Previously employed individual at TD Bank in Florida faces accusations in an organized crime scheme involving money laundering
The Department of Justice in New Jersey's District revealed that they apprehended Leonardo Ayala, 24, and accused him of participating in a money laundering conspiracy.
This arrest occurred after TD Bank, a significant banking institution, was slapped with a significant fine in October due to accusations of "long-term, widespread, and systemic deficiencies" in their procedures for monitoring transactions, as stated by the US Department of Justice.
From January 2018 to April 2024, more than 90% of transactions remained unchecked, creating an opportunity for three money laundering networks to funnel over $670 million through TD Bank accounts, as per previous legal documents.
This is an unusual instance of the authorities targeting an individual bank employee in such a case. However, the concern from the Justice and Treasury departments heightened in 2024 over cartels utilizing the US banking system to launder profits generated from selling illicit substances like fentanyl.
A senior Treasury official disclosed to CNN in May that couriers laundering funds for cartels were opening accounts in banks both large and small throughout the US.
According to court documents filed in the US District Court in New Jersey, Ayala, who worked at a TD Bank location in Doral, Florida, near Miami in 2023, started helping in the laundering scheme in June 2023.
A different TD Bank employee in New Jersey reportedly opened phony shell accounts. After accepting bribes, Ayala allegedly issued numerous debit cards associated with these fraudulent accounts.
These accounts, which Ayala aided in distributing, were utilized for laundering narcotics proceeds through ATM withdrawals in Colombia, and the investigation revealed that millions of dollars were laundered to Colombia via Ayala's serviced accounts, according to the New Jersey U.S. attorney's office press release.
A shell company's account that Ayala issued debit cards for reportedly moved over $500,000 from the United States to Colombia via ATM withdrawals, as per the complaint. Meanwhile, debit cards for another shell company were used to transfer over $800,000 between the two companies.
Ayala made his court appearance in Miami federal court on Tuesday and was released under house arrest and a $100,000 bond. A money laundering conspiracy charge, as per the US attorney’s office, carries a maximum sentence of 20 years in prison and either a $500,000 fine or double the amount laundered.
CNN reached out to TD Bank for comment, and they are attempting to contact Ayala's attorney.
In October, TD Bank CEO Bharat Masrani acknowledged, "This is a trying period in our bank's history. These oversights took place under my leadership as CEO, and I extend my sincere apologies to all our stakeholders."
TD Bank announced plans to intensify its money-laundering surveillance efforts and employ more than 700 new specialists. The U.S. Treasury Department’s Financial Crimes Enforcement Network will monitor TD Bank for four years following this incident.
The October fine for TD Bank included a $1.3 billion penalty to FinCEN, $1.8 billion to the US Justice Department, and a guilty plea to resolve the US government's allegations that the bank violated the Bank Secrecy Act and facilitated money laundering.
This report was prepared by CNN's Matt Egan and Jordan Valinsky.
The money laundering conspiracy involved utilizing TD Bank's accounts, highlighting concerns about banks being used for such activities. Despite the bank's efforts to enhance its money-laundering surveillance, its failure to monitor transactions led to significant fines and allegations of facilitating illegal activities, affecting its business reputation.
