The Financial Industry Regulatory Authority (Finra) has permanently banned a former JP Morgan broker after he was accused of making unauthorized purchases and sales of securities in his own grandmother’s account.
Evan Schottenstein agreed to the ban after he refused to testify in Finra’s investigation into the matter without admitting or denying any misconduct.
In February, a panel of Finra arbitrators ordered Evan Schottenstein to pay $9m in compensatory damages to his grandmother, Beverley Schottenstein, along with her trust. The order came as part of a $19m arbitration award in favor of Beverley Schottenstein after she lodged a complaint against JP Morgan, Evan Schottenstein and his brother, Avi Schottenstein. Read more
https://cathyschottenstein.com/wp-content/uploads/2021/02/nanny.jpg327328Cathy Schottenstein Pattaphttps://cathyschottenstein.com/wp-content/uploads/2020/09/logo6.pngCathy Schottenstein Pattap2021-04-14 01:13:262021-04-15 15:13:55Finra bars ex-JP Morgan broker after grandmother’s $19m arb award
In a claim zeroing in on the fairness of virtual hearings, a pair of former J.P. Morgan Securities brokers have asked a court to nullify a high profile $19 million award issued last month by a Financial Industry Regulatory Authority arbitration panel.
Brothers Evan A. Schottenstein and Avi E. Schottenstein filed a motion to vacate in U.S. District Court in the Southern District of Florida on Monday alleging that the arbitration process “broke down” over the 43 hearing sessions as the arbitrators dozed off, failed to address a potential conflict and declined to admit an allegedly key piece of video evidence.
The award was tied to a claim for unauthorized trading and elder abuse brought by their grandmother, Beverley Schottenstein, in July 2019. It qualified for vacature under the narrow grounds provided by the Federal Arbitration Act because the arbitrators ‘exceeded their authority’ by refusing the brothers’ request to postpone the hearing until it could be held in-person, they argued in the filing. Read more
https://cathyschottenstein.com/wp-content/uploads/2021/02/nanny.jpg327328Cathy Schottenstein Pattaphttps://cathyschottenstein.com/wp-content/uploads/2020/09/logo6.pngCathy Schottenstein Pattap2021-04-14 01:12:242021-04-15 15:35:11Ex-J.P. Morgan Brokers Seek to Vacate $19-Mln Award, Cite Napping Arbitrators on Zoom
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
https://cathyschottenstein.com/wp-content/uploads/2021/02/nanny.jpg327328Cathy Schottenstein Pattaphttps://cathyschottenstein.com/wp-content/uploads/2020/09/logo6.pngCathy Schottenstein Pattap2021-04-14 01:12:112021-04-15 15:20:01Grandma wins $19M case against J.P. Morgan and 2 advisors (her grandsons)