Declaration Of Helen J. Hodges In Support Of Lead Counsel's ...

146. In addition to JPMorgan’s internal documents, Lead Counsel also successfully
secured documents, evidence, and testimony from JPMorgan and nearly a dozen sureties involved in
JPMorgan Chase Bank v. Liberty Mutual, No. 01-11523 (S.D.N.Y.). The JPMorgan Chase Bank
litigation concerned the bank’s attempt to recover monies from its underwriters on certain failed
Enron-related transactions; the sureties initially refused to pay the claims, arguing the underlying
transactions were fraudulent. Just days after that case was settled, and starting on January 3, 2003,
Lead Counsel served multiple rounds of document production requests and subpoenas to preserve
and obtain the documents, depositions and sworn testimony from the underlying litigation. Lead
Counsel moved swiftly to obtain the evidence because the documents were scheduled for disposal
due to the litigation’s termination.
147. Lead Counsel’s efforts were successful. Critical documents, depositions and sworn
testimony from JPMorgan Chase Bank v. Liberty Mutual were preserved and placed in the document
depository.
9. CIBC Is Forced to Deem Facts as Admitted
148. On December 22, 2003, bank defendant CIBC entered agreements with the DOJ, the
Federal Reserve Bank of New York, the Superintendent of Financial Institutions, Canada, and the
SEC. According to the agreement, in the DOJ’s view, “CIBC and its personnel have violated federal
criminal law” in the Enron fraud. As part of the agreement, “CIBC accepts responsibility for the
conduct of its employees giving rise to any violation in connection with” Enron-related transactions
involving CIBC, and CIBC further agreed to “not contradict the factual statements” set forth in a
factual statement detailing CIBC’s fraud. Pursuant to the agreement, CIBC agreed to cease engaging
in certain structured finance transactions with U.S. public companies, adopt internal governance and
compliance measures, and pay a fine of $80 million, among other things.
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