CIBC division fined $700,000 over trades
PAUL WALDIE, 22 December 2004
The brokerage arm of Canadian Imperial Bank of Commerce has agreed to pay a $700,000 fine and change the way it supervises clients who have direct market access accounts. The agreement is part of a settlement approved yesterday between CIBC World Markets Inc. and Market Regulation Services Inc., or RS, over allegations the brokerage failed to stop alleged manipulative trading by a pair of clients. Two Toronto-based CIBC World Markets employees, Scott Mortimer and Carl Irizawa, also agreed to pay fines of $50,000 and $20,000 respectively. The firm and the two individuals will also pay an additional $115,000 to cover the costs of the investigation.
