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“If someone applies to immigrate to a particular province, that is where they are undertaking to reside,” Mr. Alexander said.

“While we respect provincial jurisdiction, as a matter of fairness we cannot send federal transfer payments to one province for someone living in another. That saddles the other provinces with unfair resettlement costs, such as health care and education.”

Quebec’s Parti Québécois government, which announced changes to the investor immigrant program Thursday to increase the number of French-speaking applicants, rejected the fraud charge.

“All immigrants, regardless of their chosen program, have the right to move and settle where they want to in Canada once they’ve obtained permanent residency,” said Jonathan Lavallée, spokesman for the ministry of immigration and cultural communities.

“To say that this is a sham is absolutely wrong.”

To say that this is a sham is absolutely wrong

Using statistics from the Quebec government, Citizenship & Immigration Canada estimates more than 90% of those accepted by Quebec’s program end up living in other provinces. Most go directly to Greater Vancouver.

Mr. Lavallée said Quebec expects 5,000 to 7,000 business immigrants in 2013, most as investor immigrants. This compares with 2,615 immigrants in 2012 in Ottawa’s program.

Mr. Kenney told the parliamentary committee participants in the Quebec program are engaged in fraud.

The Canada Border Services Agency has been ordered to charge people who make misleading statements in their applications, which is a violation of the Citizenship & Immigration Act.