February 10, 2021, By Lynnley Browning
A wealthy grandmother won a $19 million arbitration award against J.P. Morgan Securities and two former brokers — her grandsons — over alleged unauthorized trading in her accounts.
The ruling came 18 months and 43 hearing sessions after retail matriarch Beverley Schottenstein filed claims against the firm and her grandsons for alleged abuse of fiduciary duty, fraudulent misrepresentations and omissions and other misconduct. A panel of three FINRA arbitrators ruled in her favor Feb. 5, according to the arbitration award.
Schottenstein’s late husband and his brothers developed a retail empire that became Schottenstein Stores Corp. and later grew to include stakes in shoe retailer DSW, clothing chain American Eagle Outfitters, American Signature Furniture, more than four dozen shopping centers, several shoe and furniture factories and grocery chain Albertson’s Companies, among other holdings, according to business data company Dun & Bradstreet. Read more