TD settles suit over allegedly overlooking Ponzi scheme

By Staff | July 17, 2015 | Last updated on July 17, 2015
1 min read

TD Bank has reached a US$20-million settlement with members of a class action suit who allege the bank failed to detect a Ponzi scheme, reports Reuters.

The fraud allegedly bilked more than 1,000 European investors of more than US$233 million, the investors’ lawyers says.

Read: Unwitting Madoff conspirator spared jail time

The lawsuit alleges that TD didn’t properly monitor trust accounts and should have investigated suspicious account activity, says Reuters. TD’s lawyers argued that the investors didn’t have proof that the bank actually knew about the fraud.

Read more here.

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