TD Bank Settles Ponzi Scheme Litigation for $1.35B 

According to news sources, TD Bank and two other banks have agreed to pay a combined $1.35 billion to settle a lawsuit accusing them of aiding disgraced financier Allen Stanford’s $7 billion Ponzi scheme. TD Bank, or Toronto-Dominion Bank, agreed to pay $1.2 billion. HSBC Holdings is set to pay $40 million and Independent Bank – formerly Bank of Houston – $100 million. The settlements will need to be approved by a judge.  

Former investors accused the banks of ignoring red flags and contributing to Stanford’s Ponzi scheme, one of the biggest in U.S. history. The three banks have denied wrongdoing. Stanford and colleagues forged financial statements and lied to regulators about their financial condition to help bankroll Stanford’s lavish lifestyle. Thousands of investors, including small business owners and retirees, lost their life savings.

Stanford was arrested in 2009 and in 2012 was sentenced to 110 years in prison. TD Bank, Independent Bank and HSBC denied any liability or wrongdoing.

“TD provided primarily correspondent banking services to Stanford International Bank Limited and maintains that it acted properly at all times,” the Canadian bank said in a news release Monday. “TD elected to settle the matter to avoid the distraction and uncertainty of continuing a long legal proceeding.”

If the settlements are approved, the receiver responsible for recovering assets for Stanford investors is set to collect more than $2.7 billion.

“This is nothing short of a monumental recovery,” said Kevin Sadler, a partner at law firm Baker Botts and lead counsel for receiver Ralph Janvey and the Official Stanford Investors Committee.  “We look forward to obtaining prompt approval of the settlements and distributing these much-needed funds to the Stanford victims.”

And there you have it. Another big dispute, another big settlement. Disputes like this are EVERYWHERE. And when those things negatively impact YOU and/or YOUR business including bankruptcies, landlord/tenant matters including unlawful detainers, contract issues, nuisance ADA claims and even collections, call in your good guy business litigator, Dean Sperling to resolve YOUR matter with YOUR best interests in mind! 

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