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TD Bank settles with investors over role in Ponzi scheme

A disbarred lawyer allegedly used accounts at the bank to steal $1.2 billion

Just days before the case was set to go to trial, TD Bank, the U.S. division of Toronto-Dominion Bank in Canada, reached a settlement with a group of investors who alleged that the bank assisted a South Florida lawyer in the execution of a $1.2 billion Ponzi scheme.

Though the bank’s lawyers are trying to keep the terms of the deal private, the Miami Herald has reported that TD Bank will play $170 million, almost the full $180 million that the investors, known as Razorback Group, claim they lost when they bought fake shares in legal settlements from Scott Rothstein, a disbarred lawyer. Rothstein, who allegedly used TD Bank accounts to carry out his Ponzi scheme, is currently serving 50 years in jail for investment fraud.

In December, members of an organized crime ring were arraigned for using a check depositing loophole to steal $450,000 from TD Bank—which now, in light of their alleged role in this Ponzi scheme, seems a little bit like poetic justice.

Read more at Thomson Reuters.

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