Hickman Motors sues Mount Pearl man over alleged fraud days after CBC story airs

A Mount Pearl man accused of making fraudulent deals to resellvaluableitems 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 Chanceypaid 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 asksquestions after CBC story aired

The St. John's-based auto dealer said Chanceypromised to broker the sale of used cars seized in the United States at a discount.

Court filings claimHickman 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 againstChancey 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.

Hickmansaid 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 Courtbuilding 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 USdeal 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 constructionequipment 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 constructionequipmentever 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 DSLvehemently deniedany 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 Chanceyrefused to tell him where the construction equipmentwas. Lyondemanded his money back, and Chancey agreed.

Weeks ticked by and no payment was made, so Lyon turned to the courts.

• Read more from CBC reporter Ryan Cooke

On Sept. 21, 2018, a judge in Nova Scotia frozebank accounts belonging toChancey and his numbered company, and ordered he provide the whereabouts of Lyon's money by adeadline.

When the deadline passed without any such evidence produced, the judge ruled Chanceyand thenumbered company werein 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 Americanauto 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 allegesChanceypromised to deliver 744 vehicles seized at the United States border. Coxpaid him a $1,000 USdeposit for each vehicle about $1 million Canadian in total.

The company is suing himfor its money back, butit believes the cash is stashed in an Icelandic bank account.

Chanceypreviouslyrefused to comment on the matter when contacted by CBC News.

He's due in a St. John's courtroom on June 17.

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