Former JP Morgan Banker Gets FINRA Ban After “Bilking” His Wealthy Grandmother
A former JP Morgan financial adviser has been barred from the industry after being accused of trading this grandmother’s assets without her knowledge.
According to the Financial Industry Regulatory Authority’s website, Evan Schottenstein, without admitting or denying the findings, agreed to the bar after the regulatory agency concluded he was not cooperating with their investigation into the trading of about $80 million for his grandmother, Beverly Schottenstein.
Evan “refused to provide on-the-record testimony” to the regulator, according to Bloomberg.
Evan, along with his brother Avi, were both “dismissed” from JP Morgan in 2019 after his grandmother accused him – and the bank – of putting her money into high fee, risky investments without her knowledge. She also accused the group of forging her signature on financial documents. She brought an arbitration case seeking $69 million in damages.
In February, that arbitrator ruled in her favor and found that JP Morgan Securities had abused their fiduciary duty and had made fraudulent misrepresentations. The arbitrators also found both Evan and the bank liable for elder abuse.
JP Morgan was ordered to pay $19 million for “damages, legal fees and the return of money invested in a private equity fund.” Evan is seeking to have the award vacated, she told Bloomberg.
She of her grandson’s ban from the industry: “It was about time. That’s exactly what he deserved.”
Sun, 04/18/2021 – 10:50