MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Thursday, April 15, 2004 Hedge Fund Financier Faces Two Class Actions Two law firms are following the money in the mutual fund scandals, filing lawsuits against the entities that financed the hedge funds that made deals with the clearing firms and managers to place late trades in the funds that investors owned. Schiffrin & Barroway, LLP, Cynwyd, PA, and Cauley Geller Bowman & Rudman, LLP both filed class action lawsuits on behalf of investors in MFS funds against the people and entities who arranged the financing that hedge funds allegedly used to make illegal trades that ultimately harmed investors. Paul Flynn is named in both complaints for his actions in arranging financing for Canary Capital Partners and Samaritan Asset Management. Also named in the two suits are Flynn's former employer Canadian Imperial Bank of Commerce (CIBC), and CIBC affiliate Canadian Imperial Holdings, Inc. (CIHI). Both were filed in the United States District Court for the Southern District of New York. Flynn was employed at CIBC from 2001 to 2003, when he used his position there to arrange financing through CIBS affiliate CIHI for Canary Capital Partners and Samaritan Asset Management. The two leveraged hedge funds then allegedly used the money to place illegal and deceptive trades in MFS funds through Security Trust. Canary, Samaritan and STC are not named in either suit. The complaint states "From 2001 to 2003, defendant Flynn, while employed as a Managing Director of Equity Investments at CIBC, substantially assisted STC and the Hedge Funds in engaging in late trading and deceptive market timing." Flynn is also a defendent in the case brought by the New York attorney general against Grant Seeger and William Kenyon of Security Trust Company. Schiffrin & Barroway has also filed class action suits against PIMCO Mutual Funds and FleetBoston Financial Corp. Cauley Geller Bowman & Rudman have current class action cases against more than twenty fund families. CIBC faces another class action lawsuit filed April 9, 2004 by Milberg Weiss Bershad Hynes & Lerach, LLP, New York, NY. Printed from: MFWire.com/story.asp?s=7022 Copyright 2004, InvestmentWires, Inc. All Rights Reserved |