As regulators around the world froze assets belonging to Texas billionaire Allen Stanford, Toronto-Dominion Bank has emerged as a significant player in Mr. Stanford's far-flung financial empire that is now under investigation by the U.S. Securities and Exchange Commission.
The SEC has alleged that Mr. Stanford's financial group orchestrated an $8-billion (U.S.) fraud. Mr. Stanford had not been seen since the SEC filed civil charges Tuesday in a Texas court. He was located yesterday in Virginia by the FBI, which served him with papers.
Court filings indicated that TD was one of three banks that provided financial services to Stanford International Bank Ltd. (SIB) and show that at one point in 2006, Stanford's entities had more than $160-million in various TD accounts.
"We have been contacted by regulatory authorities and although there are no allegations of wrongdoing on the part of TD, we are, of course, co-operating fully," TD spokeswoman Julia Koene said yesterday.