Ponzi Suits Show Banks Open to Liability - TheStreet: "class action lawsuit has been filed against TD Bank (TD_) and Gibraltar Private Bank of Coral Gables, Fla., by William Scherer, for violating its own procedures and 'blindly authorizing' numerous suspicious money transfers and disregarding apparent fraud warning signs' involving the accounts of Scott Rothstein, the Fort Lauderdale lawyer who pleaded guilty to a $1.2 billion Ponzi scheme in January. Rothstein was sent to cool off in prison for 50 years in June even though he agreed to cooperate with prosecutors. Scherer's firm, Conrad & Scherer, is suing on behalf of 37 former customers of Rothstein. In April Gibraltar said in a statement that there was no reason for the bank to be added to Scherer's lawsuit, since none of Rothstein's investors were clients of Gibraltar and that 'the bank upheld all of its regulatory duties.'"

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