Email to Mr. Doug Weber, Ombudsman for Banking Services and Investments, OBSI

I also would like to state that investigation of Roger Noble - Sue Fedorink and Roger Noble – Sandra Fitzgerald relationships are important but our core complaint is “questionable small business lending practice”. Office of Privacy Commissioner of Canada has three open files in regards of privacy violations committed by CIBC and they are being investigated at this present time.

Email to Mr. Doug Weber, Ombudsman for Banking Services and Investments, OBSI

To: Mr. Doug Weber
Deputy Ombudsman
Ombudsman for Banking Services and Investments

From: Mr. Andrei Oudovikine

Date: March 27, 2005

Subject: Reply to your March 28, 2005 email

Mr. Weber,

Thank you very much for such a quick response, all your efforts to investigate and resolve this issue is much appreciated.

Please find below the answers to your email of March 28, 2005. If you would like any clarifications, please call me. Thank you.

Mr. Andrei Oudovikine
xxx-xxx-xxxx Tel


As you have indicated in your e-mail from March 22, 2005, CIBC has sent you a complete file in regards of my loan for OBSI Review. Assuming accuracy and completeness of the file I would like to ask you to provide me with following documents, which must be on file according to Canadian Small Business Financing Act (CSBFA)

There are three documents:
A. CIBC Sue Fedorink, Establish the following Credits dated August 8, 2003, 5 pages
B. Canada Small Business Financing Act Loan Registration Form dated August 19, 2003, 2 pages.
C. CIBC Canada Canadian Small Business Financing Act (CSBFA), Business Improvement Loan (BIL) Application dated August 19, 2003, I page

Document A. CIBC Sue Fedorink, Establish the following Credits

Document B: Canada Small Business Financing Act Loan Registration Form
1. Justification of estimated annual gross revenue of $473,506 (Box 9).

, which was used to approve the loan (Canada Small Business Financing Act Loan Registration Form: Line 9 and CIBC Canada Small Business Financing Act (CSBFA) Business Improvement Loan (BIL) Application)

2. Business Plan and Cash flow projections for business start-ups (min 12 month period)

3. I would like CIBC to provide me with evidence, to support the cost of assets financed for $232,000 - total amount of the loan (i.e. invoices, contracts, purchase and sale agreements, etc) for the equipment which was appraised at $40,000.

As you well aware Mr. Weber overall credit limit was $232,000

Credit A: Operating Line $2,500
Credit B: Business Improvement Loan $100,000 Purpose: (leasehold and equipment)
Credit C: Business Improvement Loan $129,500 Purpose: (leasehold and equipment)

If you take a look at Canada Small Business Financing Act Loan Registration Form Page 2,
You can see that Line 26, Lease Hold Improvements (Amount of Loan to be registered) $100,000, Line 28, Equipment (Amount of Loan to be registered) is $0, TOTAL AMMOUNT OF LOAN TO BE REGISTERED $100,000.

In regards of this I would like to ask CIBC to clarify several things:

Why Total Amount of the loan to be registered is $100,000 but Not $232,000
We have only Canada Small Business Financing Act Loan Registration Form and CIBC Canada Small Business Financing Act (CSBFA) Business Improvement Loan (BIL) Application for $100,000 Credit B.

We do not have same documents for Credit C: $129,500. Please provide me with Canada Small Business Financing Act Loan Registration Form and CIBC Canada Small Business Financing Act (CSBFA) Business Improvement Loan (BIL) Application for Credit C: $129,500

4. I would like to ask CIBC to provide me with evidence, to support that the assets financed by the loan, were paid (i.e. cheques, vendor's receipted invoice, or vendor's declaration)

5. I would like to ask CIBC to provide me with Copy of Asset Purchase & Sale Agreements with a detailed breakdown of asset, vendor, model type, quantity, sale price, amount paid for each asset leasehold improvements, etc.)
6. I would like to ask CIBC to provide me with Copy of Orders/Invoices if business is disposing or substituting any assets (with a detailed breakdown of asset, vendor, model type, number, sale price, date and amounts paid for an assets)

7. I would like to ask CIBC to provide me with copy of financial assessment of repayment ability of the borrower (According to CSBFA, Chapter 8)

8. I would like to ask CIBC to explain the following fact: As you Mr. Weber stated in your e-mail from March 8, 2005 “The Statement shows the loan proceeds deposited to the company’s account and drafts were purchased payable to Country Style”.

My current account number (Andralex Food Services) is 01902-9103511 which was open by Sue Fedorink at Bloor and Dufferin branch, which is being used to perform all transaction in regards of our business.

First Draft to Country Style for $129,499.62 was withdrawn from account 33562-2743345 (according to www.cibc.com Transit number 33562 does not exist) and Second Draft to Country Style for $184,843.38 was withdrawn from account 01902-2743345.

As you can clearly see none of these two accounts (money were withdrawn from) corresponds to my account number and it means money have NEVER been withdrawn from account 01902-9103511. But all loan payments are being taken from my account- account 01902-9103511.

9. I would like ask CIBC to provide me with copy of signed letter authorizing Sue Fedorink to discuss my personal financial matters and release of information to a third party (Roger Noble). Similar authorization Letter which was requested by Jeff Brown on November 4, 2004.

10. I would like ask CIBC to provide me with copy of signed letter authorizing Sandra Fitzgerald to discuss my personal financial matters and release of information to a third party (Roger Noble).

11. I would like ask CIBC to provide me with copy of signed letter authorizing Sue Fedorink to do any funds transfer from my accounts on my behalf.

12. I would like to ask CIBC to provide me with names of the people who signed this drafts, I see Sue Fedorink’s signature on one of them. Who are the other three persons who put their signatures on a drafts?

I also would like to state that investigation of Roger Noble - Sue Fedorink and Roger Noble – Sandra Fitzgerald relationships are important but our core complaint is “questionable small business lending practice”. Office of Privacy Commissioner of Canada has three open files in regards of privacy violations committed by CIBC and they are being investigated at this present time. I think we can deal with privacy issues later after main issue: “questionable small business lending practice” is being resolved.

In regards of Criminal Fraud Investigation by Police. As I have stated in my previous e-mail on March 28, 200,5 that investigation was launched against Country Style Donuts not against CIBC (at least at this moment), and I was not the person who has submitted initial complaint to Police which triggered the investigation. I was one of the witnesses who has come forward and has been interviewed by Detectives in regards of this investigation. After this interview I have been told by officers that they will continue investigating case against Country Style Donuts but they think that to perform such a fraud it has to be an “inside man”.

I would to ask you to forward requested documents to me and Mr. Les Stewart or ask CIBC to forward requested documents.

Again, thank you very much for your help.

Best regards,

Andrei.


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