Summary

Re: Jastram Properties Ltd. v. HSBC Bank Canada (“HSBC”), BCSC Action No. S-162335 (the “Class Action”)

IMPORTANT NOTICE RE: CLASS ACTION SETTLEMENT

You have been identified as a potential Class Member in the Class Action, which is brought on behalf of the following class:

“The Class is comprised of all persons, other than the Defendant, who have provided funds to invest in the Tan Investment Scheme promoted by Virginia Tan before March 21, 2013, which funds went through the HSBC Tan Accounts, and who have received payments from the Scheme which are lesser in total amount than the total principal amount they invested (the “Class”).”

A settlement that has been reached with HSBC and approved by the BC Supreme Court. The Settlement Agreement dated May 10, 2024, and the Order made by the BC Supreme Court on September 18, 2024, approving the settlement, are available for review under the Court Documents Tab at the right.

ELIGIBILITY TO CLAIM

You will be eligible to claim under the settlement if all of the following conditions are met:

You provided funds to invest in the Tan Investment Scheme promoted by Virginia Tan before March 21, 2013;
The funds you provided to Virginia Tan before March 21, 2013, were deposited by Virginia Tan in one of the HSBC Tan Accounts;
You provided funds to invest in the Tan Investment Scheme after March 20, 2013; and
The total of all payments you received from the Scheme after March 20, 2013, whether as interest payments or as a return of money invested, is less than the total amount of funds you provided to invest in the Tan Investment Scheme after March 20, 2013.

If you made a claim under the settlement in the Virginia Tan Class Action, Jastram Properties Ltd. v. Virginia Mary Tan et al., BCSC Action No. S-162335, you will automatically be deemed to have made a claim under the settlement in this Class Action. If you did not make a claim in that settlement, you will be given notice on how to make a claim, in accordance with the terms of the Settlement Agreement.

SETTLEMENT ENTITLEMENT

If you are eligible to claim under the settlement, you will receive a settlement entitlement that is equal to

EITHER

a) An amount equal to 25% of your Eligible Loss, calculated as the total amount you paid for investment in the Tan Investment Scheme after March 20, 2013, less (i) the total amount of payments you received from the Tan Investment Scheme after March 20, 2013, and (ii) any applicable amount of the payment you received from the Virginia Tan Class Action Settlement in BCSC Action No. S-162335, plus applicable interest on your Eligible Loss;

b) Your proportionate share of $1,200,000 based on the proportion of your claim amount under paragraph (a) above to the total amount of claims made under the settlement;

less the Approved Legal Expenses, which will amount to 33 1/3% of your entitlement, along with a prorated share of the approved legal disbursements, plus applicable GST and PST.

HOW TO MAKE A CLAIM

If you made a claim under the settlement in the Virginia Tan Class Action, Jastram Properties Ltd. v. Virginia Mary Tan et al., BCSC Action No. S-162335, you will automatically be deemed to have made a claim under the settlement in this Class Action and you need not do anything more. If you did not make a claim in that settlement, and if you believe you are eligible to claim under the Settlement, you must deliver a Claim Form to Class Counsel together with all available supporting documentation referenced in the Claim Form, by January 3, 2025.

A Claim Form is available under the Claim Form at the right. Claim Forms may be delivered to Class Counsel at mm@hbmlaw.com or by mail to Bennett Mounteer LLP, 400 – 856 Homer Street, Vancouver, BC V6B 2W5.

As also set out in the Claim Form, you must attach two statements to your Claim Form detailing first, the amounts of funds you invested in the Tan Investment Scheme, and second, the amounts you received from the Tan Investment Scheme in relation to your investment.

You must also attach supporting documents which show the amounts you paid (such as cancelled cheques and copies of the promissory notes issued in respect of your investment). Absent evidence to the contrary, in determining your claim, it will be presumed that interest payments were received by you in accordance with the terms of the Promissory Note or other documentation issued to you in relation to your investment in the Tan Investment Scheme. In determining your claim, it will also be presumed that your investment was deposited to the HSBC Tan Accounts if a statement for one of HSBC Tan Accounts shows that an amount equal to your investment was deposited to the account within 7 days of the investment or if other banking documentation can prove that deposit.

If you provided funds to Virginia Tan for an investment before March 21, 2013 but are uncertain whether those funds were deposited by Virginia Tan in the HSBC Accounts, and the payments you received from the Tan Investment Scheme after March 20, 2013 were less than the amounts you invested in the Tan Investment Scheme after 2013, then you should file a Claim Form and Class Counsel will assess whether your claim is eligible for compensation based on the records available to Class Counsel.

If you have any questions about this Notice or require assistance in completing a Claim Form, please e-mail Class Counsel at mm@hbmlaw.com and provide a phone number which you can be reached, and Class Counsel will contact you by e-mail or by phone.

Please do not contact the BC Supreme Court directly regarding this Notice.