Lawsuits and counterclaims over collapse of builder Stateview probe TD’s role in fraud

As Ontario courts continue to sift through the wreckage of insolvent real estate developer Stateview Homes some lawsuits have honed in on the question of how a $37-million cheque kiting scheme was allowed to run for more than a year.

Civil claims filed by Tarion Warranty Corp. have raised questions about internal controls at embattled Toronto-Dominion Bank, introduced the possibility that insiders at the bank may have assisted in the scheme and revealed new details about how the fraud was carried out.

Tarion’s allegations are also echoed in new lawsuits and counterclaims filed by Dino and Carlo Taurasi – brothers and founders of the collapsed developer – who criticized TD’s failure to detect the fraud in a rare public statement provided to The Globe by their lawyers.