A Florida grand jury indicted a former TD Bank executive on Oct. 10 for allegedly taking part in a $1.2 billion Ponzi scheme run by a convicted associate. He is charged with conspiracy and wire fraud.
According to the federal indictment, the 53-year-old executive used the prestigious reputation of TD Bank to dupe investors into believing their funds were in locked trust accounts with the bank. In reality, the accounts were unlocked and being raided by an attorney who is now serving a 50-year prison sentence for operating the Ponzi scheme. The executive is also charged with lying to investors over the phone about the amount of money in their accounts, telling them their balances were much higher than they actually were.