In a FINRA Family Affair, Billionaire Florida Grandmother Awarded Approximately $20 Million
On February 5th, 2021, a Financial Industry Regulatory Authority (FINRA) arbitration panel in Boca Raton, Florida awarded a wealthy Florida grandmother nearly $20 million in compensation in a broker misconduct claim (Case Number: 19-02053). Notably, the named respondents—both former representatives of the New York, New York-based brokerage firm J.P Morgan Securities LLC—are the grandsons of the victim. In this post, our Miami elder financial fraud attorney discusses the allegations, the findings, and the decision from the FINRA arbitration panel.
Allegations: Unauthorized Trading and Elder Financial Fraud
The arbitration claim was filed against J.P Morgan Securities LLC, Evan A. Schottenstein (CRD#: 4929175), and Avi Elliot Schottenstein (CRD#: 5708665). Both individuals were registered brokers and investment advisers at the firm. The claim was filed on behalf of Beverley B. Schottenstein, a resident of Bal Harbour, Florida. She is the grandmother of the two brokers named in the complaint. Along with other causes of action, the FINRA arbitration claim alleged:
- Constructive investment fraud;
- Breach of fiduciary duty;
- Material misrepresentations;
- Material omissions; and
- Elder financial abuse.
According to information included in FINRA’s official documents, the investment fraud complaint is related to alleged authorized purchases of various securities and financial products, including Apple stock and several initial public offerings (IPOs). As J.P Morgan Securities was a market-maker on the transactions, the claimants alleged that the brokerage firm brought in significant commissions and revenue as a direct consequence of the misconduct of its representatives.
FINRA Arbitration Award: Nearly $20 Million in Financial Relief
After hearing the evidence presented by all parties, the South Florida FINRA arbitration panel found in favor of the claimants—determining that J.P Morgan Securities LLC and both of the Schottenstein grandsons were liable for damages. The panel issued the following awards:
- P. Morgan Securities is liable for $4.71 million in compensatory damages;
- Evan A. Schottenstein is liable for $9 million in compensatory damages; and
- Avi Elliot Schottenstein is liable for $602,000 in compensatory damages.
In addition to the individual sanctions, the respondents also bear collective liability for several hundred thousand dollars of costs and fees. Neither Evan A. Schottenstein nor Avi Elliot Schottenstein are currently associated with J.P. Morgan Securities. In July of 2019, they both ended their relationship with the national brokerage firm.
Call Our Miami Elder Financial Fraud Attorneys for a Confidential Consultation
At Carlson & Associates, P.A., our Florida investment fraud lawyers are driven to help our clients maximize their financial recovery. Elder financial fraud claims are complex legal cases and you and your family deserve the highest quality legal representation. If you or someone you know was the victim of elder financial fraud, we are here to help. Call us today or reach out to us online to set up a fully confidential initial consultation. With a law office located in Miami, we represent investors throughout Florida, including in Miami Beach, Fort Lauderdale, West Palm Beach, and Jupiter.
Resource:
finra.org/sites/default/files/aao_documents/19-02053.pdf