as Kevin Falcon’s party hired a new campaign manager on July 10.

Mark Werner, who oversaw Ellis Ross’s BC Liberal leadership bid in 2022, has taken over, with 14 weeks until the Oct. 19 election.

Werner told theBreaker.news that campaign operations director Kelly Reichert, strategic advisor Hamish Marshall and executive director Lindsay Coté will report to him.

Mark Werner (left) and Ellis Ross in 2022 (Werner)

“Caucus is very happy and the mood and the tone is changing,” Werner said.  

Werner will oversee all facets of the central campaign and also guide the local campaigns for Kamloops incumbents Todd Stone and Peter Milobar. 

The former president of the B.C. Guide Outfitters Association was a northern B.C. grassroots organizer for the BC Liberals under Christy Clark. He managed Ross’s runner-up campaign in 2022, a contest marred by accusations from Falcon’s six challengers that the former multi-portfolio cabinet minister’s team violated the party’s rules about membership sales and spending. 

Under the weighted voting system, Falcon eventually defeated Ross on the fifth ballot 52.19% to 33.65%. Michael Lee finished third with 14.14%. Just over a year later, in April 2023, Falcon rebranded the party as BC United. 

“He’s the leader, so I’m going to support him,” Werner said. 

After the spring session of the Legislature, BC United suffered defections of caucus chair Lorne Doerkson (Cariboo-Chilcotin) and mental health and addiction critic Elenore Sturko (Surrey South) to the Conservative Party of B.C. The party led by former BC United MLA John Rustad (Nechako Lakes) is riding high in public opinion polls as a likely heir to BC United as the opposition party in the next version of the Legislature. Former BC Greens leader Andrew Weaver suggested the Conservatives could even upset the David Eby-led NDP and form government.

BC United reported $672,000 in donations in the April to June quarter, compared to $1.1 million for the Conservatives and $2.2 million for the NDP. 

Does Werner think he can turn it around? 

“I can and will. Things are not as bad as people think they are.

“The polls don’t reflect what people think, once people get to know John [Rustad],” Werner said. “I don’t think people know Kevin, either.”

To that end, Werner plans to produce a short video on Falcon’s life and family, refine the party’s brand and logo and put together an operations team. 

“I do see a path to victory,” Werner said. 

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Bob Mackin  A shakeup inside BC United, as

Bob Mackin

Could Alan Mullen return to the B.C. Legislature as an MLA? 

The former chief of staff to Darryl Plecas, the speaker from 2017 to 2020, confirms he is being courted by more than one party to run in the Oct. 19 provincial election.

Darryl Plecas (left) and Alan Mullen in Abbotsford (Mackin)

“I’m considering it, I’m having the discussions, I’ve certainly not committed one way or another,” Mullen said, adding he was approached for interim discussions about running in the Lower Mainland.

He declined to say which parties are showing interest, except to say that BC United, the former BC Liberal Party, is not one of them. Plecas was ejected from the party when he was chosen speaker in 2017, early in the Green-supported NDP minority government. 

Mullen rose to prominence by helping Plecas expose corruption in the Legislature, where clerk Craig James and sergeant-at-arms Gary Lenz both resigned in disgrace in 2019. James was later convicted in 2022 of breach of public trust. 

“I think some people, certainly in the back rooms of political parties, are scratching their heads thinking, why would you be asking him, a little bit controversial, and he basically calls a spade a spade,’ Mullen said. “Well, yeah, I wish every politician would call a spade a spade.”

Mullen said he has never been a card-carrying member of any provincial or federal party and is not an ideologue. Instead, “in my capacity as chief of staff, it was always all about doing the right thing… it was about protecting the taxpayer, was always about looking after British Columbians.”

Among the work he did while in Plecas’s office was a 2020 report recommending cost-saving measures in Legislature security. It took until July 2023 for the Legislative Assembly Management Committee to adopt recommendations from “Review of the Sergeant-at-Arms Department and Proposals for Reform.” That is when the all-party committee heard that the first group of 10 unarmed safety officers began orientation and training. 

Mullen’s report recommended that Legislative Assembly Protective Services become a security department with unarmed officers in order to save more than $1 million a year. He found that the force protecting just 5.9 hectares was costing taxpayers $5 million a year and had become more expensive than the police forces in Victoria suburbs Oak Bay and Central Saanich. 

The B.C. Legislature should be a “glass house” where transparency is the priority, Mullen said.

“It’s the people’s house doesn’t belong to any political party, it doesn’t belong to any politician. They’re simply they’re doing the people’s work.”

After Plecas chose not run in the 2020 election, Mullen became head of investigations for a provincial regulator. He said he would mull the offers to run for office during the next three weeks. 

“I haven’t said no, and I certainly haven’t said yes, I’ve taken any call, any conversation. I’ve had the meetings, and I will continue to do so, and I’ll have some more this week,” said the Burnaby resident. “But at the end of the day, it’s not about necessarily me. It’s not about stepping back into the limelight. it’s not even about the political party. It’s about, is this the best time to do it, and is it the best thing for the province? If I feel overwhelmingly then, yes, that’s the answer, then I would obviously accept that and throw my hat in the ring.”

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Bob Mackin Could Alan Mullen return to the

Bob Mackin

How was this for passing the torch?

Members of Canada’s Los Angeles 1984 Olympics team, which finished fourth. (Canada Basketball)

Canada Basketball sent an all-points-bulletin in mid-June to players on men’s Olympic teams dating back to 1976. Four dozen of them paid their own way and showed up on Canada Day weekend in Toronto at the OVO Athletic Centre, where the Paris 2024 squad reported to training camp.  

Greg Wiltjer from the 1984 team and Steve Konchalski, assistant coach to the late Jack Donohue. (Canada Basketball)

“Unsure if Team Canada will ever assemble that much Canadian Olympic basketball talent ever again,” said West Vancouver’s Howard Kelsey, who played on the fourth-place squad at Los Angeles 1984, which lost in the bronze medal match to Yugoslavia.

Kelsey co-founded the Canadian National Basketball Teams Alumni Association and played a significant role in helping Canada Basketball president Michael Bartlett and general manager Rowan Barrett achieve the unprecedented reunion. 

“Several years ago, many of the players, and many of the Olympians, would not come together to support,” Kelsey said. “That’s a miraculous journey.”

Four of the teams were coached by the late Jack Donohue, whose assistant Steve Konchalski attended the reunion. Jay Triano, now an assistant coach with the NBA’s Sacramento Kings, was there as coach of the Sydney 2000 team and member of the playing roster for the 1980 to 1988 squads.  Sydney 2000 star and two-time NBA MVP Steve Nash was unable to attend due to previous commitments.

The doctor for all five teams did attend. Dr. Andrew Pipe was named recently to the Future of Sport in Canada Commission, headed by former Ontario Chief Justice Lise Maisonneuve.

Howard Kelsey (left), Raptors’ broadcaster Paul Jones and Bill Wennington, from the 1984 team. (Canada Basketball)

The Montreal 1976 team finished fourth after losing to the Soviet Union in the bronze medal match. It was Canada’s best since silver at the Berlin 1936 Olympics. The Seoul 1988 and Sydney 2000 teams were sixth and seventh, respectively. The 1980 team did not make it to Moscow, due to the boycott over the Soviet Union’s invasion of Afghanistan.

“So proud of these ‘kids,’ talented, humble and hungry to represent. Our ‘80 team hasn’t changed a bit,” Tweeted Leo Rautins, former national team coach. 

Canada is ranked seventh after the FIBA 2023 World Cup, where it upset the U.S. for the bronze medal last September in an overtime thriller.  Led by Dillon Brooks and Shai Gilgeous-Alexander, and coached by Jordi Fernandez, it was a first for Canada on the world stage. 

In the opening round at Paris, Canada will face Greece July 27, Australia July 30 and Spain on Aug. 2. 

While Kelsey is counting the days to this year’s Olympic tournament, he is also looking ahead to L.A. 2028. Alumni from the 1984 team hope to return to the City of Angels to watch Canada’s best get on the podium there. 

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(Canada Basketball)

Members of Canada’s Paris 2024 basketball team and alumni from Montreal 1976 to Sydney 2000 at the Canada Day weekend reunion in Toronto. (Canada Basketball)

Bob Mackin How was this for passing the

For the week of July 7, 2024:

The special 350th edition of #thePodcast with host Bob Mackin, featuring guests Mario Canseco and Andy Yan in the return of the MMA Panel.

Bob Mackin (left), Andy Yan and Mario Canseco, together, the MMA Panel.

It’s halftime in 2024 and the MMA Panel focuses on the second quarter of the year. Specifically, the performances of leaders at Vancouver and Surrey city halls, Metro Vancouver, the B.C. and federal governments. With 15 weeks left until the provincial election, could Conservative John Rustad upset Premier David Eby and the NDP? Will Prime Minister Justin Trudeau stay or will he go? All that and more on #thePodcast. 

Plus, this week’s Pacific Rim and Pacific Northwest headlines. 

CLICK BELOW to listen or go to TuneIn, Apple Podcasts or Spotify.

Have you missed an edition of theBreaker.news Podcast? Go to the archive.

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For the week of July 7, 2024: The

Bob Mackin

A disbarred Richmond real estate and immigration lawyer failed to convince a B.C. Supreme Court judge that her signature had been forged on a cheque for nearly $900,000. 

Hong Guo and her Guo Law Corp. sued former bookkeeper Jeff Zixin Li and former conveyancing clerk Danica Qian Pan, along with BMO, CIBC and Gateway Casinos and Entertainment.

Guo alleged that between February and April 2016, Li and Pan “conspired to misappropriate” more than $6.6 million from Guo’s trust account at CIBC. She alleged Pan moved funds through the BMO branch located in the same building as her office and transferred the money by bank drafts to an account at Gateway.

Hong Guo

On June 27, Justice Neena Sharma dismissed Guo’s application for a summary judgment. At issue is a single cheque for $887,562 deposited at the Richmond branch of BMO into an account owned by Pan. CIBC had refused to handle the cheque, but BMO claims it has suffered a loss. 

“While the misappropriation of trust funds may not be in dispute, the parties disagree about the plaintiffs’ role in, knowledge of, and responsibility for that misappropriation,” Sharma wrote.

Guo filed the lawsuit in July 2016 and claimed to have worked with Chinese authorities to investigate and prosecute Li and Pan. Early this year, she released court documents from China that said Li and Pan were sentenced by a court in Zhuhai, China to 13 and 15 years in prison, respectively.

Guo started a new action against CIBC in early 2018 in Vancouver and later added BMO and Gateway as defendants.

The judge noted that the Law Society of B.C. found that Guo improperly left at least 125 pre-signed, blank cheques drawn on her firm’s trust account with Li in mid-March 2016. That led, in part, to the Law Society’s finding that Guo failed to properly supervise her staff. Li and Pan filled out the pre-signed cheques by adding payee names and accounts.

BMO’s counterclaim sought payment of Cheque 1117 by Guo, the final cheque in a sequence cashed by Pan. 

Guo told the court that BMO has no authority to enforce payment because her signature was forged. 

Sharma said there were two issues for her to decide. Whether the matter is suitable for summary judgment and, if so, whether BMO was holder in due course of Cheque 1117.

Guo denied signing the cheque and denied authorizing anyone to sign it, but she did not explain to the court how or why she knows that. As such, she “failed to establish that there is no genuine triable issue as to whether BMO was a holder in due course of Cheque 1117.”

Sharma called Guo’s memory lapses and cognitive issues “troubling” and lacking reliability. 

“Guo’s evidence of hardship is wholly inadequate. She provides no documents or certified records regarding her overall assets, income, liabilities, or debt. Remarkably, she attempts to rely on her inability to work as creating hardship to justify her access to the funds paid into Court, even though her inability to work arose from her own misconduct, suspension, and ultimate disbarment,” Sharma wrote.

“I add that it may be contrary to the interests of justice to allow a lawyer disbarred for her own misconduct (as opposed to mental health or disability issues) to successfully claim financial hardship when that would have the effect of giving her success on an application on which they otherwise could not succeed.”

Guo originally came to Canada from China in 1993 and studied law at the University of Windsor. She worked in the State Council in China’s central government and was called to the B.C. bar in 2009. 

In 2018, Guo finished fourth in the Richmond mayoral election. Prior to election day, she denied in an interview with this reporter that China had committed human rights abuses against Uyghur Muslims and journalists, among others.

A Law Society of B.C. [tribunal decided last November that Guo was “ungovernable” and could no longer practice law because of a “lengthy, serious and highly aggravating” record of professional misconduct, including breach of trust accounting rules, conflict of interest, misrepresentations, misappropriation and mishandling of trust funds and breach of LSBC orders.” 

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Bob Mackin A disbarred Richmond real estate and