February 12, 2021 • Karen Demasters
The matriarch of the billionaire Schottenstein family has been awarded $19 million by the Financial Industry Regulatory Authority for illegal trading in her accounts by J.P. Morgan Securities and two of her grandsons, Finra announced Feb. 5.
The compensation is to be paid to Beverley B. Schottenstein, of Bal Harbour, Fla., by J.P. Morgan Securities, and her grandsons, Evan A. Schottenstein and Avi Elliot Schottenstein, who are brothers and were acting as her brokers. The three defendants have denied the allegations that were described in the arbitration award, according to Finra. J.P. Morgan Securities should have flagged the large sales, Finra said. The grandsons worked at J.P.Morgan Securities in New York City.
The Schottenstein family, which is based in Columbus, Ohio, was once on the Forbes list of 100 wealthiest families in the U.S., but has since dropped off the list. In 2015, Forbes set the family’s wealth at $2.7 billion. The Schottensteins headed a fashion, grocery store, retail mall and home building empire that includes retailers, such as DSW and American Eagle. It is now overseeing the merger of Albertson’s and Safeway as the parent company of the two grocery store chains. Read more