TD Bank, N.A.
On September 23, 2013, the OCC announced a Consent Order for a $37.5 million Civil Money Penalty against TD Bank, N.A. FinCEN announced it had issued a concurrent $37.5 million CMP assessment, and the Securities and Exchange Commission issued a press release to announce a $15 million CMP and C&D against the bank, and its filing of charges against former bank regional vice president Frank A. Spinosa.
TD Bank is a $212 billion national bank with over 1,300 domestic offices in 16 states ranging from New England to Florida. The principal charges against the bank are that it failed to file a series of SARs relating to suspicious activity in connection with a $1.2 billion South Florida-based Ponzi scheme conducted by Scott Rothstein, who was sentenced to 50 years in prison for his involvement. According to the regulators, the bank's monitoring systems flagged activity in Rothstein's accounts on several occasions, but the bank failed to file SARs. In addition, according the SEC, the bank and Spinosa defrauded investors by producing misleading documents and making false statements about Spinosa's accounts and their balances.
In 2011, the Bank conducted a review of the Rothstein transactions. Based on the results of the review it filed five late suspicious activity reports, totaling an estimated $900 million in aggregate suspicious transaction activity occurring between April 2008 and October 2009. FinCEN said that a "lack of adequate training for both the anti-money laundering and business staff contributed to the failure to recognize this suspicious activity."