Bank Owes Financial Fraud Victims after Rothstein Ponzi Scheme
TD Bank, based in Toronto, must pay out $67 million to harmed investors related to a Ponzi scheme that has been called one of the largest Ponzi schemes in South Florida history. The decision came from a federal jury on January 18th as the result of a lawsuit by Coquina Investments, which is based in Texas.
Scott Rothstein, who we have reported on previously, is already serving a sentence for the alleged Ponzi scheme, and at least seven additional people have been charged. Rothstein has reportedly been cooperative with officials as the additional allegations have come down.
The bank's involvement in the South Florida Ponzi scheme is said to have been integral to the life of the scam. Apparently, Rothstein and his alleged co-conspirators used a TD Bank account to perpetuate the fraud, and some of the accused are said to have been pretending to be employees of TD Bank. Additionally, at least one person in the scheme allegedly set up a fake website that appeared to be a legitimate TD Bank site giving account balances.
Prosecutors have alleged that the bank was aware of the financial scam, actively assisted in it, and that Rothstein had paid a sizable sum to the bank’s president to turn a blind eye to the fraudulent activities.
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