1. Enablers beware
International banks, including HSBC, that dealt with Ponzi scheme crook Allen Stanford are closely watching the civil trial that started in Ontario last week in which Canada’s TD Bank is being sued for $4.5bn in damages. Liquidators, who have recovered only 10% of the estimated $7bn that Stanford madoff with (geddit) from 21,000 victims using an offshore bank and other companies, are going after his enablers, reports The Economist. TD provided Stanford’s offshore bank with a correspondent account that linked it to international markets, through which $10bn flowed. The liquidators argue that TD did insufficient due diligence despite numerous red flags. Stanford, convicted in the US in 2012, is serving a 110-year sentence...
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