The Securities and Exchange Commission (SEC) has charged TD Bank and a former executive with violating securities laws in connection with a massive South Florida-based Ponzi scheme conducted by Scott Rothstein, who is now serving a 50-year prison sentence. The SEC alleges that TD Bank and its then-regional vice president Frank A. Spinosa falsely represented to several investors that TD Bank had restricted the movement of funds in Rothstein's accounts when, in fact, Rothstein could transfer investor money however he desired. Mr Spinosa also orally assured investors that certain accounts held balances totalling millions of dollars, but each account actually held zero to $100.

TD Bank agreed to settle the SEC’s charges in an administrative proceeding and pay $15 million.