Whistleblower Law Blog
Jury Orders TD Bank to Pay $67 Million to Victims of Ponzi Scheme
On January 18, 2012, a jury for the U.S. District Court for the Southern District of Florida found TD Bank liable for engaging in fraudulent activity and ordered the company to pay $67 million in damages to the victims of the Ponzi scheme. Texas firm Coquina Investments filed a lawsuit against TD Bank in May 2010, accusing the bank of aiding Scott Rothstein in his $1.2 billion Ponzi scheme.
The suit alleges that TD Bank was aware of Rothstein’s illegal business transactions but still allowed him to conduct his affairs with the bank. Questionable activity, such as sizable funds passing through Rothstein’s account, occurred without any objections from the bank. In a deposition, Rothstein testified that he wouldn’t have been able to conduct his scheme without the help of TD bank management, such as former bank vice president Frank Spinosa, who Rothstein claims to have paid $50,000 to falsify account balances.
TD Bank denies any wrongdoing and maintains, that it was Scott Rothstein “who defrauded investors.”
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