Beverley Schottenstein

Grandma wins $19M case against J.P. Morgan and 2 advisors (her grandsons)

financial planning
February 10, 2021, By Lynnley Browning

Read the article on financial-planning.com

j.p.morganA 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

Beverley Schottenstein

Family Affair: Panel Orders J.P. Morgan, Ex-Brokers to Pay $19 Million to Grandmother

February 9, 2021, by Jake Martin

Read the article on advisor hub.com

lawsuit settlementA panel of Financial Industry Regulatory Authority arbitrators on Thursday rendered the agency’s largest award since 2018 in a case brought by a grandmother against J.P. Morgan Securities and two former brokers—her grandsons—for unauthorized trading.

Beverley Schottenstein, 94, in Bal Harbour, Florida, was awarded nearly $19 million in damages plus attorneys’ fees and costs. She had accused J.P. Morgan and Evan A. Schottenstein in New York City, and Avi E. Schottenstein in Los Angeles, of fraud and breach of fiduciary duty over unauthorized purchases of securities between 2014 and 2019 and enrolling her in e-delivery of statements without permission.

Specifically, the respondents purchased multiple auto-callable structured notes and other securities for which J.P. Morgan was a “market maker,” including Apple stock, as well as initial public offerings and follow-on offerings, according to Finra’s case summary. Read more

Beverley Schottenstein

Finra arbitrators order J.P. Morgan, former brokers to pay $19 million

investment news

February 8, 2021 By Mark Schoeff Jr.

See the article at investment news.com

J.P.MorganFinra arbitrators ordered J.P. Morgan Securities Inc. and two former brokers to pay a retailing matriarch $19 million for unauthorized trading of complex products in her account — transactions that were executed by her grandsons.

A three-person Financial Industry Regulatory Authority Inc. arbitration panel in Boca Raton, Florida found the firm and former brokers Evan A. Schottenstein and Avi Elliot Schottenstein liable for constructive fraud and abuse of fiduciary duty, as well as, fraudulent misrepresentations and omissions in trading done on behalf of Beverley Schottenstein, who is Evan and Avi’s grandmother, according to the Feb. 5 award.

In addition, the arbitrators found J.P. Morgan and the grandsons liable for elder abuse under Florida law. The evidentiary hearing in the case was conducted remotely via Zoom. Read more

Beverley Schottenstein

Schottenstein Family Affair Yields About $20 Million FINRA Arbitration Award

February 9, 2021

Read the article at brokeandbroker.com

A recent FINRA arbitration just doesn’t seem to add up. It started in 2019 with an arbitration Complaint. The case then moved into federal court in 2020 as the litigants battled over whether the dispute belonged in court or arbitration. In 2020, the dispute is returned to FINRA, where the case is argued via ZOOM teleconferences. In 2021, the Panel issues a sledgehammer of an award, which will likely surpass $20 million in damages, interest, fees, and costs. Notably, there was a finding that JP Morgan Securities and one of the individual respondents had engaged in elder abuse. And then you look to see if the arbitrators exercised their prerogative to refer the case to FINRA-the-regulator. And you look. And look. But no such referral. $20-plus million. Elder abuse. And, yet, no referral to FINRA regulatory investigation? What more does it take. Just what am I missing here?

July 2019 FINRA Complaint

As the curtain rises on Act II of our drama, the battle rages on after Beverly Schottenstein filed in July 2019 a FINRA Arbitration Complaint against Avi Schottenstein, Evan Schottenstein, and JP Morgan Securities. In a FINRA Arbitration Statement of Claim filed in 2019, Claimant asserted constructive fraud/abuse of fiduciary duty; fraudulent misrepresentations and omissions; and violation of Chapter 415, Fla. Statutes. Beverley B. Schottenstein, individually and as Co-Trustee Under the Beverly B. Schottenstein Revocable Trust U/A/D April 5, 2011, as Amended, Claimant v. JP Morgan Securities, LLC; Evan A. Schottenstein; and Avi E.Schottenstein, Jointly and Severally, Respondents (FINRA Arbitration Award, Case No. 19-02053). Read more

Beverley Schottenstein

In the US, a 94-year-old millionaire punished her grandchildren for embezzling her capital

Read article on freenewslive.com

Beverley Schottenstein TrialAccording to Bloomberg, Florida resident Beverley Schottenstein, who is 94, has secured a multi-million dollar settlement from her grandchildren, who managed her fortune.

The Financial Arbitration Court ruled that Evan and Avi Schottenstein and the bank J. P. Morgan, where they worked as consultants, are required to pay the grandmother a total of $ 19 million. At the same time, the plaintiff’s lawyers demanded compensation of 69 million.

Beverley Schottenstein assigned two grandchildren to take care of her condition about 15 years ago. Evan and Avi, now 39 and 33, managed approximately $ 80 million of her capital.

According to the lawyers of the millionaire, the grandchildren made risky transactions on her behalf. They made long-term investments in complex financial instruments that are not suitable for a 90-year-old investor. Without my grandmother’s permission, they carried out all sorts of operations to get the maximum commission. The grandsons were also accused of defrauding Beverley Schottenstein of a million dollars on her credit card and forging at least one financial document signed by her. The arbitration did not consider possible crimes of the brothers, but, according to the agency, they have already interested prosecutors in New York. Beverley Schottenstein herself, before claiming compensation from her grandchildren, kept a diary for about a year, in which she noted all possible financial abuses. Read more

Beverley Schottenstein

Illustration of difference between public, private shown in case of 93-year-old

freemont news messenger

Damschroder: Ohio STRS provides THE perfect example

John Damschroder Columnist – Mar. 24, 2021

read the full article at thenews-messenger.com

Damschroder

John Damschroder

There’s no better illustration of the difference between public and private financial misconduct than the story of 93-year-old Beverley Schottenstein. The widow of a former Schottenstein Company president and member of the family with their name on Ohio State’s basketball arena, recently won a $19 million settlement from JP Morgan Chase and her grandsons, over allegations that the bank and brokers had profited by churning her account with high cost, inappropriate transactions.

Mrs. Schottenstein didn’t lose money, she just didn’t earn the returns she should have with investments appropriate for the investment interests of a late-in-life retiree. Family members and America’s largest bank managed the account to maximize their own profits. It’s the shorthand version of what AFT claims is happening with public money in private equity.

In Ohio, where losing 100 percent of a $525 million investment becomes a platform to brag and method to boost bonuses, lifting the curtain on private equity won’t matter unless voters pull down the lever against the politicians who let it happen.

Beverley Schottenstein

הכל התחיל בפיצה: מיליונרית בת 94 גילתה שנכדיה גונבים ממנה – ולימדה אותם לקח

beverley and cathy schottenstein

פירוט החשבון הפסיק להגיע, הצ’קים התחילו לחזור וקרן הון-סיכון מאיי קיימן שלחה לה ברכות על השקעתה. בוורלי שוטנשטיין הקשישה סמכה על נכדיה הבנקאים והפקידה בידם את המיליונים שירשה ■ אבל כשהם זייפו את חתימתה וסיכנו את כספה – היא החליטה שזה לא יעבור בשקט

בוורלי שוטנשטיין היא סבתא יהודייה חביבה בת 94 מבל הרבור שבמיאמי, פלורידה. היא נראית צעירה לגילה, מתלבשת ומתאפרת בקפדנות ומלווה על ידי מטפלת שניכר שדואגת לה מאוד. יש לה ארבעה ילדים: רנדי, גארי, צ’אק ובובי, משפחה ענפה ושני נכדים מוצלחים בוול סטריט, שדאגו לנהל את הנכסים של סבתא שלהם. היא מעולם לא דימיינה שבאמצע העשור העשירי לחייה תיאלץ לתבוע את נכדיה ואת הבנק הגדול ביותר בארה”ב — אחרי שאלה הונו אותה.