Wednesday, September 30, 2015


Frank Spinosa
Frank Spinosa, the TD Bank Regional Vice President in the Scott Rothstein Ponzi scheme scandal, will  apparently be changing his plea to guilty, as a Superseding Information has been filed against him, on a single charge of Conspiracy to Commit Wire Fraud, and his case has been removed from the trial calendar. Spinosa allegedly facilitated Rothstein's billion dollar Ponzi scheme, where investments in non-existent court settlements were sold to victims. The filing of an Information generally means that a plea agreement has been, or shortly shall be, entered into, settling the charges against the defendant, in exchange for a guilty plea.

The Information alleges that Spinosa used the "prestige and legitimacy of TD Bank, and defendant Spinosa's position as Regional Vice President, to give the Broward investors a false sense of security, and induce them into investing in the confidential investments. " Spinosa also was involved in the preparation of false statements, the so-called "Lock Letters,"claiming that funds were frozen.

The change of plea hearing has been set for October 8, 2015. Will Spinosa's cooperation result in new indictments against other individuals, especially senior TD Bank executives ? We cannot say, but there may be Statute of Limitations issues that bar new charges, in some cases, though it is possible that certain Federal conspiracy laws might be applicable.

The lack of a trial, where testimony and documents might have further clarified the role of TD Bank in the Rothstein Ponzi scheme, will unfortunately fail to transparently reveal the bank's internal actions to the public; the full extent of its involvement will remain unknown to the public.

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