TD Bank faces Ponzi scheme liquidators seeking $7B in trial

Correspondent banking is the enterprise of offering providers to offshore monetary establishments. The joint liquidators are Grant Thornton within the British Virgin Islands and the Cayman Islands. The trial is scheduled to final three months, a spokesperson for one of many plaintiffs’ legal professionals stated.

Stanford is serving a 110-year jail time period after being convicted in 2012 of operating a $9.2-billion Ponzi scheme.

“Like everybody else, in the course of the time that Stanford Worldwide Financial institution was a buyer of TD, we had no information of, and no purpose to suspect, any fraudulent exercise was happening,” a TD spokesperson stated. “TD shouldn’t be liable for the fraud dedicated by Allen Stanford.”

TD estimated fairly doable losses from authorized and regulatory actions together with the Stanford litigation of between zero and $951 million Cdn as of Oct. 31. Provisions associated to authorized motion shall be taken when a loss turns into possible and an quantity could be reliably estimated, it stated in its 2020 annual report.

The plaintiffs allege that SIB’s “exponential” progress from 2002 to late 2008 made it TD’s largest correspondent banking buyer and a big income, claims the Canadian financial institution has denied.

They’re additionally searching for a full accounting of the income and revenue from TD’s dealings with SIB and a return of these funds to Stanford’s traders.

In November, a Swiss court docket ordered Societe Generale SA to give up $190 million deposited by Stanford, saying it had did not do correct due diligence.