TD Bank anti-money laundering employee in U.S. faces New York criminal charge – National

An American TD Bank employee who worked in the bank’s heavily scrutinized anti-money laundering department has been criminally indicted in New York, the Manhattan district attorney announced Thursday.

Daria Sewell is charged with unlawful possession of personal identifying information she allegedly stole from TD Bank customers and distributed on Telegram, according to a statement from Alvin Bragg’s office.

The indictment comes shortly after TD Bank’s U.S. arm pleaded guilty to violating a U.S. law aimed at preventing money laundering — the largest bank ever to do so — and was hit with a historic US$3 billion fine.

“This defendant allegedly abused her access while working in TD Bank’s anti-money laundering department to steal from the bank’s own customers,” Bragg said in a statement.

“Telegram can be a hotbed for criminal activity, and we have uncovered everything from fraud to the sale of illegal firearms and the financing of terrorism.”

The charges against Sewell stemmed from a larger investigation that charged five more people in an alleged cheque fraud scheme that totaled nearly US$500,000, the district attorney’s office said, which allegedly saw the accused deposit stolen cheques into their personal bank accounts.

The investigation found the other five defendants, among others, allegedly communicated with Sewell about “strategies for committing” cheque fraud.

According to the indictment, a search warrant executed on Sewell’s phone found she had images of 255 cheques with names of TD Bank customers, along with personal information of nearly 70 other customers including names, addresses and social security numbers.

Sewell then allegedly distributed the information on a Telegram channel she operated, and would instruct others to open bank accounts to deposit the cheques. She would then split the profits with those people, according to the indictment.

The 32-year-old Sewell, a New York resident who worked for TD from 2023 to May 2024, has not yet responded to the charge and the allegations in the indictment.

Bragg’s office said the investigation into the cheque fraud scheme and Sewell’s alleged conduct remains ongoing.

In its indictment of TD Bank’s U.S. divisions last year, the U.S. government had accused TD of ignoring multiple red flags from high-risk customers and creating a “convenient” environment for money laundering.

TD’s failure on money laundering controls allowed criminals to launder more than US$670 million through the bank over six years, including profits from fentanyl trafficking., according to U.S. authorities.

Trending Now

• 

  Canada Post, union still at odds as strike looms. What are the sticking points?

• 

  Read the transcript of Kamala Harris’ concession speech after election loss

TD Bank’s settlement of the charges included accepting an asset cap on its U.S. business interests, preventing it from expanding any further.

U.S. Sen. Elizabeth Warren, a Democrat from Massachusetts and a frequent critic of financial institutions, wrote to the U.S. attorney general last week that the settlement failed to hold corporate executives accountable.

Warren said both executives and the bank itself were able to escape the full scope of penalties that Congress could have levied, despite allowing the bank “to act as a criminal slush fund and hurt hundreds of thousands of people.”

TD has said it is making the investments, changes and enhancements required to deliver on commitments regarding its anti-money laundering program both in Canada and the U.S.

Fintrac, Canada’s national financial intelligence agency imposed a record $9.2 million penalty on TD earlier this year for lax money laundering controls.

Prime Minister Justin Trudeau said last month he is “concerned” about the actions alleged at TD, and the federal government says it has introduced a significant number of measures to strengthen Canada’s money laundering oversight.

— with files from the Canadian Press

&copy 2024 Global News, a division of Corus Entertainment Inc.