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

This is the most flagrant of several acute examples of bad faith. Mr. Lachlan Maclachlan, CIBC Ombudsman refuses to deal with Oudovikine. It has taken ten months of hundreds of emails and telephone calls to be refused documents that, by federal law, should be available within ten business days. Because of CIBC's breaches under the Bank Act, Oudovikine is in breach of his duty to the Canada Customs and Revenue Agency. CIBC won't and probably can't provide a single receipt for the $314,350.50 they spent without the Oudovikine's approval.

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

To: Mr. Doug Weber, Deputy Ombudsman, Ombudsman for Banking Services and Investments, OBSI
From: Mr. Les Stewart, President, Canadian Alliance of Franchise Operators
Date: April 20, 2005

Mr. Weber,

I appreciate your email of April 19, 2005 but am greatly concerned with its glaring omissions.

My members and clients, Andrei and Alex Oudovikine, have provided you with exceptionally compelling evidence, strictly based on documents that support their allegations against the Canadian Imperial Bank of Commerce (CIBC).

We allege that the CIBC and its officials have: transferred our money and loan funds without our authorization, bank lending fraud, code of ethics violations, serious privacy breaches and extreme bad faith. Your email brushes all of those concerns aside and reduces their extremely serious concerns to a "disagreement" in which you infer they are responsible for.

You continue to ignore explicit federal law requirements and investigate as if missing documentary evidence, required by federal law, is inconsequential.

Unauthorized Transfer of Money
CIBC transferred all the loan proceeds plus $80,311.88 of the Oudovikine's money from their current account on August 21 and 22, 2003 without their authorization. Many Canadians may consider that behaviour to be theft and those who cover-up at least, if more, as culpable as those that committed the original criminal offence.

Bank's Due Diligence
As you well know, the Bank Act and Regulations, Canada Small Business Financing Act and Regulations, and Industry Canada Guidelines requires financial institutions to maintain documents showing their lending duty (due diligence, etc.) were performed. CIBC has refused to provide those documents to us and we assume from your silence, has done the same to the OBSI. Ms. Fedorink breached her due diligence duty as a banking official on an Industry Canada loan application that has directly caused my members' financial distress.

Privacy violations
The Personal Information Protection and Electronic Documents Act (PIPEDA) requires written authorization for one company to talk to another about a third party. The OBSI required this document before investigating but you seem to imply that CIBC did not require such document in dealing with a third party(ies).

Extreme bad faith
Mr. Andrei Oudovikine had his personal accounts frozen by CIBC on April XXX and money was taken from his accounts . He was told by Mr. Jerry Mendes, Senior Financial Adviser and Mutual Funds Representative on April ZZZ, 2005 that the money would only be returned if he signed a very general waiver of legal rights see here and that there was no need to seek legal advice. Upon my advice, Oudovikine refused to sign. He also spoke to Mr. Matthew Weir, Manager of Account Monitoring Group.

This is the most flagrant of several acute examples of bad faith. Mr. Lachlan Maclachlan, CIBC Ombudsman refuses to deal with Oudovikine. It has taken ten months of hundreds of emails and telephone calls to be refused documents that, by federal law, should be available within ten business days. Because of CIBC's breaches under the Bank Act, Oudovikine is in breach of his duty to the Canada Customs and Revenue Agency. CIBC won't and probably can't provide a single receipt for the $314,350.50 they spent without the Oudovikine's approval.

Conclusion
A serious wrongdoing has occurred and we have communicated this to you as clearly as possible. You seem much more interested in the statements of a commissioned salesman than in finding out where why over $300,000 was taken without its owners permission.

I would suggest that you first deal with the numbers and then deal with confidentiality issues once all of the necessary documents (see below).

The Office of the Privacy Commissioner of Canada has three active file investigations ongoing and the Financial Consumer Agency of Canada and Industry Canada's, Small Business Administration have an active file. The Toronto Police Services, Fraud Squad has Oudovikine's statement and one of the largest national media outlets has been tracking his case.

A failure to provide a document-justified decision based on a comprehensive and unbiased investigation will bring discredit not only to the OBSI, its board and officers but to those agencies to which the OBSI reports.

The standard by which your decision will be judged will be the repeated requests Oudovikine has made to you, summarized by his email of April 4, 2005 (see below). These are not "nice to have" documents; they are statutory requirements. If CIBC cannot provide them to you, you have no choice but to rule in the franchisee's favour.

Please do not question our persistence in this matter. We have acted in good faith and with a tremendous amount of patience, professionalism and discretion.

You, of course, are free to decide what you will. However, I assure you that if the documents do not justify your position, the assumption will be that you and the OBSI have actively conspired to cover-up what might prove to be a criminal act and subsequent wrongdoing.

Mr. Les Stewart, MBA
Canadian Alliance of Franchise Operators
705-737-4635 Tel
ten.ofac|trawets.sel#ten.ofac|trawets.sel
www.cafo.net


From: Andrei Oudovikine
To: Doug Weber, Deputy Ombudsman, OBSI
Date: April 4, 2005

1. I would like to ask CIBC to provide me with copy of justification of Estimated annual gross revenue ($473,506), 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. I would like to ask CIBC to provide me with copy of Canada Small Business Financing Act Loan Registration Form and CIBC Canada Small Business Financing Act (CSBFA) Business Improvement Loan (BIL) Application for $129,500) Credit C.

3. I would like to ask CIBC to provide me with copy of Business Plan and Cash flow projections for business start-ups (minimum 12 month period) that were used to access repayment ability of the borrower to serve this loan.

4. I would like to ask CIBC to provide me with justification of maximum loan amount under CSBFA and evidence, to support the cost of assets/improvements financed for $232,000 - total amount of the loan (i.e. invoices, contracts, purchase and sale agreements, etc.).

5. 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).

6. 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.).

7. 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).

8. I would like to ask CIBC to provide me with copy of financial assessment of repayment ability of the borrower.

9. I would like ask CIBC to provide me with copy of signed letter authorizing CIBC (Sue Fedorink) to do any funds transfer (August 21, 2003 $129,499.62) out of my account.

10. I would like to ask CIBC to provide me with written authorization to perform this draft purchase or with copy of the draft with my signature. $129,499.62 Credit C.

11. I would like to ask CIBC to provide me with written authorization to perform this draft purchase or with copy of the draft with my signature. $184,850.88 Credit B.

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

13. 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).

14. 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).

15. I would like to ask CIBC to provide me with signed copy of request or authorization to extend overdraft protection limit from $2,500 up to $7,000 (October 1, 2003).


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