(Reuters) - Texas billionaire Allen Stanford, accused of an $8 billion fraud that spooked investors around the world, used the services of Toronto Dominion Bank and HSBC, Toronto’s Globe and Mail said, citing court documents.
Court filings indicated that TD Bank, HSBC in Europe and National Republic in the United States provided financial services to Stanford’s Antiguan affiliate, Stanford International Bank Ltd (SIB), the paper said.
HSBC offered no immediate comment on the report.
At one point in 2006, Stanford’s entities had more than $160-million in various TD accounts, the paper said, citing the filings.
The U.S. Securities and Exchange Commission filed civil charges on Tuesday against Stanford, two colleagues and SIB, Stanford Group Co and Stanford Capital Management LLC, accusing them of a “massive, ongoing fraud.”
“Cash sits at three correspondent banks,” the paper quoted a SIB document dated 2005 as saying. The document added that “most money flows through TD,” according to the paper.
Court filings also showed that the Stanford group had $10.1 million invested through TD Asset Management in 2004, the paper said.
“We have been contacted by regulatory authorities and although there are no allegations of wrongdoing on the part of TD, we are, of course, cooperating fully,” TD spokeswoman Julia Koene told the paper.
Koene confirmed to the paper TD is “one of the banks that provide cash management services to Stanford and we do manage a small investment account on their behalf.”
She added that the bank does not distribute any of the Stanford Group investment products and that none of its clients have been impacted through their relationship with the bank.
TD could not be immediately reached for comment by Reuters.
Reporting by Ajay Kamalakaran in Bangalore; Editing by Rupert Winchester