# TD, other banks reach $1.35 billion settlements to end Stanford litigation Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-02-28 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Three Banks Pay $1.35B to End Allen Stanford Ponzi Scheme Meta Description: Three banks agree to pay $1.35 billion to former Allen Stanford investors over Ponzi scheme, with payments by TD, HSBC, and Independent Bank. URL: https://financedigest.com/td-other-banks-reach-1-35-billion-settlements-to-end-stanford-litigationhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-02-27t205815z4lynxmpej1q0lqrtroptp4td-results-1736814410197-compressed.jpg) By Jonathan Stempel (Reuters) -Three banks agreed to pay $1.35 billion to resolve litigation by former Allen Stanford investors who accused them of contributing to the imprisoned financier’s massive Ponzi scheme. Canada’s Toronto-Dominion Bank will pay $1.205 billion, HSBC [Holdings Plc will pay $40 million and Independent Bank](https://www.financedigest.com/bank-of-canada-seen-on-hold-even-as-economy-accelerates.html "Bank of Canada seen on hold even as economy accelerates") Group Inc, formerly Bank of Houston, will pay $100 million. Money will go to a court-appointed [receiver who is repaying victims of Stanford’s $7.2 billion](https://www.financedigest.com/petrofac-hitachi-energy-receive-14-billion-agreement-from-tennet.html "Petrofac, Hitachi Energy receive billion agreement from TenneT") fraud, which was uncovered in Feb. 2009, two months after the arrest of Bernard Madoff. Stanford’s Ponzi scheme was at the time considered the largest other than Madoff’s. The settlements require a judge’s approval. They avert a trial that had been scheduled for Monday in Houston federal court, where TD, [HSBC and Independent Bank](https://www.financedigest.com/hsbc-appoints-new-markets-head-amid-wider-investment-bank-reshuffle.html "HSBC appoints new markets head amid wider investment bank reshuffle") were the last remaining defendants. Two other defendants, France’s Societe Generale SA and Mississippi-based Trustmark Corp, settled for a respective $157 [million and $100 million earlier this year](https://www.financedigest.com/first-year-of-n-ireland-protocol-required-1-million-customs-declarations.html "First year of N.Ireland protocol required 1 million customs declarations"). Once considered a billionaire, Stanford, 72, is serving a 110-year [prison sentence](https://www.financedigest.com/belarus-sentences-in-absentia-former-olympian-herasimenia-to-12-years-in-prison-belta.html "Belarus sentences in absentia former Olympian Herasimenia to 12 years in prison – BelTA") after being convicted in 2012 for defrauding about 18,000 investors. Prosecutors said he sold fraudulent high-yielding certificates of deposit through his Antigua-based Stanford International Bank, and used investor money to make risky [investments and fund a lavish lifestyle](https://www.financedigest.com/buyers-shun-city-centres-for-country-villas-when-it-comes-to-lifestyle-investment-in-iberia.html "BUYERS SHUN CITY CENTRES FOR COUNTRY VILLAS WHEN IT COMES TO LIFESTYLE INVESTMENT IN IBERIA"). The receiver, Ralph Janvey, has recovered more than $2.7 [billion for Stanford’s investors](https://www.financedigest.com/uk-investors-add-1-2-billion-to-equity-funds-in-march-calastone.html "UK investors add .2 billion to equity funds in March – Calastone"). Given all the [challenges faced](https://www.financedigest.com/under-saved-and-underprepared-women-face-challenges-saving-for-retirement.html "UNDER-SAVED AND UNDERPREPARED: WOMEN FACE CHALLENGES SAVING FOR RETIREMENT") by the receivership since 2009, this is nothing short of a monumental recovery,” said Kevin Sadler, a Baker Botts partner who represents Janvey and the Official Stanford Investors Committee. TD denied liability and said it settled to [avoid the distraction and risk](https://www.financedigest.com/how-to-avoid-the-risks-of-poor-credit.html "How To Avoid the Risks of Poor Credit") of further litigation. It will [record a C$1.2 billion](https://www.financedigest.com/norways-wealth-fund-loses-record-174-billion-in-first-half-of-2022.html "Norway’s wealth fund loses record 4 billion in first half of 2022") (US$885 million) first-quarter after-tax charge. The payout is “far less than the worst-case [scenario envisioned by some,” and should be “positive for TD’s outlook,”](https://www.financedigest.com/demand-scenario-of-diagnostic-imaging-devices-market-to-reveal-positive-outlook.html "Demand Scenario of Diagnostic Imaging Devices Market to Reveal Positive Outlook") Barclays analyst John Aiken said in a research note. [HSBC and Independent Bank](https://www.financedigest.com/hsbc-acquires-british-arm-of-stricken-silicon-valley-bank.html "HSBC acquires British arm of stricken Silicon Valley Bank") also denied liability. Independent Bank [expects to recognize a $100 million first-quarter expense for its settlement](https://www.financedigest.com/philips-expects-to-reach-recall-settlements-this-year.html "Philips expects to reach recall settlements this year"), a regulatory filing shows. (Reporting by Jonathan Stempel in New York and Niket Nishant in Bengaluru; editing by Arun Koyyur and Jason Neely) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---