Florida grandma heats up $10 million fight against former JPM brokers – her grandsons

by Lynnley Browning
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Beverley and Cathy Schottenstein

Beverley Schottenstein, right, and her granddaughter Cathy Schottenstein Pattap in Bal Harbour, Florida, on Dec. 30, 2020. Bloomberg News

A wealthy Florida grandmother has intensified her legal battle to force two former brokers at J.P. Morgan Securities — her grandsons — to pay her at least $10 million as ordered by regulators for unauthorized trading in her accounts.

The grandsons, who are brothers, handled Beverley Schottenstein’s roughly $80 million account when they worked as brokers at the Wall Street bank. In recent months, they’ve been trying to force their 95-year-old grandmother into court-ordered talks to slash the amount of money that an industry arbitration panel ordered them last year to pay her.

But in a Feb. 24 ruling, a Florida judge said no dice to the grandsons’ effort, ordering that Schottenstein’s lawsuit against them proceed without court-driven mediation. Read more


Schottenstein Settlement Nixed by Judge as High-Dollar Family Fight Rolls On

by Jake Martin – Read the article on

Nanny Schottenstein

Beverley B. Schottenstein in Bal Harbour, Florida won a Finra arbitration award last year for $19 million against her grandsons, Evan and Avi Schottenstein, and their former employer, J.P. Morgan Securities.

The dispute between retail matriarch Beverley Schottenstein and her grandsons, former J.P. Morgan Securities brokers Evan and Avi Schottenstein, last week entered a new chapter that revived the threat of higher liabilities for the two brothers fighting with their grandmother.

Judge Beth Bloom, who has presided over the multimillion-dollar intrafamily battle in U.S. District Court for the Southern District of Florida, denied the younger Schottensteins’ motion to enforce a settlement they claimed to have reached last year with their nonagenarian grandmother that would have significantly reduced their liability in the $19 million arbitration award at issue. Bloom based her February 22 order on the recommendation of a magistrate judge. Read more


Growing Up Schottenstein: The Blessing and Burden of Belonging to Columbus’ Last Dynasty

The inside story of Columbus’ most extraordinary family and the challenges facing its next generation.

Dave Ghose – Read on

growing up schottenstein - image of Schottenstein family in department store they ran

Saul, Jerome and Jay Schottenstein in their store in 1987 Columbus Dispatch File

The photo helped break the ice.

Cathy Schottenstein noticed it right away when she entered the beachfront condo in Surfside, Florida. On a wall near her second cousin David Schottenstein’s kitchen, she saw a framed image of her grandfather Alvin and his three brothers: Leon, Saul and Jerome. Cathy had never seen this particular photo—the four Columbus retail pioneers, looking young, handsome and sharply dressed—and it helped her connect with David, Leon’s grandson, whom she’d never met before, even though both grew up in Central Ohio. It reminded her of their shared lineage. “There was something nice about that,” she says.

The photo also was a memento of a more united time. Starting in the early 1980s, relatives began to splinter in her branch, fighting over the Columbus-based business empire that the foursome had built from a single discount department store that their father, Ephraim Schottenstein, founded on Columbus’ South Side. Now, a new internecine dispute had emerged: Alvin’s widow, Beverley, Cathy’s grandmother, was accusing two of her grandsons, Evan and Avi Schottenstein, of mishandling her roughly $80 million fortune in their roles as her financial advisers.

The Schottenstein Family Tree: How the various branches of Columbus’ sprawling last dynasty connect to each other

On this February 2019 morning, David, a retail entrepreneur and investor, explained to Cathy why he’d asked to meet with her. As they talked over coffee and pastries, David—pronounced “da-veed,” the Hebrew elocution—didn’t make any specific demands of Cathy, who was supporting her grandmother’s efforts to pursue a complaint against her cousins with the Financial Industry Regulatory Authority, or FINRA, the nonprofit that disciplines registered broker-dealers in the U.S. Mostly, he offered to help the two sides start communicating again. He wanted to avoid a protracted public battle that might embarrass the family, the kind of discord that had become too common in recent decades. “I think he saw himself as a peacemaker,” Cathy says.

Indeed, David did seem to occupy a unique space in the family. As a child, he told Cathy, he made friends with estranged cousins, and he continued to build relationships with them and other relatives as an adult, bridging the divisions within the family. He even became close with Jay Schottenstein, the head of the family’s vast network of retail and real estate interests (and the son of Jerome, who waged a bitter legal battle against David’s father and uncle, Tom and Bill). Read more


BenBella Books is excited to announce our new partnership with Cathy Schottenstein!

Granddaughter of Schottenstein retail dynasty matriarch Beverley Schottenstein Cathy Schottenstein’s NANNY’S WAR, the inside story–optioned for development by HBO Max–of the Schottenstein family and how two of Beverley’s own grandsons, Evan and Avi Schottenstein, along with their former employer J.P. Morgan Securities, abused Beverley for years and misappropriated $100 million of her money, to Leah Wilson and Glenn Yeffeth at BenBella Books, by Herb Schaffner at Big Fish Media (world).

Beverley Schottenstein

Beverley Schottenstein with her grandsons Avi, left, and Evan, right, from a family photograph.


Beverley Schottenstein

JPMorgan Ex-Brokers Fight Grandma in Court, Seeking Her Silence

Bloomberg Watch Article
By Tom Schoenberg
November 18, 2021, 8:00 AM EST

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beverley schottenstein

A 95-year-old Florida woman who won an arbitration fight against her banker grandsons is now battling them in court — seeking to collect the award, and also to preserve her ability to speak freely about her experience.

Beverley Schottenstein prevailed earlier this year in a financial industry arbitration after accusing JPMorgan Chase & Co., and two of her grandsons who handled her account there, of improper trading in her $80 million portfolio, in a case that highlighted the complications and conflicts that can arise when bankers manage money for family members.

The panel found JPMorgan’s securities unit and the two advisers liable for abusing their fiduciary duty and making fraudulent misrepresentations. It also found the bank and one of the grandsons, Evan Schottenstein, liable for elder abuse, ordering about $19 million in damages. Read more

Beverley Schottenstein

Psychology of Aging – Interview with Cathy Schottenstein Pattap

center for mental health and aging
Elder Financial Abuse by Family Members: Schottenstein Family Story

Listen to the entire podcast here. (#8 in podcast list.)

Beverley Schottenstein

VIDEO: At 93, She Waged War on JPMorgan and Her Grandsons

Bloomberg Watch Article

Video courtesy of Bloomberg News

Beverley Schottenstein

The Grandmother Who Won Her Elder Fraud Case Against Her Grandsons


by Richard Eisenberg – May 28, 2021

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‘Friends Talk Money’ podcast hosts share cautionary advice based on the Beverley Schottenstein story.

elder fraud Beverley schottenstein

Wealthy Beverley Schottenstein won a landmark case against her grandson brokers

The Beverley Schottenstein $80 million elder financial fraud story is one you won’t believe. But, as my “Friends Talk Money” podcast co-hosts and I explained in our two latest episodes, it’s one you need to know about to protect your parents from becoming victims themselves.

Schottenstein, 94, recently won $19 million in her arbitration case against J.P. Morgan Securities and her grandsons Avi and Evan Schottenstein, her brokers there for five years, ostensibly managing her millions. (Schottenstein is matriarch of the family’s Columbus, Ohio retail dynasty, whose stores included Value City and American Eagle Outfitters AEO -1.5%.)

Problem is, the grandsons wouldn’t tell their grandmother what stocks they were buying and selling. They made hundreds of transactions this way, Schottenstein said. Read more

Beverley Schottenstein

At 93, She Waged War on JPMorgan—and Her Own Grandsons

Bloomberg Watch Article
By Tom Schoenberg – February 17, 2021

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Click here to listen to the companion
audio file for the Bloomberg article.

Beverley Schottenstein said two grandsons who managed her money at JPMorgan forged documents, ran up commissions with inappropriate trading and made her miss tens of millions of dollars in gains. So she decided to teach them all a lesson.

Beverley Schottenstein

Beverley Schottenstein with her grandsons Avi, left, and Evan, right, from a family photograph.
Source: Courtesy Beverley Schottenstein

Beverley Schottenstein was 93 years old when she decided to go to war with the biggest bank in the U.S.

It was a June day, and the Atlantic shimmered beyond the balcony of her Florida condominium. Beverley studied an independent review of her accounts as family and lawyers gathered around a table and listened in by phone. The document confirmed her worst fears: Her two financial advisers at JPMorgan Chase & Co., who oversaw more than $80 million for her, had run up big commissions putting her money in risky investments they weren’t telling her about. It was the latest red flag about the bankers. There had been missing account statements. Document shredding. Unexplained credit-card charges.

Although some relatives urged Beverley not to make waves, she was resolute. What the money managers did was wrong, she told the group. They needed to pay, she said. Even though they were her own grandsons.

And pay they did. With the help of her lawyers, Beverley dragged her grandsons and JPMorgan in front of arbitrators from the Financial Industry Regulatory Authority, or Finra. She sought as much as $69 million. After testimony that spread over months and ended in January, the panel issued a swift decision in Beverley’s favor. Read more

Beverley Schottenstein

Ex-JPMorgan Broker Accused of Bilking Grandma Gets Trading Ban

Bloomberg Watch Article

By Tom Schoenberg
April 13, 2021, 4:44 PM EDT

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Evan Schottenstein refused to comply with watchdog probe.

Adviser allegedly ripped off his wealthy grandma for fees.

A former JPMorgan Chase & Co. financial adviser accused of trading his wealthy grandmother’s assets without her knowledge has been barred from working as a broker by the industry’s watchdog, according to information on the Financial Industry Regulatory Authority’s website.

Evan Schottenstein, without admitting or denying the findings, agreed to the sanction after Finra concluded he wasn’t complying with its investigation into whether he committed misconduct while managing about $80 million for Beverley Schottenstein when she was a client of JPMorgan for nearly five years.

He refused to provide on-the-record testimony to Finra investigators, according to an April 7 addition to his broker report.

Schottenstein and his younger brother Avi were dismissed from JPMorgan in 2019 after their grandmother accused them and the bank of putting her money in risky investments without her knowledge so they could charge high fees and commissions. She also said her name had been forged on financial documents. She brought an arbitration case against them seeking as much as $69 million in damages.

At 93, She Waged War on JPMorgan and Her Own Grandsons (and Won)

In February, an arbitration panel ruled in her favor, finding the brothers and the bank’s J.P. Morgan Securities LLC unit liable for abusing their fiduciary duty and making fraudulent misrepresentations. The arbitrators also found the bank and Evan Schottenstein liable for elder abuse. Read more