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,…