U.S. financial regulators Monday fined Canada-based TD Bank $52 million for willfully failing to report suspicious transactions tied to one of the largest-ever known Ponzi schemes. In concurrent enforcement actions, the U.S. Treasury Department's Office of the Comptroller of the Currency (OCC) and the Financial Crimes Enforcement Network (FinCEN) penalized the bank $37.5 million for not filing suspicious activity reports (SARs) on then-Miami attorney Scott Rothstein's account, despite repeated alerts from the institution's transaction monitoring system. The Securities and Exchange Commission (SEC) fined the bank an additional $15 million for allowing former Regional Vice President Frank Spinosa to help Rothstein...
A recent bevy of civil complaints brought against financial institutions by victims of Ponzi schemes raises questions over the extent to which financial institutions can detect and prevent large scale fraud perpetrated by their own customers, say sources.
A Florida regional bank on Thursday agreed to pay the U.S. Treasury Department $6.5 million to resolve allegations that long-term deficiencies in its compliance program helped facilitate a $1.2 billion Ponzi scheme.
An expected U.S. Treasury Department regulation aimed at improving corporate transparency may do more than task banks with additional recordkeeping. It could also expose financial institutions to greater civil liability when compliance goes wrong.
Plaintiffs suing Toronto Dominion Bank over its ties to a convicted Ponzi schemer will likely reject a proposed comprehensive settlement that would grant the institution immunity from future litigation, say attorneys.
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.