U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

CIBC World Markets Corp. and Canadian Imperial Holdings Inc.

On July 20, 2005, the SEC instituted administrative and cease-and-desist proceedings against CIBC World Markets Corp. and Canadian Imperial Holdings Inc. The SEC alleged that the respondents improperly financed market timing hedge funds and engaged in deceptive market timing and late trading of mutual funds to the detriment of long-term investors in those funds. As part of the settlement, CIBC World Markets Corp. and Canadian Imperial Holdings Inc. must pay at least $100 million in disgorgement and $25 million in a civil penalty for distribution to defrauded investors. For more information on the SEC's action, you can read In the Matter of Canadian Imperial Holdings Inc. and CIBC World Markets Corp., at 33-8592 and 33-8593 (July 20, 2005).

Under the terms of the SEC's order, an independent distribution consultant (IDC) must submit a Distribution Plan to the SEC to distribute the Fair Fund containing $125 million to injured investors.  An IDC has been appointed and is developing a distribution plan.  Once the IDC completes the Distribution Plan, notice of the proposed Distribution Plan must be published for at least 30 days, specifying how copies of the proposed Distribution Plan may be obtained, and describing the process by which persons may comment on the Plan.  A link to that Notice will be provided on this website and the Notice shall be published in the SEC Docket. 

The SEC anticipates that Notice of the Plan will be published in early 2009. After publication and comment, the proposed Distribution Plan will be submitted to the SEC for approval.  When the SEC approves the proposed Distribution Plan, with modifications as appropriate, distributions will begin.



Modified: 12/10/2008