When Coromandel Properties collapsed in 2023, it left C$700 million ($497 million) in debt spread across 16 properties in Metro Vancouver — the first in a wave of real-estate insolvencies to hit the region, according to the Canadian property publication Storeys (Storeys, 2025). Now a lawsuit playing out in the Supreme Court of British Columbia alleges that the company's CEO used investor money to buy millions of dollars of contemporary art, never displayed it, and pledged it as collateral for personal loans.

The claim was filed in 2023 by Junchao Mo, a part-owner of Coromandel Properties who lives in Macau, and his sons. They allege that CEO and co-owner Jerry Zhong lured them into investing in Vancouver-area real-estate projects through five family trusts and three British Columbia numbered companies. Mo did not speak English, resided primarily outside BC, and entrusted Zhong to manage his Canadian business interests and investment funds, according to the lawsuit (The Art Newspaper, 27 July 2026).

Between April 2021 and March 2023, the lawsuit alleges, Zhong caused Coromandel to purchase 12 paintings and two sculptures with a combined value of C$6.9 million ($4.9 million). The collection reportedly included four works by Jean-Michel Basquiat, four by Javier Calleja, and one each by Rashid Johnson, George Condo, Sam Gilliam, Tania Marmolejo, Tammi Campbell and Jordy Kerwick. The art was bought from two sources: the Centre of International Contemporary Art Vancouver (CICA) and Talisman Gallery, which operated as a pop-up in 2023 and does not appear to have a brick-and-mortar location or active online presence.

The lawsuit claims the art was purchased while Coromandel was in financial distress — the company sought creditor protection under the Companies' Creditors Arrangement Act in February 2023. According to the plaintiffs, the artworks were never displayed after Zhong orchestrated their purchase. Instead, the collection was used to secure a line of credit of up to C$3.3 million ($2.4 million) from a US bank. Zhong allegedly drew on that credit and misappropriated the funds for his own use.

CICA lists Coromandel Properties as one of its main corporate sponsors. Talisman Gallery operated in collaboration with developers and CICA during its pop-up run.

Zhong denies all allegations. He states he did not engage in a conspiracy to embezzle, misappropriate or conceal investment funds. The case is ongoing. A lawyer for defendant Jason Wang — who, along with his law firm, faces three related lawsuits — asked the court to hear them together, and the judge granted the request.

Raymond Louie, identified in a 2022 BC government news release as Coromandel's chief operating officer, was named in connection with a separate announcement about the Chinese Canadian Museum in Vancouver. One of the Coromandel developments at issue in the lawsuit was a condo complex in Vancouver's Oakridge area, as reported by Yahoo News Canada (Yahoo News Canada, 18 July 2026). BC corporate registry records show the company's corporate entities were incorporated between 2015 and 2021.

The allegations have not been tested in court.