TD Bank agrees to pay $1.2 billion settlement over alleged role in infamous $7.2 billion Texas Ponzi scheme


TD Bank Group introduced Monday that it had agreed to a $1.21 billion settlement relating to its alleged role in a $7.2 billion Ponzi scheme involving disgraced Texas financier Allen Stanford.

Beneath the phrases of the settlement, TD’s settlement will launch it from all authorized claims involving the scheme, which noticed Stanford skim clients’ investments in supposedly high-yielding certificates of deposit held in an offshore account in Antigua¬†to fund a lavish life-style.

Stanford’s scheme collapsed in 2009 throughout a federal investigation; in 2012, he was sentenced to 110 years in jail. TD was dealing with litigation accusing it of negligence whereas performing as a banking middleman for Stanford.

Primarily based in Toronto, TD continues to deny any legal responsibility or wrongdoing with respect the scheme, and as a part of the settlement made no act of contrition.

“TD supplied primarily correspondent banking providers to Stanford Worldwide Bank Restricted and maintains that it acted correctly always,” it mentioned in an announcement. “TD elected to settle the matter to keep away from the distraction and uncertainty of constant an extended authorized continuing.”

TD additionally famous it had received a trial in Canada associated to its alleged role in the Stanford fraud.

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