A jury has awarded Texas-based Coquina Investments $67 million against TD bank for its involvement in Scott Rothstein's $1.2 Billion Ponzi scheme. Scott Rothstein, the once-high flying South Florida attorney, pleaded guilty in 2010 for defrauding investors out of $1.2 Billion from 2005 to 2009. Mr. Rothstein told investors that they were purchasing interests in settlements involving sexual and employment discrimination, which was later discovered to be a sham. Coquina alleged that TD Bank officers assisted Mr. Rothstein by meeting with victims and telling them that the business was legitimate and that the scam could not have worked without TD Bank's assistance.
A Ponzi scheme is an unsustainable fraud pyramid that inevitably ends in ruin. Schemers use money raised from latter investors or investors higher up the pyramid to pay an earlier investor's returns. Ponzi schemes invariably fall apart when markets deteriorate or when the schemer is unable to raise more cash. In Mr. Rothstein's case, earlier investors were issued returns with money accumulated from new investors. TD bank provided Mr. Rothstein with documents to disguise the scheme and bring in new investors, keep investors involved, and get investors to reinvest.
An investor can claim damages against an entity charged with aiding and abetting a crime. An agent of the charged entity does not have to be present when the crime was being committed, but he or she knows of the crime before or after the fact, and may assist in the crime's completion through advice, actions, or financial support. TD Bank may be liable to investors for aiding and abetting due to its involvement in the Scott Rothstein Ponzi scheme.
Have you suffered investment losses due to TD Bank's involvement in Scott Rothstein's Ponzi scheme? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.