Not only did TD Bank aid Scott Rothstein’s Ponzi scheme, but it also tried to cover up its involvement, according to a new lawsuit filed by some of Rothstein’s victims.
The lawsuit was filed in Broward County Circuit Court on behalf of 17 companies, 16 individuals and two trust funds represented by Fort Lauderdale attorney William Scherer. The plaintiffs invested $72 million in Rothstein’s scam.
Snyder invested on Oct. 23, 2009, the week before Rothstein’s alleged Ponzi scheme came to light. He is founder and president of Tech-Optics Inc., which recycles ink and toner cartridges.
According to the lawsuit: “Faced with catastrophic liability exposure, TD Bank implemented a strategy of blatant concealment and cover-up, which it continues to pursue. TD Bank has buried and altered critical documents evidencing its knowing and willful participation in the scheme and awareness of wrongdoing, has given false and misleading testimony… and has perpetrated a fraud on the court…”
TD Bank spokeswoman Rebecca Acevedo wrote in an email that the bank would continue to defend itself vigorously in Rothstein-related litigation.
Scherer already engineered a $170 million settlement with TD Bank in a similar case filed by the so-called Razorback plaintiffs, including Fort Lauderdale venture capitalist Doug Von Allmen.
A jury also awarded $67 million to a Texas investment group in January, in a federal lawsuit where TD Bank was sanctioned for violations of evidence production protocols.
“Not only did TD Bank cover this up, but they put forward a case that was inconsistent with the documents produced,” Scherer said in an interview.
Scherer said he will be filing another case against TD Bank soon.
In the Beverly case, Scherer again seeks punitive damages against the bank, which can be triple the amount of the financial losses. That would total $216 million.
In January, the bank (NYSE: TD) announced that it had set aside $255 million for a litigation reserve