Bloomberg Wealth: At 93, She Waged War on JPMorgan—and Her Own Grandsons (February 17, 2021)

Tom Schoenberg of Bloomberg News has made available for download his article, “At 93, She Waged War on JPMorgan—and Her Own Grandsons,” which discusses the Financial Industry Regulatory Authority’s recent ruling in the dispute between Beverley Schottenstein and her two grandsons at JPMorgan Chase & Co., in which the latter were found liable for fiduciary duty abuse and elder abuse. The summary of the article is as follows: 

Finra’s arbitration process is private by design, and even when settlements are announced few of the underlying allegations are made public. In a brief ruling on Feb. 5, the panel found the bank’s J.P. Morgan Securities LLC unit and the brothers who worked there, Evan Schottenstein and Avi Schottenstein, liable for abusing their fiduciary duty and making fraudulent misrepresentations. The arbitrators also found the bank and Evan Schottenstein liable for elder abuse. It ordered JPMorgan and the bankers to pay Beverley about $19 million between them, representing damages, legal fees and the return of money invested in a private equity fund.

What the panel’s announcement doesn’t reveal is the intergenerational financial struggle that culminated in Beverley taking on her grandsons and a deep-pocketed Wall Street bank. That battle emerges in financial documents, emails, correspondence and testimony from the Finra arbitration, as well as interviews with family members, securities industry records, real estate filings and other materials. Beverley and some of her relatives say they decided to discuss her situation to warn of the potential for elder abuse in every economic strata, and to draw attention to the major financial institution they say helped fuel it.

To see the full article, click here: “At 93, She Waged War on JPMorgan—and Her Own Grandsons.”

Posted by Elise Kim, Managing Associate Editor, Wealth Strategies Journal.

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