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Schottenstein v. Schottensteins Back in Court Over $19M Arbitration Award

By Alex Padalka June 10, 2021

The multigenerational saga involving a grandmother, her grandsons and JPMorgan that seemingly ended earlier this year with an award of almost $20 million continues, with the grandmother seeking to reopen the case.

In February, a Financial Industry Regulatory Authority arbitration panel ruled in favor of Beverley Schottenstein, ordering JPMorgan and her grandsons Evan Schottenstein and Avi Schottenstein to pay her around $19 million in damages, as reported.

Beverley had claimed that Evan and Ari, who were registered with JPMorgan, made sales and purchases of various products without her authorization, including for various securities for which JPMorgan Securities was a market maker.

In later interviews with Bloomberg, Beverley Schottenstein and several members of her family detailed the “intergenerational financial struggle” that culminated in the Finra award.

On March 8, Evan and Ari Schottenstei filed a combined motion to vacate the arbitration award, according to a motion to reopen the case filed by Beverley on Tuesday in the U.S. District Court for the Southern District of Florida. JPMorgan, meanwhile, has paid its part of the award, according to the document.

Lawyers for the two brothers and their grandmother allegedly reached an oral agreement in March about a settlement sum, which prompted the court to administratively close the case on March 19, the motion to reopen states.

But the saga continues.

“After extensive negotiations, the parties have been unable to reach agreement on the provisions and content of a written settlement agreement, and no written settlement agreement has been finalized. Therefore, pursuant to paragraph 1 of the Court’s order administratively closing the case, Petitioner files this motion to reopen the case and to proceed with the claims asserted in her petition to confirm the Award," the motion states.

JPMorgan had already discharged Evan Schottenstein on Jul. 23, 2019, over “[c]oncerns relating to trading activity for the account of a family member, and the accuracy of the records regarding the same,” according to Finra. This April, the self-regulator barred him, to which Beverley Schottenstein said, “It was about time,” according to Bloomberg, “That’s exactly what he deserved.”

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Tags:  Regulatory/legal issues , JPMorgan , JPMorgan Securities , Financial Industry Regulatory Authority

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