-
TD Bank has agreed to pay $44 million to settle allegations that it aided a South Florida lawyer's $1.2 billion Ponzi scheme.
June 7 -
Some courts will deem financial institutions liable simply for knowing about the red flags, while others require proof the bank knew about their customers' schemes. This subjective standard is often unfair and difficult to manage.
September 6 -
Gibraltar Private Bank & Trust has dismissed its chief executive as the Coral Gables, Fla. company continues to deal with the fallout from its ties to a lawyer convicted of running a $1.2 billion Ponzi scheme.
May 29 -
TD Bank confirmed that one of its hired lawyers falsified information to a federal judge during a lawsuit tied to a $1.2 billion Florida Ponzi scheme.
April 25
Regulators slapped Toronto-Dominion Bank's main U.S. unit with more than $52 million in fines for violating the Bank Secrecy Act and securities laws in relation to a Ponzi scheme in Florida.
TD Bank in Wilmington, Del., violated the BSA largely by failing to file suspicious activity reports on accounts belonging to a law firm owned by Scott Rothstein, the Office of the Comptroller of the Currency said Monday. Rothstein was convicted in 2010 of running a $1.2 billion Ponzi scheme.
"The failures to file SARs were significant and egregious for a number of reasons, including the number of alerts generated by these accounts and the volume and velocity of funds that flowed through them," said the OCC in a press release.
A spokeswoman for TD Bank said it is "pleased to resolve these regulatory concerns and to put the Rothstein matter behind us. TD works very closely with our regulators to ensure that it complies with all applicable laws and regulations."
The OCC, in conjunction with the Financial Crimes Enforcement Network,
Separately, the Securities and Exchange Commission
TD Bank eventually gave more than $600 million in restitution to investors affected by the scheme.
The $37.5 million civil money penalty, which will be paid to the Treasury Department, reflects other factors such as the" scope and duration" of violations and financial harm to the bank, the OCC said.
