Gayla Sue Levin, the wife of Pompano Beach businessman George Levin, filed a lawsuit Wednesday against TD Bank for its alleged role in the destruction of her fortune invested with ex-law firm chairman Scott Rothsein.
William Scherer, a Fort Lauderdale partner with Conrad & Scherer who negotiated a $170 million settlement with the bank on behalf of Rothstein investors with Razorback Funding LLC, filed Levin’s lawsuit.
The complaint states Levin invested or made herself the personal guarantor on loans obtained by other companies that put money into the Ponzi scheme organized by the head of Rothstein Rosenfeldt Adler, who is serving a 50-year federal prison sentence for fleecing investors of $1.2 billion.
TD Bank was an important conduit through which Rothstein set up accounts and laundered money to maintain the illusion that investors were buying into legitimate settlement financing deals based on sexual harassment claims that never actually existed.
Levin’s lawsuit states her net worth, once estimated at $300 million, “has been diminished to a fraction of what it had been.”
The Levins helped guide investors to Rothstein. Because of their role, they became the targets of two significant court actions.
Herbert Stettin, the trustee overseeing the bankruptcy of Rothstein’s law firm, filed a clawback lawsuit. Another came through the involuntary bankruptcy of three New York-based hedge funds.
After success with the Razorback settlement and revelations that came out in Coquina Investments LLC’s case against TD Bank in January, Scherer said investors who had yet to sue TD Bank were in a better position.
TD Bank was hit with sanctions in Miami federal court after the judge blamed the bank for withholding incriminating evidence. Its law firm, Greenberg Traurig, was sanctioned as well.
Levin is accusing TD Bank and two of its officers of aiding and abetting the fraud and civil conspiracy to defraud.