PRINT THIS PAGE Former employees sue CIBC over private equity fund25/08/2004. Source: AltAssets. 
 Two former executives from the Canadian Imperial Bank of Commerce are suing the firm over investments in its $400m private equity fund. James Forsythe and Alan Tesche are alleging that the bank routinely put its own money interests ahead of many of its top employees who invested in the fund, which has lost around $50m in value since its launch four years ago.
The CIBC Employee Private Equity Fund I was available to employees earning in excess of $200,000 a year and with a net worth of more than $1m. The minimum investment was $100,000 and the maximum $1m. For each dollar that an employee committed, the bank would lend $3, with $2 of that credit in the form of a loan, according to the Globe and Mail.
Forsythe and Tesche allege that the fund partnership and ESC Management, the fund's general partner, transferred 'underperforming and overvalued investments into the partnership in order to eliminate these investments from CIBC's balance sheet.' The suit also alleges that the fund made 'high-risk investments, contrary to requirements set forth in the offering documents.'
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