Wow, this is a big deal. From South Florida Business Journal:
TD Bank has acknowledged that it made a false statement to a federal judge about evidence in a lawsuit related to the Scott Rothstein Ponzi scheme, according to a notice filed on Tuesday in federal court in Miami.
The bank has also announced that a new law firm will be handling the case, which is on appeal.
TD Bank lost a $67 million jury verdict in January to investors who were bilked by Rothstein. The verdict in Coquina Investments vs. TD Bank is considered to be one of the first ever to hold a bank accountable for aiding and abetting fraud by one of its customers.
Since the verdict, Coquina has filed a previous motion to penalize the bank further for allegedly tampering with another document called a Customer Due Diligence form. The latest controversy over the Standard Investigative Protocol has resulted in U.S. District Judge Marcia Cooke setting a hearing to determine why the bank shouldn’t be held in contempt of court.
In court motions, TD Bank said it had replaced Greenberg Traurig with two new law firms, McGuireWoods and Kasowitz Benson Torres & Friedman. The bank is facing several additional lawsuits related to the Rothstein case, including one by investor Emess Capital. The bank also dropped Greenberg in the Emess case, but Greenberg continues to represent TD Bank in other cases, Acevedo said Wednesday.
TD Bank’s new counsel, including Marcos Daniel Jimenez of Kasowitz Benson in Miami, filed an emergency motion to stay the contempt hearing until the firm can study the case further. In that motion, Kasowitz Benson warned that a conflict of interest may exist among TD Bank employees, the bank and Greenberg Traurig regarding the production of documents in the case.