Hickman Motors sues Mount Pearl man over alleged fraud days after CBC story airs
Philip Chancey faces 2 lawsuits in Newfoundland and Labrador, 1 in Nova Scotia
A Mount Pearl man accused of making fraudulent deals to resell valuable items seized by authorities in the United States to three different companies is facing more legal trouble.
Three separate lawsuits have been filed against Philip Chancey, CBC News has learned, including one that was dropped after Chancey paid money he allegedly owed, and another filed just days after CBC reported that a deal to sell electric cars went awry.
According to a statement of claim filed by Hickman Motors in the Supreme Court of Newfoundland and Labrador on May 29, "the vehicles have not been delivered nor have the defendants provided any evidence as to the location of the vehicles or whether the vehicles even exist."
Chancey has yet to file a statement of defence. He declined comment to CBC News.
Hickman asks questions after CBC story aired
The St. John's-based auto dealer said Chancey promised to broker the sale of used cars seized in the United States at a discount.
Court filings claim Hickman signed on to buy 304 cars and sent Chancey more than $400,000 as a deposit on Nov. 19, 2018. Months passed and no vehicles were delivered.
On May 23, CBC News published a story about fraud allegations against Chancey in other business deals.
The next day, Hickman Motors asked Chancey to provide evidence the money it paid him actually went toward the cars he had promised.
Hickman said Chancey couldn't provide any proof.
The company is seeking the return of its money, plus general damages, punitive damages and the cost of its legal fees.
Nova Scotia lawsuit
In the guts of the Supreme Court building in downtown Halifax, three boxes of documents lay out a similar tale in Nova Scotia.
In February, Chancey ended litigation with a New York-based company over a $600,000 US deal gone wrong.
Alex Lyons and Son — an auction house led by CEO Jack Lyon — entered into a deal with an Ontario company, HQ Tech, to buy 96 pieces of construction equipment that were seized in Texas.
According to court filings, Lyon had no idea HQ Tech was brokering the deal for Chancey. Lyon would soon come to wonder if the construction equipment ever existed in the first place.
Four months after paying a $600,000 US deposit to HQ Tech, Lyon found out the majority of the money had been transferred to Chancey in Newfoundland and Labrador.
According to Lyon, Chancey said he was working with a Nova Scotia company, Dartmouth Supplies Ltd. (DSL), and Chancey assured him "he and DSL did deals of this nature all the time."
Court documents show DSL vehemently denied any involvement in the deal, however, and said Chancey never acted on behalf of the company.
Throughout the proceedings, the owners of HQ Tech and DSL denied any knowledge of impropriety or wrongdoing by Chancey.
Assets frozen, guilty of contempt
On July 4, 2018, Lyon flew to Nova Scotia to meet with Chancey.
Lyon said Chancey refused to tell him where the construction equipment was. Lyon demanded his money back, and Chancey agreed.
Weeks ticked by and no payment was made, so Lyon turned to the courts.
On Sept. 21, 2018, a judge in Nova Scotia froze bank accounts belonging to Chancey and his numbered company, and ordered he provide the whereabouts of Lyon's money by a deadline.
When the deadline passed without any such evidence produced, the judge ruled Chancey and the numbered company were in contempt of court and fined them $5,000 each.
On Dec. 19, 2018, Chancey wired his lawyer $600,000 to place in trust. With the money secured, the lawsuit was dropped a short time later.
Court date set for another lawsuit
Two days before sending the money to his lawyer, Chancey acquired $1 million from a North American auto leasing firm.
As previously reported by CBC News, that deal with Cox Automotive Canada is now subject to a lawsuit in Newfoundland and Labrador.
Cox Automotive alleges Chancey promised to deliver 744 vehicles seized at the United States border. Cox paid him a $1,000 US deposit for each vehicle — about $1 million Canadian in total.
The company is suing him for its money back, but it believes the cash is stashed in an Icelandic bank account.
Chancey previously refused to comment on the matter when contacted by CBC News.
He's due in a St. John's courtroom on June 17.
ABOUT THE AUTHOR
With files from Emily Latimer