Greed Drove CIBC To Back Failed $45M Oil Well, Court Told

Law360, Houston (April 22, 2013, 10:32 PM EDT) -- Representatives of a trustee for a bankrupt oil and gas developer told a Texas federal judge Monday that company leaders and a unit of CIBC World Markets Corp. were motivated by greed when they conspired to invest $45 million in a well that was destined to fail.

Counsel for Seven Seas Petroleum Inc. trustee Ben Floyd told U.S. District Judge Nancy Atlas that investment bankers with CWM Inc. “betray[ed] fundamental principles of fiduciary duty” by rubber-stamping a fairness opinion needed to secure an investment in the...
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