TD Bank agrees to pay $1.2 billion to close Stanford case
The bank denies any responsibility for the scheme at the Ponzi scheme operated by the Stanford Financial Group.
TD Bank agrees to pay US$1.2 billion to settle a lawsuit related to a Ponzi scheme.
TD Bank Group announced on Monday that it will pay US$1.205 billion (CA$1.6 billion) to end a lawsuit related to a Ponzi scheme operated for years by the Stanford Financial Group. Investors Committeeand other plaintiffs in this litigation – still requires court approval.
If the agreement is approved, these parties agree to waive all claims related to this fraud with respect to TD Bank.
The court-appointed receiver is tasked with recovering funds lost to Texas financier Allen Stanford, who is currently serving a 110-year prison sentence.
The businessman, now 72, had fraudulently sold $8 billion in super high yield certificates of deposit. Any money that can be recovered by the receiver will be used to compensate affected customers.
TD, which provided banking services to the financial institution Stanford International Bank, has denied any liability or wrongdoing and maintained that she acted correctly at all times.
“TD has decided to settle the matter to avoid the distraction and uncertainty of continuing lengthy legal proceedings. ”
— TD Bank Press Release
The Bank recalls that it has already undergone a trial in Canada regarding the same Stanford case, noting that the trial court l had blanched. The Ontario Court of Appeal upheld that decision, and a motion for leave to appeal is currently pending before the Supreme Court of Canada, she said.
< p class="e-p">TD is expected to release its first quarter results on Thursday. As a result of the settlement, the Bank says it will record a provision for this quarter of approximately $1.2 billion after tax, an amount that will be reflected under the corporate category.