Ex-employee in Florida allegedly played role in laundering millions through shell companies
Another former employee of Toronto-Dominion Bank (TD) has been arrested and charged in connection with a money laundering investigation by the US Department of Justice, marking the latest chapter in a probe that has exposed massive compliance failures within the bank’s US operations.
Leonardo Ayala, 24, who worked at a TD branch in Doral, Fla., from February to November 2023, faces charges of conspiracy to launder money. Ayala appeared in a Miami court on Tuesday, the Justice Department said in a statement Wednesday.
According to prosecutors, Ayala allegedly issued dozens of debit cards for accounts opened under the names of shell companies by another employee. These accounts were reportedly used to launder millions of dollars in drug money through cash withdrawals at ATMs in Colombia.
“Ayala repeatedly and corruptly issued numerous debit cards for TD Bank accounts originally opened in New Jersey, and had those debit cards mailed to an address in New Jersey, despite knowing that he was being directed to do so by individuals that were not the identified account holder,” the criminal complaint revealed.
Ayala is also accused of receiving $2,900 in payments from a Venezuelan national through a money-transfer app in exchange for his role in the scheme.
The charges against Ayala are part of a broader investigation into TD Bank’s failure to prevent money laundering by drug cartels and other criminal organizations, with the bank agreeing to pay $3.1 billion in fines and other penalties. The settlement resolved multiple regulatory probes into TD’s failure to prevent money laundering by drug cartels and other criminals through its American retail business.
Read more: TD bribery issues expand amid new allegations
The investigation identified three separate money-laundering conspiracies involving TD branches, including the so-called “Colombian ATM typology” tied to Ayala. Prosecutors allege five bank insiders, including two previously charged employees from New Jersey and Florida, facilitated the laundering scheme in exchange for fees.
“We identified the activity, reported it, and cooperated closely with authorities in their investigation. We continue to actively support their efforts,” TD spokesperson Elizabeth Goldenshtein told Bloomberg in an email Wednesday.
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