CIBC reaches settlement with former managing director

Date: Monday, December 1, 2008
Author: Investment Executive

Bank enters into consulting arrangement with Flynn

CIBC announced Friday that it has reached an “amicable resolution of all outstanding matters” with Paul Flynn and has entered into a consulting arrangement with the former managing director of equity investments for Canadian Imperial Holdings Inc.

Flynn had faced charges of allegedly helping hedge fund clients make illegal trades, but the charges were later dropped.

Flynn was arrested in February 2004 and faced five felony charges levelled by Eliot Spitzer, who was New York State attorney-general at the time,and civil charges from the U.S. Securities and Exchange Commission.

The charges were later dropped and a judge dismissed a civil fraud case.

In statement announcing the deal, the bank said it was “sympathetic to the difficulties Mr. Flynn has experienced over the past five years.”