TD Bank to pay $52.5 million settlement over Ponzi scheme

{mosads}According to the regulators, TD Bank and a former regional vice president produced a number of misleading documents and lied about accounts that Rothstein had at the bank in 2008 and 2009 to help perpetuate his scheme to get investors to pay a one-time lump sum in exchange for a nonexistent larger long-term legal payout. Other employees at the Canada-based bank failed to recognize and report suspicious activity associated with the Ponzi scheme.

Rothstein pleaded guilty to federal charges in 2010, and is currently serving a 50-year prison sentence.

“In the face of repeated alerts on Mr. Rothstein’s accounts by the Bank’s anti-money laundering surveillance software over an 18 month period, the Bank did not do enough to prevent the pain and financial suffering of innocent investors,” FinCEN Director Jennifer Shasky Calvery said in a statement on Monday.

The penalty is the first assessed by FINCen’s new enforcement division, which was created in a June reorganization at the bureau.

In settling the charges, TD Bank did not admit to the accusations.

“TD Bank is pleased to resolve these regulatory concerns and to put the Rothstein matter behind us,” spokeswoman Rebecca Acevedo told The Hill in a statement. “TD works very closely with our regulators to ensure that it complies with all applicable laws and regulations.”