TD Bank unit to pay $28M in penalties for failing to properly supervise rogue trader
By 
Aaron Nicodemus2024-10-01T15:38:00
Broker-dealer TD Securities failed to prevent a trader from placing and then withdrawing thousands of false trades over the course of a year in part because its compliance department failed to follow up on red flags generated by the illegal trades, three regulators said.
TD Securities (TDS), a subsidiary of TD Bank, failed to prevent the head of its securities desk in New York from spoofing the U.S. Treasury cash securities market for 13 months between 2018-19.
The trader, Jeyakumar Nadarajah, is accused of entering false orders on one side of the market to obtain more favorable execution prices on the other side. In November 2023, he was indicted in U.S. District Court for the District of New Jersey for his role in the scheme and is awaiting trial.
Related articles
-
News BriefBroker-dealer BMO Capital Markets to pay $41M to settle trade supervision lapses
A broker-dealer subsidiary of Toronto-based BMO Financial Group will pay nearly $41 million in penalties to the Securities and Exchange Commission to settle allegations that its traders issued misleading disclosures on bonds for three years, causing $19 million in harm to its customers.
-
News BriefSeaCrest to pay $375K to settle charges that it failed to supervise rogue adviser
New York-based SeaCrest Wealth Management will pay a $375,000 fine for failing to properly prevent a cherry-picking scheme perpetrated by one of its investment advisers.
-
News BriefCFPB orders TD Bank to pay $28M for sending false info to credit agencies
TD Bank has been ordered to pay $27.7 million and implement compliance measures, for providing inaccurate, negative credit information to credit agencies about tens of thousands of its customers and taking too long to fix the errors, the Consumer Financial Protection Bureau said.
More from Regulatory Enforcement
-
ArticleSeven years in, GDPR faces growing challenges from AI and ‘consent or pay’ models
Europe’s pioneering data protection legislation turned seven years old in May, but the compliance and enforcement difficulties that have dogged the rules since they came into force look set to present both companies and data regulators with fresh headaches for some time to come.
-
News BriefDOJ charges crypto executive with laundering $530M for sanctioned Russian banks
The Department of Justice has charged the founder of cryptocurrency company Evita with 22 violations for allegedly laundering more than $500 million through U.S. banks and cryptocurrency exchanges, on behalf of sanctioned Russian entities.
-
News BriefSEC Chair Atkins signals end to ‘regulation by enforcement’ in line with Trump’s pro-crypto agenda
The Securities and Exchange Commission Chair Paul Atkins explained his agency’s shift on cryptocurrency regulation to a Senate committee as legislators bargain over President Donald Trump’s “One Big Beautiful Bill” and the GENIUS Act, which would have the federal government invest heavily in cryptocurrency.