A federal grand jury in Florida ruled that Toronto-Dominion's TD Bank must pay $67 million for its role in a Fort Lauderdale attorney's Ponzi scheme that defrauded a group of Texas businessmen.
The jury issued the verdict in federal court in Miami Wednesday after about four hours of deliberations, the South Florida Business Journal reported.
The Texas business group, called Coquina Investments, alleged that executives with $201 billion-asset TD Bank had lied to them about the safety of their money. In its ruling, the jury concluded that TD Bank had helped disbarred attorney Scott Rothstein perpetuate the fraud by failing to report large transactions moving in and out of accounts.
TD Bank “is disappointed with the jury’s decision and is considering all of its options,” company spokeswoman Rebecca Acevedo said in an e-mailed statement to the Business Journal. She did not say whether or not whether TD Bank is considering an appeal.
Other groups have also sued TD Bank for its role in Rothstein’s Ponzi $1.2 billion scheme. Rothstein pleaded guilty to wire fraud, conspiracy and racketeering and was sentenced in 2010 to 50 years in prison.
