Toronto-Dominion Sued Over Stanford Investments

September 4, 2009
By Joe Schneider

Toronto-Dominion Bank, Canada's second-biggest bank, was accused in a lawsuit of negligence and knowing assistance for allegedly helping R. Allen Stanford, who is accused of swindling investors of more than $7 billion, the National Post reported.

The lawsuit, filed in Ontario Superior Court Aug. 26 by Bennett Jones LLP, seeks C$17 million ($15.5 million) for five Canadian investors who say Toronto-Dominion's role as a correspondent bank increased the credibility of Stanford's investments, the Post said. The investors claim they lost money in certificates of deposits based on recommendations made by a financial adviser who worked for the Stanford Group of companies, the Post said.

Toronto-Dominion conducted its business in an "appropriate and lawful manner," Susan Webb, a spokeswoman at the bank, told the newspaper.

Stanford, who faces 21 criminal charges, denies all wrongdoing tied to what the government says was a scheme to pay early investors "improbable if not impossible" returns with funds taken from later investors in Antiguan certificates of deposit. He is being held without bail until he can go on trial.

Source.


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