Interactive Brokers Avoids Third Party Investors Arbitration (1)

Interactive Brokers LLC won an injunction halting Financial Industry Regulatory Authority arbitration proceedings against the trading platform arising from investors’ allegations an investment manager had used the firm to further his fraud scheme.

Judge Naomi Reice Buchwald issued the injunction that prevents the investors from pursuing their arbitration on Oct. 13, saying in her opinion that they were not able to establish they were customers of Interactive Brokers or any associated person.

Instead, the investors focused on the fraud allegedly carried out by Andrew Middlebrooks, who managed EIA All Weather Alpha Fund I Partners LLC, and faulted Interactive Brokers ...