TD Bank is facing more troubles in the US, with the Consumer Financial Protection Bureau (CFPB) recently imposing a $28 million fine on the bank based in Cherry Hill, New Jersey. The penalty arises from internal fraud, involving a former employee who accepted bribes in federal court and facilitated the forging of bank documents.
This former employee, John Natan Stephen Rodriguez from Naples, Florida, pleaded guilty in Newark for running illegal account opening schemes that cost the bank over $70,000. Prosecutors allege that between 2022 and 2023, Rodriguez accepted bribes from numerous individuals—often for hundreds of dollars—in exchange for opening 100-150 accounts using forged documents and false customer information. Some of these accounts were allegedly used for check scams and money laundering, including cases linked to Colombian individuals withdrawing around $170,000 illegitimately through ATMs.
Currently, Rodriguez faces up to 60 years in prison and a $2 million fine. Having been released on bond in November, he awaits his verdict and is permanently barred from employment in the financial sector.
This scandal only adds to the mounting legal and regulatory challenges for TD Bank. In October 2024, federal regulators slapped the bank with a $434 billion asset cap as part of a larger money laundering investigation. This probe found that TD Bank had knowingly allowed branches, including those in New Jersey and New York, to handle illegal funds tied to international drug trafficking, particularly involving fentanyl. The aftermath has prompted executive departures, significant pay cuts, and the closing of numerous planned branches throughout New Jersey.
Still dealing with fallout
Earlier enforcement actions from the CFPB indicated that TD Bank has reported misleading credit information concerning its customers over several years. This misinformation has adversely affected credit scores and consequently hampered clients’ access to loans, jobs, and housing.
To make matters worse, regulators noted that TD Bank not only failed to rectify these errors but continued submitting incorrect data even after identifying numerous fraudulent accounts. There were also delays in relocating personnel from the conflict resolution team responsible for addressing consumer complaints.
Although TD Bank has agreed to pay nearly $8 million in restitution, customers are still expected to ensure the accuracy of their credit reports. The bank is not required to correct damages to credit scores or notify credit agencies about the errors; the burden falls on affected consumers.
What should you do if you are a TD Bank customer?
If you believe you are owed compensation and have previously been unaware of the bank’s actions, you can file a complaint directly with the CFPB.
Background context:
Earlier this year, TD Bank announced plans to close six branches in New Jersey, citing internal revisions and a shift in customer behavior as reasons for a nationwide restructuring. This decision followed the bank’s $3 billion guilty plea, which included instances of bribery, cash transactions, and connections to international drug trafficking. As federal inquiries continue, TD’s reputation within the US banking sector is suffering significant damage.
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📌 TD Bank closes six New Jersey locations as money laundering fallout spreads
