TD Bank settles with fleeced investors on eve of trial

Toronto Dominion Bank agreed to a payout Tuesday to settle with investors fleeced in a Ponzi scheme run by a high-rolling Florida lawyer. The amount remains confidential, lawyers told a Fort Lauderdale state court, but the Miami Herald reported the sum as $170 million.

The Toronto Star
February 28, 2012

TD Bank settles with fleeced investors on eve of trial
John Goddard

Toronto Dominion Bank agreed to a payout Tuesday to settle with investors fleeced in a Ponzi scheme run by a high-rolling Florida lawyer.

The amount remains confidential, lawyers told a Fort Lauderdale state court, but the Miami Herald reported the sum as $170 million.

The final draft settlement with the so-called Razerback Group of 55 investors follows the conviction of Fort Lauderdale lawyer Scott Rothstein, who is serving 50 years in prison for running a $1.2 billion investment fraud with TD accounts.

“We can confirm that a settlement has been reached in the Razorback case,” bank spokeswoman Maria Leung said in a two-line statement from Toronto on which she declined to elaborate. “We feel it is in the bank’s best interest to put this matter behind us.”

The 55 investors were to go to trial against the bank next week claiming $186 million.

Under the settlement, the Miami Herald reported, TD Bank is to pay the investors $100 million for their losses and $20 million in interest on the original claim amount. The other $50 million goes to the Florida law firm Conrad Scherer.

A trial is still scheduled to go ahead next week in a related lawsuit from the Razerback Group against Gibraltar Private Bank & Trust.

Gibraltar’s lawyer asked the judge Tuesday to make the draft TD Bank settlement terms public. The judge is to rule on the request Friday.

Two years ago, Rothstein pleaded guilty to selling interests in fictitious settlements of sexual-harassment and whistle-blower lawsuits to investors in Florida and as far-flung as New York.

In December, Rothstein said in a deposition that he could not have operated without TD Bank’s assistance.

With files from Bloomberg.

http://www.thestar.com/business/article/1138256--td-bank-settles-with-fleeced-investors-on-eve-of-trial


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