Stanford’s Ponzi scheme was at the time considered the largest other than Madoff’s.
They avert a trial that had been scheduled for Monday in Houston federal court, where TD, HSBC and Independent Bank were the last remaining defendants.
Two other defendants, France’s Societe Generale and Mississippi-based Trustmark, settled for a respective $157 million and $100 million earlier this year.Once considered a billionaire, Stanford, 72, is serving a 110-year prison sentence after being convicted in 2012 for defrauding about 18,000 investors.
Prosecutors said he sold fraudulent high-yielding certificates of deposit through his Antigua-based Stanford International Bank, and used investor money to make risky investments and fund a lavish lifestyle.“Given all the challenges faced by the receivership since 2009, this is nothing short of a monumental recovery,” said Kevin Sadler, a Baker Botts partner who represents Janvey and the Official Stanford Investors Committee.
The payout is “far less than the worst-case scenario envisioned by some,” and should be “positive for TD’s outlook,” Barclays analyst John Aiken said in a research note. HSBC and Independent Bank also denied liability. Independent Bank expects to recognize a $100 million first-quarter expense for its settlement, a regulatory filing shows.
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