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Beverley Schottenstein

The Grandmother Who Won Her Elder Fraud Case Against Her Grandsons

forbes

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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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