Recently, an investor named Benjamin Chang filed a lawsuit against Interactive Brokers, alleging that Interactive Brokers aided and abetted investors in investment activities that led to the alleged fraud.

In a lawsuit recently filed against Interactive Brokers in the Northern District Court of California, Chang seeks damages for actual damages suffered by himself and the (potential) class, as well as additional damages caused by Interactive Brokers' aiding and abetting fraud and aiding and abetting breach of fiduciary duty.

The plaintiff alleges that he and other groups of victims were victims of a Ponzi scheme run by Interactive Brokers client Haena Park with the knowledge of Interactive Brokers. Hae-na Park fraudulently raised funds from plaintiffs and other victims, then misused the funds for personal gain and paid false dividends to other investors who fell for the scheme.

According to Interactive Brokers, Ms. Park's account had been reported as fraudulent, and during the course of the scam, compliance experts conducted as many as a dozen checks to reconfirm Ms. Park's unusual activity. However, Interactive Brokers ignored warning signs from its own compliance department and ignored internal compliance requirements by helping Haina Park continue her scam through brokerage services provided by Interactive Brokers simply because she was a highly profitable client, rather than analyzing her behavior to further freeze her accounts and alert the police.

Ms. Park had lost more than $14 million from other investors through her account at Interactive Brokers before regulators discovered the scheme. In 2018, Ms. Park was sentenced to three years in prison. In 2020, the SEC, FINRA, and CFTC all filed a joint lawsuit against Interactive Brokers for its role in fraud and other violations, all indicating its involvement in the scheme.

It is worth mentioning that a year ago, Interactive Brokers was fined $38 million for repeatedly failing to meet its anti-money laundering obligations.

Recently, Interactive Brokers also released August trading data, which showed that the average daily revenue transactions in August increased by 24% year-on-year to 217,000.

Interactive Brokers also announced the official launch of mastercard Prepaid cards for Canadian customers. Investors in the country can process all transactions through their IB account balance.