Paul A. Flynn, former managing director of equity investments at Canadian Imperial Holdings Inc., was arrested today and accused of stealing more than $1 million from mutual funds by participating in a late trading scheme, New York Attorney General Eliot Spitzer announced. Mr. Flynn, who is alleged to have arranged financing for the illegal scheme, also was charged with felony violations of New York's securities laws, according to a news release posted on the state attorney general's website. Mr. Flynn allegedly used his position at Canadian Imperial to arrange financing for illegal late trading and deceptive market timing of mutual funds by two hedge funds, Samaritan Asset Management and Canary Capital Partners. In a related action, the SEC announced today it filed civil charges against Mr. Flynn.
A call to Canadian Imperial for comment was not returned by press time.