TD Bank ignored 21 fraud alerts on Miami Ponzi schemer’s account

TD Bank, one of the largest targets for litigation surrounding Scott Rothstein’s $1.2 billion Ponzi scheme, got hit with some good news and some bad news, the South Florida Business Journal reported, as it tried to escape the lawsuits unscathed.

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On the one hand, a U.S. District Judge in Miami ruled that Texas-based Coquina Investments, which filed a $27 million lawsuit against the bank, cannot pursue Racketeering Influenced and Corrupt Organization charges against TD Bank. The court decided that Coquina could not prove that TD Bank benefited from the scheme.

However, the judge also found that the bank had 21 fraud alerts on Rothstein’s account — all of which went ignored. That doesn’t help the bank in defending against the crux of the suit which argues that TD Bank aided Rothstein’s scheme. [SFBJ]

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