Interactive Brokers Faces Class-Action Suit Over $23 Million Ponzi Scheme

Posted on August 17th, 2021 at 11:33 AM
Interactive Brokers Faces Class-Action Suit Over $23 Million Ponzi Scheme

From the Desk of Jim Eccleston at Eccleston Law:

Interactive Brokers faces a class-action lawsuit, which was filed in Northern District of California, for allegedly aiding and abetting a $23 million Ponzi scheme. According to the lawsuit, Interactive Brokers (IB) was aware that Haena Park’s account was used to conduct a fraudulent scheme after compliance analysts flagged her suspicious activity. Park previously was registered as an advisor at Morgan Stanley and Goldman Sachs, according to BrokerCheck. Park lost nearly $14 million in investor funds prior to the scheme being uncovered by regulators. In 2018, Park was sentenced to three years in prison. 

Interactive Brokers’ role in the scheme allegedly was unveiled in 2020 when the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), and the Commodity Future Trading Commission (CFTC) “all simultaneously announced a joint action against IB for its role in the fraud and for other regulatory compliance violations,” according to the suit. Interactive Brokers agreed to pay $38 million to the SEC in August 2020 for repeated failures to submit suspicious activity reports. Additionally, FINRA fined Interactive Brokers $15 million in August 2020 over widespread failures in the firm’s anti-money laundering (AML) program. The class-action suit seeks to recover damages sustained due to the firm’s conduct and assistance provided to Park’s scheme.  

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, class action lawsuit, ponzi scheme

Return to Archive

TESTIMONIALS

Previous
Next

You guys are good!

Mike L.

LATEST NEWS AND ARTICLES

May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.

 

May 15, 2024
NFA Issues Order Against 50.ai Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against 50.ai Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.