Three Years after Rothstein’s Guilty Plea, TD Bank Still Faces Compliance Scrutiny: Sources

By Brian Monroe and Colby Adams

Federal financial regulators are questioning TD Bank about potential Bank Secrecy Act compliance lapses identified in the wake of the conviction of Florida-based Ponzi schemer Scott Rothstein, say sources. The regulatory attention, which has coincided with Rothstein-related subpoenas from the U.S. Justice Department, follows an October 2010 cease-and-desist order against Coral Gables, FL-based Gibraltar Private Bank & Trust for anti-money laundering (AML) violations. In December 2011 testimony, Rothstein characterized executives at both banks as willing accomplices to his $1.2 billion scheme. Rothstein's 2010 conviction and his 2011 deposition prompted the U.S. Treasury Department's Office of the Comptroller of the Currency...