Lake Okanagan Resort – Allen Liu – Xiao Dong Liu

Allen Liu 劉曉東先生 DHI Holdings Ltd.

The Lake Okanagan Resort north of Kelowna was sold to Chinese national Xiao Dong Liu aka Allen Liu in 2014. Asking price was $10.1m. The realtor said Liu would spend millions turning it from a three star to five star operation.

By 2019 the complaints were many. Dirty rooms, poor service, high prices and lack of maintenance were reported. Foul odors wafted across the property. The toilets barely flushed and water pressure was low.

It was a long history of problems with the resort’s sewage practices. The discharge of nitrogen and phosphorus into Okanagan Lake was copious and the refusal to do anything about it deliberate. From 2014 to 2020, Lake Okanagan Resort exceeded guidelines 85 times by 13% to 1,520% with 81 of the exceedances being more than 50%. “1782 Holdings Ltd. has made no efforts to achieve compliance.” Two portable sewage treatment plants in the parking lot became permanent. Discharge went to ground. In January B.C.’s Environmental Appeal Board confirmed 1782 Holdings Ltd. fines totaling $47,870.

Foreshore adjacent to Lake Okanagan Resort is listed as a red zone area for spawning Kokanee.

10 months after the McDougall Creek wildfire leveled most of the resort and destroyed power, water and sewer, efforts to rebuild have been zero.

5 penalties have been issued since 2020 under the Environmental Management Act relating to wastewater discharge.

Raw sewage has and is being discharged into foreshore wetlands and Okanagan Lake, where Kelowna draws its drinking water. Remaining unburnt dwellings have no water, electricity or waste treatment facilities.

Francis Zheng – DHI Holdings Inc

Xiao Dong Liu, (Allen Liu) offered to buy two commercial properties owned by Jeong Lee in Burnaby and Maple Ridge. In October 2011, vendor Lee accepted both offers for the two properties, with the one in Burnaby, site of a bowling alley near the Holdom SkyTrain Station, worth $28.8m. The problem was that Liu’s deal was meant to deceive investors and lenders. A bogus Purchase and Sale Agreement showed a purchase price for the Brentwood property of $38.8m, and stated a $10m deposit had been paid. That was false.

In December 2012, Lee advised purchaser Liu that he is not going to proceed with the sale of the properties. Liu started legal action to enforce the illegal, fraudulent sale. The BCSC found his purchase agreements were “unenforceable due to illegality”.

In 2022 it was revealed Chinese national Lui is the beneficial owner of 65 properties, 64 through Carthew Registry Services. Carthew Registry Services was named as a defendant in an Alberta lawsuit alleging real estate fraud.

Owners of the timeshare leases logically concluded that no resort and no rebuild equals no maintenance fees. Xiao Dong Liu has other ideas.

“We write with respect to your lease agreement dated for reference the 27 day of Mar, 2024bearing lease number xxxxxxxxx (the “Lease”).

You are in default of payment of your maintenance fees since at least October 19, 2023, and the current balance owing to Lake Okanagan Resort as of October 19, 2023 is $1540.83.

Pursuant to the provisions set out in the Lease, we hereby provide you with written notice that:

1. You have been in default of the Lease since at least October 19, 2023; and

2. Given that there has been over 90 days since the default, Lake Okanagan Resort has the right to terminate the Lease.

If you do not make payment of the $1540.83 owed to Lake Okanagan Resort by April 5, 2024, then Lake Okanagan shall exercise its right to terminate the Lease effective April 6, 2024.

Upon the Termination of the Lease: (1) Lake Okanagan Resort shall be entitled to the full and exclusive right to use and occupy the lands free and clear of all rights of the Vacationer pursuant to the Lease, (2) Lake Okanagan Resort shall not be obliged to account to the Vacationer for the proceeds of any income derived from the lands, and (3) Any money derived from the lands shall be the sole and exclusive property of Lake Okanagan Resort.

Upon the Termination of the Lease, the Vacationer shall be release from all obligations set out in the Lease, save and except for the $1540.83 and/or any other liabilities outstanding as of April 5, 2024.

Balances due can now be settled by mailing a cheque to P.O. Box 32625, Richmond, BC, V6X 3S1 Or you can e-transfer to our account. The email address for e-transfer is: ar@lakeOkanagan.com

Xiao Dong Liu bought April Point Resort on Quadra Island and Painter’s Lodge in Campbell River from the Oak Bay Marine Group in 2017. Many recent reviews of both resorts again reflect zero maintenance, filth, and poor service.