Former CIBC trader fined, banned for life

Jules Mangin also received a lifetime ban from the securities industry, the Investment Dealers Association of Canada said yesterday. An IDA panel ordered Mangin to pay a $295,000 fine, plus $207,173 in disgorgement of ill-gotten gains and $10,000 in costs.

The Toronto Star
February 17, 2005

Former CIBC trader fined, banned for life
Madavi Acharya-Tom Yew

A former trading desk supervisor at CIBC World Markets Inc. in Toronto has been ordered by regulators to pay penalties of more than $500,000 for his part in a scheme that used the bank's money to make illicit trades.

Jules Mangin also received a lifetime ban from the securities industry, the Investment Dealers Association of Canada said yesterday.

An IDA panel ordered Mangin to pay a $295,000 fine, plus $207,173 in disgorgement of ill-gotten gains and $10,000 in costs.

"This is certainly one of the highest fines that has been meted out for an individual," said Jeff Kehoe, director of enforcement litigation for the IDA. "This was a form of misappropriation. When we get into that type of situation, we take a very hard line."

Neither Mangin nor his lawyer could be reached yesterday.

Mangin admitted that in February 2001, he opened an account for an unidentified acquaintance into which he deposited a cheque for $167,000 (U.S.) payable to CIBC World Markets.

The pair agreed to split profits from illicit trading in the account, an IDA panel was told during a hearing earlier this month.

From June 2001 to August 2003, Mangin conducted trades in the account even when there was not sufficient funds to do so, a practice known as free-riding. Mangin manipulated trade tickets in order to avoid detection, the IDA panel found.

He admitted that he often did not indicate the account number on trade tickets when transactions were conducted. He would wait until it was clear whether the trade had made money, then allocate it to either his associate's account or, if it was unprofitable, to the bank's inventory account where CIBC took the loss.

In total, about $790,000 was withdrawn from the account from February 2001 to September 2003, when he was fired from CIBC.


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