The British Columbia Lottery Corporation and the provincial government have been added as defendants in a long-running lawsuit filed by disbarred lawyer Hong Guo. The B.C. Supreme Court granted Guo permission to amend her 10-year-old lawsuit, which alleges that her former employee, Qian (Danica) Pan, gambled away $5.7 million from the law firm's trust account at Starlight Casino in 2016.
Allegations of Ignored Red Flags
Guo claims that BCLC failed to act on clear warning signs regarding Pan's gambling behavior. According to the court judgment, BCLC investigators interviewed Pan about her source of income after noticing unusual betting patterns and cash usage. Despite concerns, the investigators accepted Pan's explanation that her wealth came from her parents. Guo argues this response was insufficient and that BCLC should have stopped Pan's compulsive gambling, which resulted in massive losses within weeks.
Justice Anita Chan ruled that there is a sufficient connection between the existing case and the new defendants to warrant a joint trial. The judge noted that Guo's amended lawsuit asserts that BCLC and the province became "constructive trustees" of the misappropriated funds and were unjustly enriched by knowingly receiving and benefiting from the stolen money.
Background of the Lawsuit
Guo originally filed the lawsuit in 2016, naming Pan, bookkeeper Zixin (Jeff) Li, and three other individuals, along with Gateway Casinos and Entertainment, BMO, and CIBC. She accused them of conspiring to steal over $7.4 million from her trust account using forged cheques while she was away. The funds were allegedly laundered through a B.C. casino and sent to China. Pan and Li were later tried and jailed in China.
Guo's amended complaint now alleges that the banks and casino knowingly assisted in a breach of trust. She maintains that all defendants hold part of the stolen millions and should be held accountable for their roles in the scheme.
Legal Implications
The addition of BCLC and the province broadens the scope of the lawsuit, potentially exposing government entities to liability for failing to monitor suspicious gambling activities. The case highlights ongoing concerns about money laundering in B.C. casinos and the responsibility of regulatory bodies to prevent financial crimes.
Some defendants have already filed responses, counterclaims, or third-party claims. The court has yet to set a trial date for the expanded case.
