A screenshot from June, 2023, surveillance video shows former TD employee Leonardo Ayala at the TD retail location in Doral, Fla., where he worked. Mr. Ayala has been charged with "exploiting his position as a bank employee” to assist a money laundering network, according to a U.S. Department of Justice press release.Supplied
A former Toronto-Dominion Bank employee based in Florida was arrested and charged Tuesday for allegedly facilitating money laundering through the lender to Colombia.
The charge is the latest in the continuing investigation by the U.S. Department of Justice and regulators into TD’s role in shuttling hundreds of millions of dollars in drug proceeds. In October, TD pleaded guilty to conspiracy to commit money laundering and must pay a penalty of more than US$3-billion and address several strict requirements set by U.S. regulators and law enforcement.
Leonardo Ayala, who worked at a TD retail location in Doral, Fla., between February, 2023, and November, 2023, allegedly “exploited his position as a bank employee” to assist a money laundering network, the DOJ said in a news release Wednesday.
It alleged that after another TD employee opened accounts in the names of shell companies, Mr. Ayala issued dozens of debit cards for the accounts in exchange for bribes.
“Those accounts were then allegedly used to launder millions of dollars in narcotics proceeds through cash withdrawals at ATMs in Colombia,” the DOJ said in the release.
Another surveillance video screenshot from the Doral, Fla., TD location shows Mr. Ayala at the time of some of the alleged money-laundering-related actions.Supplied
Mr. Ayala made his first appearance in Miami federal court on Tuesday. He is charged with one count of conspiracy to commit money laundering, which could carry a maximum penalty of 20 years in prison.
TD said Wednesday it has co-operated with the investigation.
“We identified the activity, reported it and co-operated closely with authorities in their investigation,” TD spokesperson Elizabeth Goldenshtein said in an e-mailed statement. “We continue to actively support their efforts.”
U.S. officials have charged other former TD employees in cases involving allegations of money laundering. The DOJ’s complaint in Mr. Ayala’s case does not identify whether he was involved in those other cases.
But when the U.S. Department of Justice unveiled the details of its settlement with TD in October, U.S. Attorney-General Merrick Garland said that at least one of the money laundering schemes involved five TD bank employees.
Gerardo Aquino Vargas, a former retail employee in Hollywood, Fla., (which is near Miami and a short drive from the branch where Mr. Ayala worked), has been accused of allegedly accepting bribes to create bank accounts, providing debit cards and granting online access for individuals to transfer millions of dollars to Colombia, largely through automated teller machines (ATMs), according to court documents filed in the United States District Court for the District of New Jersey.
Oscar Nunez-Flores, a former bank employee at a New Jersey branch, was accused of allegedly accepting bribes and helping to shuttle millions of dollars in drug-trafficking proceeds to Colombia through accounts linked to shell companies.
It will take years for TD to remediate its anti-money laundering failings and meet the extensive requirements of U.S. regulators. During its fourth-quarter earnings release last week, the bank suspended its medium-term growth targets and said it is developing a turnaround strategy.
“AML remediation remains our top priority. We have assembled an AML team with experienced executives and specialists from across the industry,” incoming chief executive officer Raymond Chun said during a conference call with analysts.
“I’ve been clear that my expectation is that accountability goes beyond the AML team. We’ve established clear accountability and alignment across all three lines of defence, starting on the front line and carrying through to the risk-management and audit teams – both for the U.S. and the enterprise more broadly.”