TD Bank Group has agreed to pay more than US$28 million after an investigation into manipulation of the US Treasury market by one of its brokers.
Posted at 6:52 p.m.
The deferred prosecution agreement with the U.S. Department of Justice results in TD admitting that a former employee created a false appearance of supply or demand in the marketplace by placing bids or asks and then cancel before their completion.
The agreement contends that hundreds of so-called fraudulent orders were placed, representing tens of billions of dollars in false bids and asks, with the aim of artificially increasing market prices for these products.
The resolution comes as TD is also expected to soon resolve a wide-ranging investigation into deficiencies in its anti-money laundering program that the bank estimates will cost it more than US$3 billion.
The agreement in the fraud case calls for TD to pay approximately US$12.6 million in civil penalties. She also faces criminal penalties of US$9.4 million, which court documents say is the legal maximum, as well as US$4.7 million in victim compensation and US$1.4 million in forfeiture.
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