IBTX Independent Bank Group Inc

By Dean Seal

Independent Bank Group Inc. has agreed to pay $100 million to exit litigation involving the $7 billion Ponzi scheme carried out more than a decade ago by Stanford Financial Group.

The bank said in a securities filing that the settlement does not include an admission of liability or wrongdoing and resolves claims filed in 2009 against Bank of Houston, which Independent Bank inherited when it merged with Bank of Houston in 2014.

Victims of the Stanford Ponzi scheme had filed suit against multiple banks for allegedly aiding the scheme or ignoring red flags. A trial was set to go forward on Monday against Independent, Toronto-Dominion Bank and HSBC Holdings Plc, but all three banks said they have now reached settlements.

Toronto-Dominion Bank will pay $1.21 billion to resolve the claims against it, while HSBC is set to pay $40 million.

Independent Bank told regulators on Monday that it will make a one-time payment of $100 million to Ralph S. Janvey, the court-appointed receiver for Stanford International Bank, that will be recognized as a non-interest expense for its first-quarter results.

The bank noted that it expects the settlement will be tax deductible, and added that it will remain "substantially above levels considered to be well capitalized under all relevant standards."

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

February 27, 2023 10:05 ET (15:05 GMT)

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