Friday, November 20, 2009

TD Bank Sued in Rothstein Ponzi Scheme

Six investors have filed a suit against TD Bank in connection with the alleged Ponzi scheme perpetrated by South Florida attorney Scott Rothstein. The suit claims that TD Bank was a complicit party in the scheme that appears to have defrauded hundreds of millions from investors.

According to those filing suit, TD Bank failed to authenticate the origins of huge sums of money going in and out of accounts held there. These accounts were opened for the benefit of investors, yet Rothstein withdrew funds, funds used in support of his supposed scheme. The investors filing the suit state that TD Bank made them feel safe about their investment, reassured even. That trust was violated by TD Bank failing to take appropriate steps to ensure that investor money was not being diverted in an illegal fashion, as it now appears to have been.

In an odd corollary, Rothstein has yet to be criminally charged in connection with the scheme. FBI investigators insist that the investigation is ongoing and that once warranted, arrests will be made.

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