November 17, 2021
Scam/Fraud

Interactive Brokers Hit With Class-Action Suit Over $23M Ponzi Scheme

What You Need to Know

  • The firm recognized Haena Park’s account was used to conduct a fraud.
  • It disregarded its own compliance department’s red flags, according to the suit.
  • The firm’s participation in the scheme came to light when the SEC, FINRA and CFTC all simultaneously announced a joint action against IB.

Electronic brokerage Interactive Brokers was hit with a class-action lawsuit Monday for allegedly aiding and abetting a $23 million Ponzi scheme.

According to the lawsuit, filed in the United States District Court for the Northern District of California, the firm recognized Haena Park’s account was used to conduct a fraud, identifying her suspicious activity in reports reviewed by compliance analysts more than a dozen times during the life of the scheme.

Park, according to BrokerCheck, is a previously registered broker who also worked at Morgan Stanley and Goldman Sachs.

“Rather than scrutinize the activity,…

Read full article here: www.thinkadvisor.com