- TD Bank (TSX:TD) has agreed to pay more than US$20 million to end investigations into Jeyakumar Nadarajah, one of its former traders, and his alleged tens of billions in fraudulent orders to manipulate the U.S. treasury market
- The payment, part of a three-year deferred prosecution agreement, includes more than US$9 million in criminal penalties to the U.S. Department of Justice and US$12.5 million to end civil investigations by the Securities and Exchange Commission and the Financial Industry Regulatory Authority
- TD Bank is the sixth-largest bank in North America with C$1.97 trillion in assets as of July 31, 2024
- TD Bank stock has added 5.62 per cent year-over-year and 15.08 per cent since 2019
TD Bank (TSX:TD) has agreed to pay more than US$20 million to end investigations into Jeyakumar Nadarajah, one of its former traders, and his alleged tens of billions in fraudulent orders to manipulate the U.S. treasury market.
The payment, part of a three-year deferred prosecution agreement, includes more than US$9 million in criminal penalties to the U.S. Department of Justice and US$12.5 million to end civil investigations by the Securities and Exchange Commission and the Financial Industry Regulatory Authority, plus an additional US$4.7 million in victim compensation and US$1.4 million in forfeitures. The agreement also requires TD to enhance its compliance regime without violating other U.S. laws. Should the bank comply with these terms, the case will be dropped by the end of the three-year period.
While TD has cleared its name from the ordeal, Nadarajah has not, having been charged in November with 16 counts of fraud and securities manipulation based on treasury orders between 2018 and 2019. He has pleaded not guilty and will have his day in court in February.
The resolution of the treasury spoofing case is a respite in TD’s recently tumultuous run through the news cycle, which includes alleged money laundering violations, the filing of fraudulent consumer reports and the retirement of chief executive officer Bharat Masrani. According to The Wall Street Journal, TD may make a guilty plea in the money laundering probe within the next two weeks.
About TD Bank
TD Bank is the sixth-largest bank in North America with C$1.97 trillion in assets as of July 31, 2024. It serves more than 27.5 million customers across Canadian personal and commercial banking, U.S. retail banking, wealth management and insurance, and wholesale banking.
TD Bank stock (TSX:TD) is down by 0.69 per cent, trading at C$84.93 per share as of 10:01 am ET. The stock has added 5.62 per cent year-over-year and 15.08 per cent since 2019.
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(Top photo of a TD Bank office in Toronto’s financial district: Adobe Stock)