TD Bank’s troubles in the U.S. continue to mount. Months after the Consumer Financial Protection Bureau (CFPB) slapped the bank, whose U.S. headquarters are based in Cherry Hill, NJ, with a $28 million penalty—$7.76 million of which is earmarked for customers—the institution is once again under fire. This time, it’s due to internal fraud, as a former TD employee admitted in federal court to accepting bribes and falsifying bank documents.
The employee, Jhonnatan Steven Rodriguez of Naples, Florida, pleaded guilty in Newark to orchestrating an illegal account-opening scheme that cost the bank over $70,000. Prosecutors say Rodriguez took bribes from dozens of individuals between 2022 and 2023—often just a few hundred dollars at a time—in exchange for opening between 100 and 150 accounts using forged documents and fake customer information. Some of those accounts were later used for check fraud and money laundering, including by individuals in Colombia who withdrew roughly $170,000 in illicit funds via ATMs.
Rodriguez now faces up to 60 years in prison and $2 million in fines. He’s out on bond and awaiting sentencing in November. He’s also permanently barred from working in the financial industry.
This scandal adds to an already massive pile of legal and regulatory issues for TD Bank. In October 2024, the bank was hit with a $434 billion asset cap by federal regulators as part of a wide-reaching anti-money laundering probe. That investigation revealed TD knowingly allowed millions in illicit funds—linked to international drug cartels and the fentanyl trade—to move through its branches, including locations in New Jersey and New York. The fallout led to an executive shake-up, slashed salaries, and dozens of planned branch closures across the Garden State.
Customers Still Dealing With the Fallout
The earlier CFPB enforcement action in September 2024 revealed that TD Bank had, for years, reported false or misleading credit information about customers, ranging from fraudulent overdrafts to accounts opened without their consent. That misinformation tanked credit scores and damaged customers’ access to loans, jobs, housing, and more.
Worse, regulators stated that TD not only failed to rectify the issue, but it also continued submitting false data even after identifying hundreds of thousands of fraudulent accounts. It also relocated staff from its dispute-resolution team, resulting in delays in handling consumer complaints.
While TD agreed to pay nearly $8 million in restitution, customers are still on the hook for making sure their credit reports are accurate. The bank is not required to fix the damage done to credit scores or notify credit bureaus of the errors. That responsibility falls squarely on the shoulders of the consumers affected.
What Should You Do If You’re a TD Bank Customer?
If you believe you’re owed restitution and haven’t heard from the bank, you can also file a complaint directly with the CFPB at consumerfinance.gov.
Background Context:
Earlier this year, TD Bank announced plans to close six branches across New Jersey as part of a nationwide restructuring, citing internal changes and shifting customer behavior. The closures come on the heels of the bank’s $3 billion guilty plea in a sweeping money-laundering case involving bribed employees, bags of cash, and international drug operations. As federal investigators continue to dig, TD’s reputation in the U.S. banking sector continues to erode.
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📌 TD Bank to Close Six NJ Locations as Money Laundering Fallout Spreads
Michael is the Editor-in-Chief of New Jersey Digest and Creative Director at X Factor Media. A Bergen County native, he discovered his passion for storytelling while studying at Montclair State University. In addition to his work in journalism and media, Michael is an avid fiction writer. Outside the office, he enjoys kayaking, a bold glass of Nebbiolo, and the fine art of over-editing.