Rothstein Trustee Sues TD Bank Over Ponzi Losses

Law360, New York (July 26, 2011, 5:10 PM EDT) -- The Chapter 11 trustee overseeing Rothstein Rosenfeldt Adler PA's liquidation hit TD Bank NA with an adversary suit in Florida bankruptcy court Monday, accusing it of helping Scott Rothstein carry out his $1.2 billion Ponzi scheme at the law firm.

Trustee Herbert Stettin filed the suit seeking to avoid and recover allegedly fraudulent transfers made through the bank, which he accuses of turning a blind eye to what were obviously illegal banking practices by Rothstein.

“Ignoring numerous 'red flags,' TD Bank blindly allowed RRA, through Rothstein,...
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