WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) led U.S. Senators John Kennedy (R-LA) and John Cornyn (R-TX) in demanding answers from the U.S. Department of Justice (DOJ) on behalf of the Stanford Ponzi scheme victims. The DOJ has yet to respond to a request to investigate Toronto-Dominion Bank’s involvement nor have they maintained open lines of communication with victims’ groups. The Ponzi scheme stole seven billion dollars from American families, most of which has not been returned.
“[M]embers of Congress reached out to Toronto-Dominion Bank regarding its involvement with the Stanford Ponzi scheme. The undersigned highlighted troubling details relating to the bank’s relationship with Allen Stanford and indicated that such lapses in compliance oversight could facilitate money laundering and other fraudulent activities. The undersigned demanded that Toronto-Dominion Bank engage with Stanford’s victims to seek a swift resolution to the matter,” wrote the senators.
“The Stanford Financial Receiver raised similar concerns and asked the Department of Justice to investigate Toronto-Dominion Bank for its involvement with the Stanford Ponzi scheme. We have been informed that the Stanford Financial Receiver received no acknowledgement regarding its requests. If true, this appears to be a break with the Department’s prior practice to maintain open lines of communication and coordinate with victims’ groups,” continued the senators.
Over the years, Cassidy has been a strong advocate for the Louisianan and American victims of the Ponzi scheme. In 2018, Cassidy introduced legislation to ensure victims could receive compensation. A year later, he met with attorneys representing Société Générale (SocGen), a bank reportedly holding $210 million in stolen assets from the Stanford Ponzi Scheme. And in 2020, Cassidy doubled down with a letter to SocGen regarding its participation in the Stanford Ponzi scheme.
Read the full letter here or below:
Dear Attorney General Garland,
We write to you on behalf of the Louisianans and Texans who were defrauded and have yet to be made whole by Allen Stanford and the Stanford International Bank. In 2019, members of Congress wrote a letter urging that Société Générale provide restitution to the victims of Allen Stanford for its involvement in facilitating the Ponzi scheme. Société Générale held $210 million in frozen assets connected to the Stanford Ponzi scheme, which it refused to release to Stanford’s victims. The undersigned were emphatic that this money belonged to the victims and should be returned to them immediately. There was a follow-up letter a year later expressing our frustration at the lack of progress and the bank’s refusal to engage with the victims of the Ponzi scheme.
Separately, members of Congress reached out to Toronto-Dominion Bank regarding its involvement with the Stanford Ponzi scheme. The undersigned highlighted troubling details relating to the bank’s relationship with Allen Stanford and indicated that such lapses in compliance oversight could facilitate money laundering and other fraudulent activities. The undersigned demanded that Toronto-Dominion Bank engage with Stanford’s victims to seek a swift resolution to the matter.
The Stanford Financial Receiver raised similar concerns and asked the Department of Justice to investigate Toronto-Dominion Bank for its involvement with the Stanford Ponzi scheme. We have been informed that the Stanford Financial Receiver received no acknowledgement regarding its requests. If true, this appears to be a break with the Department’s prior practice to maintain open lines of communication and coordinate with victims’ groups.
Please provide a response as to why the Department did not (1) maintain communications with the Stanford Financial Receiver or (2) seek a restitution penalty as part of the recent settlement with Toronto-Dominion Bank regarding its Bank Secrecy Act and money laundering violations.
We thank you for your attention to these matters and look forward to your response.
###