$37.7M RICO Suit Against Bank Rothstein Used in $1.2B Ponzi Scheme Gets Green Light
A federal judge has given a green light to a lawsuit against a bank utilized by then-attorney Scott Rothstein in the $1.2 billion Ponzi scheme he ran from his South Florida law office.
TD Bank said in a motion to dismiss that its officials knew nothing about the now-convicted Rothstein’s massive fraud. But U.S. District Judge Marcia Cook of Miami held that a group of Texas investors had adequately alleged knowledge and substantial assistance to proceed with their civil Racketeer Influenced and Corrupt Organizations Act and fraud claims, reports the South Florida Business Journal.
Coquina Investments sufficiently alleged that a onetime regional vice president of TD Bank “actively participated in Rothstein’s Ponzi scheme by signing fraudulent or misleading letters purporting to restrict funds in a TD Bank account for the sole benefit of the plaintiff,” the judge wrote in an opinion last week, “when in fact there was no restriction on the funds, and by generating fraudulent documents misrepresenting Coquina’s account balances.”
Rothstein is serving a 50-year prison term.
A spokeswoman for the bank promises an aggressive defense and says it expects not to be found liable.
Earlier coverage:
ABAJournal.com: “Banks Knew About Illegal Rothstein Transfers and Hence are Liable for $160M, Lawyer Argues”
