Man Who Met Trader Through Craigslist Ad Must Repay Brokerage

A man who lost $120,000 shortly after letting a trader he met on Craigslist access his investment account must repay his brokerage, an Illinois federal district judge ruled.

Erik Evert’s “terrible, horrible, no good, very bad day” also included the discovery that his account with Ironbeam Inc.—the terms of which he violated when he gave the Craigslist trader access—lacked default risk protections. Evert’s agreement with Ironbeam was a valid contract, so he’s on the hook for the losses, the U.S. District Court for the Northern District of Illinois said.

Answering a Craigslist ad entitled “let a high level trader make ...