Toronto-Dominion Bank on Friday agreed to pay $1.2 billion to settle claims stemming from the Canadian bank’s involvement in the Ponzi scheme perpetrated by convicted swindler R. Allen Stanford, resolving nearly all outstanding litigation related to the fraud, WSJ Pro Bankruptcy reported. Michigan-based Independent Bank and London-based HSBC Holdings PLC also reached settlements on Friday, following deals struck last month by Société Générale SA of Paris and Trustmark National Bank of Jackson, Miss. The deals reached this year totaled more than $1.6 billion, pending court approval, according to lawyers representing the court-appointed receiver in the case. The receiver also recouped more than $1.1 billion through previous litigation, bringing the total amount of potential recoveries to more than $2.7 billion, proceeds that will go toward making restitution to victims of the fraud. Stanford Financial Group, now defunct, was a financial-services company that operated until it was seized by U.S. authorities in early 2009. Its former chairman, Mr. Stanford, was convicted in 2012 of running a two-decade investment-fraud scheme amounting to $7 billion, one of the largest frauds in U.S. history. He was sentenced to 110 years in prison.
