Email to Hon. Ralph Goodale, Minister of Finance, Government of Canada

The improper lending practices that are very well documented in Oudovikine's situation may be quite widespread in Canadian financial institutions. The greatest wrongdoings occur within the small business lending market that serves franchises.

If the modern franchise relationship is understood correctly, statements that appear at first to be ludicrous, becomes quickly possible and then probable.

I have attached a paper entitled Franchising Opportunism and a diagram in excel format. This report provides a conceptual framework to the franchise relationship, shows the crucial role played by financial institutions and explains why a bank would react so maliciously.

Email to Hon. Ralph Goodale, Minister of Finance, Canada

To: Hon. Ralph Goodale, Minister of Finance, Government of Canada
From: Les Stewart, Canadian Alliance of Franchise Operators
Date: April 25, 2005

I understand you received a copy of an email on April 22, 2005, sent by our member and my client Mr. Andrei Oudovikine to Mr. John Hunkin, Canadian Imperial Bank of Commerce, CIBC.

The improper lending practices that are very well documented in Oudovikine's situation may be quite widespread in Canadian financial institutions. The greatest wrongdoings occur within the small business lending market that serves franchises.

If the modern franchise relationship is understood correctly, statements that appear at first to be ludicrous, becomes quickly possible and then probable.

I have attached a paper entitled Franchising Opportunism and a diagram in excel format. This report provides a conceptual framework to the franchise relationship, shows the crucial role played by financial institutions and explains why a bank would react so maliciously.

Bias, Refusal to Deal & Delay
After ten months, Oudovikine's complaint is now with the Ombudsman for Banking Services and Investments, OBSI, and all indications are that their report will be biased, self-serving and irrelevant. Deputy Ombudsman Doug Weber continues to avoid a personal meeting with Oudovikine and relies solely on CIBC conversation while ignoring the total void of mandatory document production.

CIBC admits to taking and spending over $300,000 from Oudovikine's current account based on a contract in which they were not a party. Oudovikine has run afoul of the Canada Revenue Agency because CIBC can't produce a receipt for any of the assets they say they purchased.

Messenger
Mr. Oudovikine is being severely harassed because he is unfortunate to be one of hundreds of franchisees that have suffered debilitating financial loss because of the banks' systemic abuse of their dominant position. My involvement makes him that much more of a target for an institution that you regulate.

I would ask that your office intervene to:
• instruct CIBC to stop intimidating Oudovikine,
• review the documents that the OBSI has received from CIBC, and
• commit to investigate predatory lending allegations within the franchise industry.

We would be pleased to assist your office with this matter and look forward to a quick reply.

Sincerely,

Me. Les Stewart
Canadian Alliance of Franchise Operators

cc:
Mr. Nick Le Pan
Superintendent
Office of the Superintendent of Financial Institutions

Mr. Andrei Oudovikine


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