Media and News

Beverley Schottenstein

How to Keep Money From Destroying Your Family Relationships

Bloomberg Watch Article
By Suzanne Woolley – Feb 17, 2021

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bloomberg wealth(Bloomberg) — You don’t have to be as rich as Brooke Astor for money to cause problems in the family.

Whether it’s fights over inheritance or simply disagreements over how money has been invested, the pain and anger tends to be magnified when relatives are involved. Disputes over financial issues can cause untold problems across all social spheres — even in families that don’t think of themselves as wildly dysfunctional. About 15% of siblings say they’ve had conflicts over issues such as inheritance and fairness, a 2017 survey by Ameriprise Financial found. In Astor’s case, her only son was convicted of siphoning millions from her estate while she suffered from Alzheimer’s — in particular, for giving himself a $1 million raise for managing her money. And then there was the teenage Pritzker heiress who sued her father and extended family, accusing them of looting her trust funds. Read more

Beverley Schottenstein

Opinion: It’s time to stop calling brokers ‘financial advisers’

marketwatch

March 18, 2021 – By Pam Krueger

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Stop calling brokers financial advisors

Regulations and reforms to protect investors aren’t working and need repair.

This report misidentified the brokerage firm involved in the arbitration settlement. The story has been corrected.

A recent story about a 94-year old woman whose grandsons criminally mismanaged her wealth is just another reminder of how years of attempts to rein in the excesses of the brokerage industry have done little to protect consumers from harm.

For years, Florida retail matriarch Beverley Schottenstein trusted her two grandsons, both so-called financial advisers at brokerage J.P. Morgan Securities, to manage her investments. They exploited her trust by committing various kinds of fraud. According to a complaint Schottenstein filed with FINRA, the private body that oversees the brokerage industry, the grandsons forged her signature on key documents and bought and sold risky and expensive securities without her permission, resulting in losses of more than $10 million while generating hundreds of thousands of dollars in commissions for both themselves and J.P. Morgan. Read more

Beverley Schottenstein

Bilked wealthy Grandma reaches secret deal with two former JPM brokers — her grandsons

financial planning

By Lynnley Browning – April 16, 2021

Read the article on financial planning.com

Beverley Schottenstein Trial
The wealthy Florida grandmother who accused her two grandsons of mishandling her money while working at JPMorgan Chase apparently has a soft heart.

Beverley Schottenstein, 94, has waged high-profile battles with the Wall Street bank and her financial advisors there — her grandsons, brothers Evan Schottenstein and Avi Schottenstein— for allegedly abusing their fiduciary duty and making fraudulent misrepresentations while handling her roughly $80 million account.

In the weeks after industry watchdog FINRA ordered J. P. Morgan Securities and the two grandsons in February to pay her a collective $19 million — with more than $9 million coming from Evan Schottenstein — she quietly reached a deal with her grandsons that’s more favorable to them.

Under the arrangement, which is buried in a previously-unreported filing made last month in federal court in Miami, she plans to accept from at least one of the grandsons less than what FINRA ordered. Read more