Central Louisiana News

U.S. Senator Bill Cassidy, along with Senators John Kennedy and John Cornyn, has requested answers from the U.S. Department of Justice (DOJ) regarding the Stanford Ponzi scheme victims. The senators are seeking information on why the DOJ has not responded to requests to investigate Toronto-Dominion Bank's involvement in the scheme and why communication with victims' groups has not been maintained.

The Ponzi scheme, orchestrated by Allen Stanford, defrauded American families of seven billion dollars, most of which remains unrecovered. The senators expressed concerns about Toronto-Dominion Bank's compliance oversight lapses that could have facilitated money laundering and other fraudulent activities. They urged the bank to engage with Stanford's victims for a resolution.

The Stanford Financial Receiver also raised similar concerns and asked the DOJ to investigate Toronto-Dominion Bank's role in the Ponzi scheme. According to the senators, there has been no acknowledgment from the DOJ regarding these requests, which they claim is a departure from previous practices of maintaining open communication with victims' groups.

Senator Cassidy has been actively advocating for compensation for Louisianan and American victims of the Ponzi scheme. In 2018, he introduced legislation aimed at ensuring victim compensation. He also met with attorneys representing Société Générale in 2019 regarding $210 million in stolen assets linked to the scheme.

In their letter addressed to Attorney General Garland, the senators reiterated their demand for restitution from banks involved in facilitating the Ponzi scheme and questioned why communications were not maintained or restitution penalties sought as part of recent settlements.