Evan A. Schottenstein of New York New York a stockbroker formerly registered with JP Morgan Securities LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Schottenstein failed to comply with FINRA personnel when he was under investigation for potential trading misconduct. Letter of Acceptance Waiver and Consent No. 2019063430401 (Apr. 7, 2021).
According to the AWC, on July 23, 2019, a Uniform Termination Notice for Securities Industry Registration (known as a Form U5) had been submitted by JP Morgan Securities to FINRA. That revealed that Schottenstein had been discharged from the securities broker dealer supported by suspicions of Schottenstein engaging in bad trading activities and for concerns of him providing inaccurate records in regard to his trading activities.
The regulator opened an investigation into Schottenstein’s activities following that Form U5 notice. Schottenstein was asked by FINRA to provide recorded testimony in response to JP Morgan Securities’ remarks. He was expected to testify on March 25, 2021 as a condition of complying with FINRA Rules 8210 and 2010.
The AWC stated that Schottenstein’s legal counsel made FINRA aware that Schottenstein would not comply with FINRA’s requests. Schottenstein acknowledged for the regulator that he would not make any appearance to testify. FINRA determined that Schottenstein’s refusal constituted the violation of FINRA Rules 2010 and 8210.
Schottenstein has been identified in four customer initiated investment related disputes regarding allegations of his violative actions during the period that he was employed by Morgan Stanley and JP Morgan Securities. FINRA Public Disclosure confirms that a customer filed an investment related complaint involving Schottenstein’s activities in which the customer requested compensatory damages based upon accusations of an unsuitable variable annuity transaction executed by Schottenstein when he was associated with Morgan Stanley.
Schottenstein is referenced in another customer initiated investment related written complaint where the customer sought $150,000.00 in damages founded on allegations that misrepresentations had been made to the customer concerning auction rate securities. On January 10, 2019, a customer filed an investment related complaint involving Schottenstein’s conduct in which the customer requested more than $5,000.00 in damages supported by accusations of Schottenstein effecting a private placement transaction without the customer’s consent while at JP Morgan Securities.
On February 5, 2021, Schottenstein was subject of a customer initiated investment related FINRA securities arbitration claim where the customer was awarded $9,000,000.00 in compensatory based on Schottenstein being found liable on counts of fraudulent omissions and misrepresentations as it pertained to auto-callable structured notes, initial public offerings and follow-on offerings. FINRA Arbitration No. 19-02053. The Arbitration Panel found Schottenstein liable for abuse of his fiduciary obligations to the customer and for elder abuse in violation of Florida securities laws.
Schottenstein was registered with JP Morgan Securities between March 10, 2014 and July 23, 2019.