CIBC World Markets Corp. was fined $200,000 (U.S.) by the New York Stock Exchange for an improper stock loan deal.
The Toronto Star
October 6, 2006
CIBC World Markets fined for stock deal
CIBC World Markets Corp. was fined $200,000 (U.S.) by the New York Stock Exchange for an improper stock loan deal.
The regulatory arm of the exchange also levied a $75,000 fine against Nandra Group Inc., which was recently acquired by Belzberg Technologies Inc., in connection with the same transaction.
"In this case, a below-market transaction that included a sham finder's fee went undetected because of inadequate supervision, including no review of revealing … emails," said Susan Merrill, chief of enforcement at NYSE Regulation.
In addition, Jonathan Gutman, a principal of Nandra, was censured, suspended and, along with Nandra, barred from future securities lending.
Nandra and Gutman have also undertaken for a three-year period to employ a compliance official and to provide notice of organizational or operational changes.
The regulator said a disciplinary action has also been started against a former stock loan trader at CIBC.
Canadian Press
Brought to you by WikidFranchise.org
Risks: Canadian Imperial Bank of Commerce, CIBC, Banks, United States, 20061006 CIBC World
