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

Also, every time you or I ask CIBC to present copies of loan documents (all of which CIBC had to create and maintain according to the law), CIBC delays responding, refuses to deal or creates highly improbable new stories. Now they simply go on holiday.

CIBC and OBSI has all the time in the world for this process while we are losing $30,000 per month that is a severe hardship on our families. If the CIBC is engaged in a war of attrition, the OBSI is acting as a loyal and subservient ally.

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

To: Mr. Doug Weber, Deputy Ombudsman, Ombudsman for Banking Services and Investments
From: Andrei Oudovikine
Date: May 3, 2005

Mr. Weber,

Thank you for your quick response informing us of your questions to CIBC.

However, I am very disappointed and frustrated by the delay. Is it reasonable to rely on one contact person's vacation schedule when we are dealing with such a large financial institution? This reason appears to be very insincere.

Double Standard
Apparently, CIBC is not taking the OBSI investigation seriously at all. When you ask us a question or request some documentation, we respond in a matter of hours or even minutes.

Also, every time you or I ask CIBC to present copies of loan documents (all of which CIBC had to create and maintain according to the law), CIBC delays responding, refuses to deal or creates highly improbable new stories. Now they simply go on holiday.

CIBC and OBSI has all the time in the world for this process while we are losing $30,000 per month that is a severe hardship on our families. If the CIBC is engaged in a war of attrition, the OBSI is acting as a loyal and subservient ally.

Documentary Evidence
Quoting your own rules, I stress once again, that this investigation is about CIBC failing a well established Canadian Small Business Financing Act and Regulations (CSBFA) loan process based on the documents, not heresy evidence.

You confirmed during our meeting that CIBC has not provided you with any documents that we have specified. You have received testimonies of Sue Fedorink, Sandra Fitzgerald and Jeff Brown. They all confirmed that no documents existed and that they failed to do proper due diligence on the franchised business. You said in your March 15, 2005 e-mail that CIBC has provided you with their complete file.

Based on the documentary evidence, it is clear that CIBC has failed to create or maintain the mandatory documents as required by the CSBFA, Regulations and Guidelines. Because of this failure, CIBC has violated the Bank Act and the Personal Information Protection and Electronic Documents Act.

An OBSI Decision
Please perform your duty and write your report.

I urge you to make your decision regarding CIBC's credit process failure based on the documents you have already received. At this stage, any CIBC "Hail Mary" documents must be viewed to have very little credibility.

After waiting ten months, we are not interested in CIBC's bad faith delay tactics any longer and we will insist you not collaborate with them any further. We believe we have been more than patient, forthcoming and honest. If CIBC is engaged in a war of attrition with my family, I can state clearly that the OBSI is no ally of mine.

If you continue to favour CIBC by accepting their insincere excuses, we believe the OBSI investigation and subsequent decision will, upon review, be seen to be tainted and bring disrepute onto the financial institution industry.

Please advise the date when I can expect your decision.

Mr. Andrei Oudovikine

cc:
Ms. Susan Kadis, MP
Thornhill

Mr. Andy Rapoch
Financial Consumer Agency of Canada

Mr. Nick Le Pan
Office of the Financial Institutions of Canada

Mr. Les Stewart
Canadian Alliance of Franchise Operators


Brought to you by WikidFranchise.org

Risks: Able to finance and sell negative cash flow franchise on crooked appraisals, Andrei Oudovikine, Appearance of government oversight, Arthur Wishart Act (Franchise Disclosure), 2000, Canada, Asset-based lending, Auditor General of Canada, Bad faith and unfair dealings, Bank Act, Canada, Bank violates federal privacy laws, Bank complaint process protects those who pay their salaries, Bank pays franchisor with franchisee's funds, Bank refuses to provide mandatory documents, Bank violates federal privacy laws, Bank won't finance deal because they know something you don't, Bankruptcy, Bankruptcy, first the company and then you personally, Banks, Banks allegedly mastermind fraud, Banks are industry cheerleaders, Banks collude, Blocking for the industry, Canada Revenue Agency, Canada Small Business Financing Act, Canada Small Business Financing program, Canadian Alliance of Franchise Operators, CAFO, Canadian Franchise Association, CFA, Canadian Imperial Bank of Commerce, CIBC, Code of ethics, a joke, Code of ethics, almost never enforced, Coerced waiver of legal rights, self, Collaborators, Complaint letter to franchisors trade association, Conspiracy to commit fraud, Conspiracy to hide the true nature of events in order to avoid detection, Controlling, trapping or defeating the franchisee, Credence good fraudulent expert, Credence goods: taking advantage of the innocents, Credibility, Criminal charges, Debt traps, Deceptive business practices, Earnings claim made, Externalities: cheap business decision when someone else pays, Financial Consumer Agency of Canada, Franchise banker, Franchise business model perfectly suited to enable massive fraud, Franchisee leader, Franchising is the most lucrative form of commercial lending, Franchising Opportunism paper, Franchisor financing: faster in, out & resold (serial bankrupts), Franchisor knew they were selling money losing concepts, FranWhack: a system that is not investment-worthy, Fraud, Fraud financed by rigged appraisals used equipment & leaseholds, Fraudster banker, Fraudster broker, Fraudster franchisor, Futility of taking legal action, Government guaranteed loan approved extremely quickly, Government guaranteed loan filled out by sales agent, Government guaranteed loan made without proper security, Government guaranteed loan misapplied, Government guaranteed loan program very attractive to fraud, Government guaranteed loans, Government guaranteed loans used a great deal in franchising, Government guaranteed loans: program loses $1, franchisee families lose $10, Government inquiries into franchise abuse allegations, Government investigation, Government inquiries into franchise abuse allegations, Ideas once outrageous are now considered normal, Illusion of government oversight, Imbalance of information and power, Immigrants as prey, Incompetent or predatory: for the small business investor, the outcome is the same, Industry Canada, Industry in disrepute, Industry elites like this regulator, Knew or could have reasonably been expected to know, Lender's due diligence not done properly, Lending duty, Lending duty never enforced via regulation or litigation, Lending is subject to expert fraud because it is a credence good service, Lending risk much lower, Les Stewart, Loan pushing, Loan servicers and brokers attracts fraud, Minister of Finance, Canada, Ministry of Government and Consumer Services, Ontario, Misrepresentations, Most lucrative form of commercial lending, franchising, Multi-tradename franchisors are often the most ruthless, Office of the Superintendent of Financial Institutions, Canada, Ombudsman for Banking Services and Investments, Canada, Ombudsman, franchisee must sign gag order 1st, Ombudsman, funded by franchisors & suppliers, Ombudsman, risk of information going to franchisor, On Cooling the Mark Out (Erving Goffman), Only saw bank official once before loan granted, Opportunism (self-interest with deceit), Police intervention, Predatory actions, Predatory franchise lending, Predatory lending, Privacy breaches a prerequisite for fraud, Privacy Commissioner of Canada, Refuses to accept complaint, Refuses to investigate complaints, Regulator already has enough power but they don't use it, Retaliation, Right to associate, Right to associate and right to harass, Royal Canadian Mounted Police, RCMP, Sales agent shenanigans, Shame - humiliation emotion, Sincerity, Some of the nastiest predators run several tradename systems, Sunshine is the best disinfectant, Symbiotic relationships (industry, banks, lawyers), Taxpayers end up paying for private gain, Termination threats, The game is rigged, The Toronto Star, Threats of physical violence, Theft, Tony Martin, Towers of gold, feet of clay, Trap for the trusting, U.S. subprime mortgage scandal, Unauthorized funds transfer by bank, Undue influence, War of attrition, Watchdog fails to bark, Willful blindness, Write a letter of complaint, Canada, 20050503 Email Weber

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License