Scott Rothstein Alleges TD Bank's "Critical" Role in Ponzi Scheme; Explains Morocco Trip

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Scott Rothstein
Scott Rothstein claimed during his deposition that TD Bank played a "critical" role in furthering his billion-dollar Ponzi scheme, according to transcripts.

When asked just how important the bank was to furthering his scheme, Rothstein said that on a scale of one to ten, "They were a ten."

Rothstein claimed investors often wanted to do business with a larger bank, but said he simply couldn't because of the help he was getting from TD Bank -- specifically the bank's former vice president, Frank Spinosa.

From the December 13 transcript:

Q    In terms of the components that you view as critical, how does TD rate?
A    Do you want it on a scale of one to ten --
Q    Yeah.
A    -- ten being the most important?
Q    Yes.
A    They were a ten.
Q    And why do you say that?
A    Because they were assisting me in putting fake balance statements into the hands of my investors. They were critical in providing real letters to go on top of the fake balance statements.  They were critical in the fact that they had TD Bank employees actually handing me those phony statements in front of the investors; and Frank Spinosa was a fantastic advocate for our firm's supposed financial condition, as well as on several occasions actually verifying phony balances.

Rothstein went on to explain some of the ins and outs of the scheme, and alleged how TD Bank employees -- especially Spinosa -- were helping him out.

His explanation as to why Spinosa would want to assist him was pretty simple.

"Other than me asking him to, the two main reasons: One, he was directly paid a sum of money somewhere between $50- and $75,000 by me in cash," Rothstein said. "Two, he was one of the people that was, again, for lack of a better term, living the rock star lifestyle provided by our firm in exchange for his continued cooperation in our conspiracy."

TD Bank has continuously denied Rothstein's allegations against them.

Rothstein was also asked that morning to explain his escape to Morocco during the downfall of his scheme, and his reasoning was fairly simple -- it has no extradition treaty with the United States.

His plan was to open a series of nightclubs in Morocco using the $9 million he claimed TD Bank helped him wire to an account there.


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EelFace
EelFace

anyone that thinks that Rothstein wasn't carrying cash when he left this country is foolish. to think that he accomplished a billion dollar scheme without help from his partners and bankers is equally ludicrous. maybe this could be the impetous to go after all these bankers that knowingly contributed to the housing fiasco. vigorously prosecute the bankers involved in Rothstein's and other scams and the trail will lead to the guys that bet against the very investments they were making.

KennyPowersII
KennyPowersII

Toronto Dominion Bank? At the time Morocco was the site of the Grand Opening of the newest Uncle Sol Kerzner resort. Gotta be a connection.

Jim
Jim

Anyone who believes what Rothstein is saying are as gullible as the "investors" who believed his ridiculous scheme was for real.   Why would anyone believe a word he is saying?   Where is there any evidence that what he is now saying is true??   He's just found a whole new set of suckers.

Unzipped
Unzipped

What if he is telling the truth, finally?

Vinojon
Vinojon

Can't wait for the next installment of deposition transcripts to arrive. Better than any movie script.

Disgusted
Disgusted

Happy Hannukka, Scotty Slimeball. You've reinforced my prior opinion of lawyers and jews.

Obermann
Obermann

When are the Rothstein partner arrests, plus Szfranski, Spinosa, and especially Levin going to happen?  It can't be soon enough.

Jessica
Jessica

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Jessica
Jessica

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