Enron Corp. - University of California | Office of The President

partnerships or SPEs, and helped Enron falsify its financial statements and misrepresented its
financial condition while its securities analysts were issuing extremely positive reports on Enron
extolling its business success, the strength of its financial condition and its prospects for strong
revenue and earnings growth. In return for CIBC's participation in the scheme, CIBC or its top
executives were rewarded by being permitted to invest at least $15 million in the lucrative LJM2
partnership.
716. CIBC's relationships with Enron were so extensive that these individuals constantly
interacted with top executives of Enron, i.e., Lay, Skilling, Causey, McMahon or Fastow, on almost
a daily basis throughout the Class Period, discussing Enron's business, financial condition, financial
plans, financing needs, its partnerships and SPEs and Enron's future prospects. CIBC actively
engaged and participated in the fraudulent scheme and furthered Enron's fraudulent course of
conduct and business in several ways. It participated in loans of over $3 billion to Enron during the
Class Period. It helped Enron (or entities Enron controlled) raise over $3 billion from the investing
public via the sale of securities during the Class Period. It helped Enron structure and finance certain
of the illicit SPEs and partnerships Enron controlled which were a primary vehicle utilized by Enron
to falsify its reported financial results and engaged in manipulative devices with Enron that helped
Enron falsify its reported earnings at least in the 4thQ 00 and 1stQ 01.
717. In interacting with Enron, CIBC functioned as a consolidated and unified entity.
There was no so-called "Chinese Wall" to seal off CIBC securities analysts from information which
the commercial and investment banking parts of CIBC obtained in the course of rendering their
commercial and investment banking services to Enron. Alternatively, even if some restrictions were
placed on the information made available to CIBC's securities analysts, that unilateral and self-
serving action is insufficient to prevent the imputation of all knowledge (and scienter) possessed by
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