How Corrupt SOE Executives Get Into Canada

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Nifty bit of journalism over in the Globe & Mail. They called about twenty China consultants and spun a tale of someone who works at a State Owned Enterprise (SOE) who wished to emigrate to Canada with the millions of dollars he just happened to have stashed away. Excellent stuff — here are some entertaining bits and pieces.

Two options — think about the average salary of someone at a SOE. When they made these calls, they said that the applicant was “working in the department for quality control at a state-owned enterprise.” So this is not a manager or anything, but someone whose salary might be under 10,000 RMB per month, perhaps a lot lower. This person is saying that they have millions of dollars in savings. Fun, huh?

Here’s how one consultant described the requirements:

The first option is a bit stricter. It needs you should have over 10 million assets. And your house and savings should have the identification documents to show them. They will estimate the value. And you will have to spend 1.5 million and wonít get it back. Itís for the federal [program]. And you should also have over three years of executive management experience, such as vice general manager or higher title.

I’m assuming that we’re talking about millions of RMB, but either way, it doesn’t much matter on the salary of a QC guy. We’re talking about ill-gotten gains here, and none of the consultants is concerned.

The second option is different. There is no condition of your assets. Our Canadian lawyer in Vancouver will help you finding an enterprise and the enterprise will provide the documents for you to immigrate there.

GM: Do you mean you will find me a company over there to provide the deposit for me?

Yes, in other words, the company hires you as their executive manager, but theyíre not really hiring you. It costs about 1 million.

This one’s even better. A company “hires” you in exchange for a fee, but they’re not really hiring you. That’s something we like to call fraud. Then again, I’ve seen a lot of folks over here in China get business visa invitation letters from companies that have no connection whatsoever to the person getting the visa, so this kind of thing is common on both sides.

Experience matters — remember I said that the person claimed to be a QC guy? Well, that was a problem for another reason, the experience requirement. But hey, not an issue when additional fraud can take care of pesky little documentation requirements:

The second [option] also requires executive management experience. Do you own a company or are you the executive manager?

GM: Iím not. Iím working in the department for quality control at a state-owned enterprise.

Oh, a department, that is probably not going to work. Youíd better find a company, and say you are the executive manager of the company.

I’m sure that there are plenty of companies out there willing to provide such a service, for the correct fee of course. Actually, the consultant is willing to help out with finding Chinese companies to satisfy the experience requirement, and Canadian companies for the hiring requirement.

Our company will help look for a proper company for you and make some documents.

We help you find the proper company, and certainly you need to pay a sum of money to that company. It costs about 150,000 Canadian dollars.

So helpful!

Hard time — The hypothetical gets more interesting. The caller now says that his brother is thinking of coming along to Canada as well. Only problem is that he’s got a prison record.

Uh oh, that’s going to be a problem. Or is it?

To be fair to the community of consultants out there, one of them did mention that Canada wasn’t a good option for the brother, but that he might consider trying Sweden, which does not require certification of no prison record. Some of the other consultants, however, were a bit more creative.

It depends on the situation. House arrest is fine. If he was imprisoned, it takes more effort, because we need to show a non-criminal certificate issued by the local police station. Itís unavoidable. … If he canít get it, itís quite troublesome.

GM: How can heÖ

Well, guanxi (personal connections, or a bribe)Ö find somebodyÖ the immigration bureau wonít investigate it very strictly. Itís just up to the police station which we can get it issued from. The immigration bureau wonít check whether an applicant really has no criminal record or not, because it is from the government Ö it has credibility.

Read the whole thing, it’s priceless. The only thing missing is a quote or two from the Canadian government on how they sniff out fake documents, their rejection rate, etc. Would have rounded it out nicely.

I’d also love to see a similar sort of investigation of China business consultants. Now that would be a lot of fun.

6 responses on “How Corrupt SOE Executives Get Into Canada

  1. Hou

    But actually Stan the Canadian authorities are very strict. I doubt very much that would’ve gotten past the Government. Proof of taxes paid and all sorts of back up / proof of assets / anti money laundering protocols are required to get into Canada. My wife just did it and the entire process was highly complicated, took a lot of verified documentary evidence of funds and took well over a year.

    1. Stan Post author

      Yeah, that’s exactly what was missing in the article, as I said at the end of my post. They should have interviewed someone at the Canadian Embassy or an immigration lawyer to give the article some balance.

  2. pug_ster

    I don’t know about SOE executives because there shouldn’t be so many of them who have unverified income who wants to emigrate out of the country but there might be some other ways to try to sneak to another country. About 2 months ago, there was an globaltimes article of how the poor people from mostly Fujian providence who paid snakeheads and in a couple of months became a legal Canadian citizen (IE fake marriage and then divorcing later.)

      1. Robert Park

        Dang Stan, the more I read your blog, the more I’m amazed that all lawyers aren’t cynical. Or maybe they all are, and I just didn’t know it. :p I’d wilt in despair from all the crap that goes around.

  3. Justin Liu

    Which is why China should make officials and government employees declare their assets. If your wage doesn’t match your assets, you better be able to explain how you got them.

    on the other hand that kind of thing is hell to enforce (anywhere) because people who have money have ways of hiding it.