A 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
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 01:11:352021-04-15 15:25:48Family Affair: Panel Orders J.P. Morgan, Ex-Brokers to Pay $19 Million to Grandmother
Finra 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
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 01:10:242021-04-15 15:26:25Finra arbitrators order J.P. Morgan, former brokers to pay $19 million
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
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 01:01:552021-04-15 15:27:35Schottenstein Family Affair Yields About $20 Million FINRA Arbitration Award