Attorney Bill Scherer, who is representing investors who lost around $98 million, plans to file a lawsuit early next week against Toronto Dominion Bank related to lawyer Scott Rothstein's investment scheme.
Scherer said he has taken statements from people with knowledge about the investments and seen bank records, wire transfers and letters written by bank vice president Frank Spinosa.
Scherer said that he believes Rothstein's scheme -- which he believes ultimately hit around $500 million -- may have started in 2008 with more of the investments occuring this year, particularly in recent months. From Scherer's investors alone, they sank in $100 million between May and October of this year -- and half of that was in October.
In total, about $250 million flowed from Rothstein's firm to the bank and out in October. At that high amount, more people than Spinosa must have noticed at the bank, Scherer said.
"The velocity was supersonic,'' Scherer said. "There had to have been a supersonic boom going off at TD Bank with that amount going through there for a local branch. ... Somebody was opening the floodgates to allow that to happen.''
Scherer won't reveal who he will name at the bank in the lawsuit.
"It was too huge to be just one person in the bank,'' Scherer said. "It can't just be Scott Rothstein and Frank Spinosa on both sides."
Earlier this week, Rebecca Acevedo, a spokesperson for the bank, said in a written statement that the bank has not acted unlawfully.
"We can confirm that Frank Spinosa is on leave during our internal investigation,'' she wrote. "We have been cooperating fully with the investigating authorities, and the receiver since this inquiry began and will continue to do so."