TD Securities, a subsidiary of TD Bank, has been fined $28 million for inadequate supervision of a trader who engaged in illegal activities.
The firm failed to prevent the head of its securities desk in New York from engaging in spoofing in the U.S. Treasury cash securities market over a 13-month period from 2018 to 2019.
The compliance department did not take action on multiple red flags associated with the trader's fraudulent activities.
Jeyakumar Nadarajah, the trader involved, was indicted in November 2023 in U.S. District Court for the District of New Jersey and is currently awaiting trial.