TD Bank to Pay $1.2 Billion to End Suit Tied to Ponzi Scheme (3)

Toronto-Dominion Bank said Monday it agreed to pay more than $1.2 billion to settle a lawsuit by investors claiming it aided R. Allen Stanford’s $7 billion Ponzi scheme more than a decade ago.

Settlements also were reached with HSBC Holdings Plc, which will pay another $40 million, and Independent Bank Group Inc., formerly known as Bank of Houston, which will pay $100 million, according to Ralph Janvey, the court-appointed receiver for Stanford International Bank. TD is shouldering the largest share because it played an out-sized role in Stanford’s wire transactions, according to the receiver.

R. Allen Stanford arrives at federal court in Houston on March 1, 2012.

Photographer: Aaron M. Sprecher/Bloomberg

The ...