A Langley developer and his wife allegedly diverted funds intended for local construction to the purchase of several other multi-million dollar properties, a lawsuit is claiming.
Forjay Management and Reliable Mortgages Investment Corporation launched a lawsuit against Natalie Lauren Chandler, 208th Street Yorkson Ventures, and a pair of numbered companies on March 9.
The two plaintiffs loaned more than $34 million to the Murrayville House condo project. The condos were eventually built, but the long-delayed project collapsed under lawsuits and is now in the hands of a court-appointed receiver.
Forjay and Reliable allege that money from the Murrayville House loans was used to pay for a $4.25-million waterfront home in Kelowna, owned by Natalie Chandler.
The lawsuit claims at least $1,023,756 put towards the purchase, mortgage, or improvements to the home came from the numbered company that owned the condo site.
At least two other valuable properties were also allegedly purchased or improved using at least some money from the Murrayville House project.
The first is a project on the south-east corner of 208th Street and 80th Avenue, which is currently owned by a company called 208th Street Ventures. It was purchased for $12.44 million.
The second is a lot in the 20300 block of 86th Avenue, close to the Carvolth Transit Exchange. That land was purchased for $6.675 million by a numbered company.
All of the numbered companies involved, and 208th Street Yorkson Ventures, are allegedly controlled by Mark Chandler and his Newmark Group of companies.
None of the allegations has been proven in court.
At least one of the properties, at 208th Street, appears to be in the process of being sold.
The creditors claim that the money advanced to the Murrayville House project should have been held in trust and “were to be used only for the purposes of purchasing the Murrayville lands and construction the residential development…”
The creditors’ lawsuit asks for an order that Natalie Chandler and the companies pay back all the money from the loans in their possession, an accounting of all the cash transferred, and punitive damages, among other requests.