The Ponzi Blog by Kathy Bazoian Phelps on February 16, 2012, analyzed on the jury verdict of $67 million in favor of Coquina Investments against TD Bank for its participation in the Rothstein Ponzi scheme in Florida. Now two more bank settlements are being reported in the news.
First, TD Bank has settled with the Razorback Group of 55 investors for $170 million. Second, Gibraltar Private Bank & Trust Co. of Coral Gables has settled with the Razorback Group for an additional $10 million. The total of these two settlements - $180 million - is just what the plaintiffs had requested in damages, but the investors will not likely be paid in full because a large chunk of the settlements is most certainly designated for attorney fees.
It is likely that TD Bank settled because it had no reason to believe that the result of a jury trial on the Razorback Group’s claims would turn out any better than the clobbering it just suffered on the Coquina claims.
But why did Gibraltar Bank settle? Perhaps the answer lies in Scott Rothstein’s deposition testimony of December 12, 2011:
Q: That gave you some insensitive [sic] to become a shareholder?