"If liability had been established, I would have awarded damages to the JLs based on Mr. Steger’s calculation."- Judgment in 2021 ONSC 3872
This action involved the fallout from the 2009 collapse of Stanford International Bank, a U.S. SEC registrant that had sold USD $8 billion worth of Certificate of Deposits to investors. The company’s senior management and owners were convicted of fraud in the U.S. for operating SIB as a massive Ponzi scheme. The Joint Liquidators sued TD Bank for knowing assistance in breach of fiduciary duty and for negligence in connection with TD Bank’s role as SIB’s primary correspondent bank during 1991-2009.
CHS was retained by Counsel for the Joint Liquidators as financial expert to quantify the losses of SIB as the difference between (i) SIB’s actual liquidation deficit as at the current date and (ii) the estimated liquidation deficit as at each potential liability date, had the fraud been stopped and SIB been placed into liquidation earlier than 2009. CHS calculated SIB’s losses ranging from USD $1.1 billion to $4.3 billion between 1991 and 2007.
The Court did not find the Defendant liable; however, the Court did prefer the damages conclusions of CHS had liability been established.