Regulators slapped Toronto-Dominion Bank's main U.S. unit with more than $52 million in fines for violating the Bank Secrecy Act and securities laws in relation to a Ponzi scheme in Florida.
TD Bank in Wilmington, Del., violated the BSA largely by failing to file suspicious activity reports on accounts belonging to a law firm owned by Scott Rothstein, the Office of the Comptroller of the Currency said Monday. Rothstein was convicted in 2010 of running a $1.2 billion Ponzi scheme.
"The failures to file SARs were significant and egregious for a number of reasons, including the number of alerts generated by these accounts and the volume and velocity of funds that flowed through them," said the OCC in a press release.
A spokeswoman for TD Bank said it is "pleased to resolve these regulatory concerns and to put the Rothstein matter behind us. TD works very closely with our regulators to ensure that it complies with all applicable laws and regulations."
The OCC, in conjunction with the Financial Crimes Enforcement Network, issued a $37.5 million civil money penalty against the $178 billion-asset bank for the reporting lapses, which occurred from April 2008 to September 2009.
Separately, the Securities and Exchange Commission issued a cease-and-desist order and fined the bank an additional $15 million for violating securities law.
TD Bank eventually gave more than $600 million in restitution to investors affected by the scheme.
The $37.5 million civil money penalty, which will be paid to the Treasury Department, reflects other factors such as the" scope and duration" of violations and financial harm to the bank, the OCC said.