Former TD Bank employee’s guilty plea highlights insider threats in AML controls

A former employee of TD Bank, N.A. has pleaded guilty to accepting bribes and abusing his position to help move millions of dollars in illicit funds out of the United States, a case that highlights anti-money-laundering vulnerabilities inside financial institutions.

Last week, Leonardo Ayala of Homestead, Florida, entered a guilty plea in federal court in Newark, admitting his role in a scheme that laundered approximately $5.5 million to Colombia while he was employed at the bank.

According to court documents, “Leonardo Ayala … accepted bribes and exploited his position as a bank employee to help launder drug money to Colombia.” Prosecutors said the criminal conduct occurred from June 2023 through to November 2023.

During that period, Ayala used his access as a bank employee to open fraudulent accounts connected to shell companies, issue and activate more than 150 debit cards, and remove internal restrictions placed on cards that had been flagged for suspicious activity. Those accounts were then used to carry out more than 12,000 ATM withdrawals in Colombia, transferring roughly $5.5 million overseas.

In exchange for facilitating the scheme, Ayala received more than $6,000 in bribes, paid through a combination of cash and peer-to-peer electronic transfers.

Ayala pleaded guilty to two counts: conspiracy to launder monetary instruments and accepting bribes as a bank employee. The money-laundering charge carries a potential sentence of up to 20 years in prison, while the bribery count carries a maximum penalty of 30 years. Sentencing is scheduled for June 11, at which time the court will consider federal sentencing guidelines and other statutory factors.

The investigation involved multiple federal agencies, including the Drug Enforcement Administration, IRS Criminal Investigation, and the FDIC Office of Inspector General.