The
When the mutual funds tried to stop the timing, Sassano and Baruh helped the hedge funds try to conceal their activities by creating new accounts with CIBC and even opening up accounts at competitive brokerages, including
The SEC is also charging former CIBC branch manager R. Scott Abry and his boss, Robert Orkin, who headed the private client services division, for failing to supervise the two brokers. Okin and Abry directly supervised Sassano and Baruh and knew of, and assisted, their deceptive market timing practices.
The case will be heard before an administrative law judge to determine what, if any, remedial sanctions and penalties are appropriate.
Meanwhile, former CIBC executive Marshall Dornfeld has agreed to pay $100,000 to the SEC for also failing to supervise the brokers, although he neither admitted to nor denied the charges.