One of five banks facing a multi-billion-dollar fraud trial next month in Houston for providing financial services to Ponzi scheme perpetrator R. Allen Stanford and his investment firm has agreed to settle its part of the case for $100 million.
Mississippi-based Trustmark Corp., parent of Trustmark National Bank, agreed late New Year’s Eve to pay the $100 million instead of facing a federal civil fraud trial alongside four other banks accused of “aiding, abetting and participating in the fraudulent scheme” perpetrated by Stanford and his associates.
“Trustmark makes no admission of liability or wrongdoing in connection with any Stanford matter,” Trustmark said in a document filed Dec. 31 with the U.S. Securities and Exchange Commission. “Trustmark expressly denies any liability or wrongdoing with respect to any matter alleged in regard of the multi-billion-dollar Ponzi scheme operated by Stanford for almost 20 years. Trustmark’s relationship with Stanford consisted of ordinary banking services provided to business deposit customers.”
The settlement is another victory for the court-appointed receiver, Dallas lawyer Ralph Janvey, who will have now recovered more than $1.2 billion for the thousands of investors who claim they were defrauded more than $5 billion by Stanford and the Stanford Financial Group between 1999 and 2008.
The four remaining banks – Toronto-Dominion Bank (TD Bank), HSBC Bank, Independent Bank…
