Molony used his managerial position inside the corporation to his advantage and stole millions of dollars from the Canadian Imperial Bank of Commerce. He did this by taking advantage of his position. Gambling was a serious addiction for him, and it drove all of his behavior.
Molony might have been sentenced to two and a half years in prison once the scandal was uncovered, and he is now required to give speeches at conferences about the bad repercussions linked with gambling on impulse.
In the Beginning
Molony’s interest in gambling may be traced back to when he was a small boy, when he was 10 years old. He would accompany his father to the racecourse and also serve as an accountant for the group of buddies he had in school. Molony ultimately continued his education by enrolling in the University of Western Ontario, where he earned a bachelor’s degree in journalism after completing his studies there.
Molony intended to become a financial journalist so that he could merge his two interests in journalism and gambling into one career. He sent his resume to the Canadian Imperial Bank of Commerce (CIBC) in hopes of landing that role; however, his performance on the bank’s entrance test was so impressive that he was fast-tracked into their manager-in-training program.
In this role, some of his primary tasks were the management of current accounts and foreign currency, as well as the approval or rejection of applications for loans that were processed via the bank. He visited several of the company’s branches and worked side-by-side with a large number of other managers, both of which provided him with unique perspectives on the shortcomings of the business.
Molony’s yearly pay was a little over $10,000, which fit Molony’s lifestyle just well, since he had no want to wear fancy clothing or eat at rich restaurants, but he did have a need to gamble. Molony’s lifestyle was perfectly matched to his salary because he had no desire to wear fancy clothes or dine at luxurious restaurants. Even though he had a low income, he regularly travelled from his home in Toronto to the casinos in Las Vegas and Atlantic City to spend his weekends. However, it is obvious that he could not afford to do so given the size of his wage.
Molony used the executive position he had at CIBC to his advantage and began stealing money from the company in order to support his gambling habit.
He would submit loan applications using the names of both legitimate businesses and made-up corporations.
After that, Molony would move millions of dollars out of the bank via a subsidiary firm known as California Clearing Corporation. This organization’s one and only mission was to enable customers to deposit significant quantities of money into the several casinos located across Las Vegas.
He enjoyed gambling, but to be very honest, he wasn’t very good at the tables, and to make things even worse, he was a regular high-roller. He continued trying to persuade himself that if he placed bets that were sufficiently large, he would be able to win back the money that he had stolen from the bank before the authorities ever found out.
On April 27th, 1982, he was playing craps at Caesars Atlantic City casino when he lost over one million dollars. This brought an end to the hopes he had held for so long. Molony was placed under custody for embezzlement on the very same day that the CIBC had at long last become aware of his acts. By the time it was ended, Molony had taken more than $10 million from the business.
Caesars acknowledged that they never inquired into Molony’s credit history or inquired as to what he performed for a job. They further admitted that Molony rewarded them with tens of thousands of dollars in hotel rooms as well as private transportation to and from the casino.