There are ways to do this that don't implicate the broker.
For example, I could lure people in and get them to open accounts at a very honest and well-regulated broker under my IB link (if I had one). Perhaps I'd get paid per signup, or maybe I'd get paid part of the spread per trade, or perhaps I'd be on a hybrid plan that blends these 2 payment options. In any event, I could then destroy the accounts and still collect money. The broker would bear zero legal or ethical responsibility.
Of course, it is possible for a bad broker to work with bad account managers. The problem is the end result is identical, so it's very hard to prove if the broker had anything to do with it or not.
If someone did this to you, report them to the broker. This will not get your money back, but many brokers will block account managers like this - but ONLY if people take the time to report what the account manager did. Does this person have his own website?
You should also report this person to
econsumer.gov - Your site for cross-border complaints.