FINRA Fines J.P. Morgan Over Failure to Supervise a Former Advisor

Posted on August 19th, 2022 at 1:30 PM
FINRA Fines J.P. Morgan Over Failure to Supervise a Former Advisor

From the Desk of Jim Eccleston at Eccleston Law.

The Financial Industry Regulatory Authority (FINRA) has fined J.P. Morgan $200,000 for failing to reasonably supervise a former advisor who made several unsuitable trades in his wealthy grandmother’s account.

The grandmother, Beverly Schottenstein, won nearly $19 million in damages last year in a FINRA arbitration in which she alleged that J.P. Morgan and her two grandsons had mishandled her account. Evan Schottenstein and Avi Schottenstein were the advisors responsible for managing the account, but neither advisor was named in the settlement between FINRA and J.P. Morgan. Evan Schottenstein, who has been barred from the industry, began servicing the account in 2014 when his grandmother transferred $15 million in structured notes to J.P. Morgan from her previous firm, according to FINRA.

FINRA categorized J.P. Morgan’s supervision of the advisor as inadequate over the next five years. Evan Schottenstein, who was terminated from J.P. Morgan in 2019, invested the account in structured products and exceeded firm limits, according to FINRA. FINRA additionally alleged that Schottenstein created a fake email account in his grandmother’s name and subsequently forged her signature on a $5 million private equity investment.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

You are the best attorneys in the country.

CC

LATEST NEWS AND ARTICLES

September 16, 2025
Former Morgan Stanley Advisors Win Partial Court Victory in Client Solicitation Dispute

Two former Morgan Stanley advisors in Hackensack, New Jersey have defeated Morgan Stanley’s initial effort to block them from soliciting clients, according to an August 15 order from New Jersey Superior Court.

September 15, 2025
California Young-Gun Investor Charged in Alleged $6 Million Ponzi Scheme

Federal prosecutors have accused Mihir Deepak Sukthankar, a California resident once celebrated as a teenage trading “prodigy,” of orchestrating a multi-million-dollar Ponzi scheme.

September 12, 2025
LPL Broker Fined and Suspended for Recommending Risky Investments to Elderly Client

An LPL Financial broker in Elizabethtown, Kentucky, has agreed to sanctions after FINRA found he violated Regulation Best Interest (Reg BI) when recommending unsuitable investments to an elderly customer.