« Criminal

Episode 173: Family Money

2021-09-24 | 🔗

When Beverley Schottenstein’s husband Alvin died, she and her children sold their stake in his family’s business, worth an estimated 90 million dollars. Family relationships got complicated. It was hard to know who to trust. And what happened next surprised everyone. Beverley told us, “I was floored.”

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Support comes from Hamilton, beginning October, twentieth on the Camel Cultural Campus Hamilton returns to Philadelphia. It's the story of America, then told by American now featuring a score that blends, Hiphop, jazz, are and be in. Broadway Hamilton created a revolutionary moment in theatre tickets in information on how the camel cultural campus plans to keep you safe, including the current proof of vaccination and mask requirements, are available at Kamal Cultural Campus, dot, org When Beverly shortens, teen was a young woman in the night in forties. She got a job office in New York City. She remembers. But the other women in the office took her up their wings showed her how to do things that when one of them got married, it was to a man from Ohio, and she said they have such nice young men and Ohio,
definitely decided to visit, and her friend took her out dancing. That's how Beverly met her husband, Alvin shot, and at my husband was there at club Gloria but he had a date from with another girl from Ohio state. But when he saw me he was just talking to me all the time he ignored this girl. I thought he was terrible, so he took the girl back to date. They have in those days the girl has been back before midnight and after that girl went back. All he's done. Targeting said I didn't mean to be rude or anything. I got an old sphere.
I told them I was going to New York and that, though it there was the end of it, we definitely told Alfin. Did she be returning to New York? P, said: ok I'll, come to answer those of my Para than blah blah blah wig. Married, not long after that, I really like them the wedding, was very small. Just the rabbi and the two of them, which was the right thing because, as she says, some of those big ones, dont last very long hours, I've ever met then they some guy and my life. You know that really lucky thing that All these years later, you were able to look back and say: who's the guy for me, and I was madly in love with him through a true,
Evans parents under department store called shortens teens. They build the business from the ground up selling for a start, clothing in goods from a horse and carriage in ninety Seventeen, the open to store. Front in Columbus over the years. The business became much bigger. Was shot unseen stores all over Ohio Beverly. So Her husband Alvin played a big rule when the expansion of the Euro for business he had have private browsing, lack, never done things. The men bought their sued from all over. Oh, oh, they used to come to shop insane. Every small town knew where to go. Beverly Alvin had four children? Some of them worked with Alvin and his brothers and the business kept growing they began acquiring other stores. The company would eventual
include stores like American Eagle, Andy S, W in nineteen. Eighty four Alfred shortens dean died. Unexpectedly, he had a heart attack at sixty four. Beverly in their children inherited Alvin stake in the business and they sold it a few years later, Four reported ninety million dollars we're a family that never talked about money. So I had no idea or concept of of how much money she had inherited when my grandfather, Alvin passed away, Cathy shortens team, Pat up one of Beverly, eight grandchildren, I was her house several times a week eyes had frightened I dinner with her every every single Friday for. I had a ban, the conservatory, graduation or any sort of remember my problem. She was they are taking pictures, so my grandmother was very involved in my childhood and in my life starting
as early as I can remember, and she's very lovely and loving woman and she loved to cook ass. She here she's amazing cook. I remember every Friday night dinner there be probably enough food for thought. Then are as they have. It was always so much variety there. When it just be chicken there would be chicken and also a pot roast and also like fifty sides growing up to me. She was most beautiful woman. I had ever seen she's this sort of a stunning almost like social white presence that I always thought belonged in Beverly Hills. I mean she used to look. I used to watch who's the boss on telling And I always thought that she looked exactly like Mona. Who is it? Who was the mother not show I remember when I was really on. I used to think that maybe she really was Mona and and she was living, this double wife and I would call her sometimes if I was watching the show just to see if she would pick up, because I thought like maybe secretly she was
celebrity? Beverly shortens Dean eventually left Ohio and moved on condominium on the ocean and Bow Harbour Florida, just north of my Emmy Beach, where the family had been vacationing for a long time I came to visit my grandmother and we walked across the street. There's a shopping mall and down. There's this. This pizza, restaurant car carapace shows that we used to frequent when I was a child. And we went they are, and we share this little thin cross. Cheese pizza, like we had done countless times when I was younger, and literally as she's, paying the bill herself phone rings and it's my cousin Evan who was in New York and when she talks usually has the fund on speaker found. So I heard him, he goes nanny. What are you doing at carapace owes Shaped literally just paid for pizza, I'm so very small bill and- and he goes,
why are you there? That's not that's a non commercial restaurant. You shouldn't be eating there and I guess I should bring up, might Michael ends, are observant jewish, observing Jews and the family is jewish, but I am not orthodox. So I wouldn't that non kosher. Restaurants and growing up. My grandmother did as well, so we had just had pizza and he was really slow. Putting her very openly about why she was at that restaurant in the first place that raised in alarm. For a few reasons, one I thought: why is he monitoring where she's eating she's a grown woman? You can eat wherever she wants, but too I realized here. He is sitting at his job in New York City and he has clearly some sort of spending alert on her credit card and every time she makes a purchase, whether it be at sea VS for some lotion or a pizza across the street. He is seeing what she's?
eyeing when and where and is calling her in real time to question her, and so that was the being An aim of me realising that this wasn't in normal fiduciary relationship that she had with my cousin Beverly show Augustine, grandsons, Evan, an obvious schoenstein we're early in their careers at Morgan, Stanley and managing their grandmothers. Account common situation that family members man each other's money through good question. I had never heard of it, but since I have heard that it, when it is it's not illegal, I dont know if its common, but it is not. Uncommon families that have a large amount of wealth, sometimes trust. Other family members to handle that amount of money and then-
That also gives the family member that that's the broker. You know a significant advantage in that they have a very lucrative job there in charge of a lot of money. They can work at a big bang. And I guess, if you completely trust that family member than it could be a win win situation this, What Beverly shortens dean had hoped for one gene rested her grand sons with her account an account more than eighty million dollars, I'm Phoebe Judge since criminal. A few years after Beverly, decided to leave Ohio and move into a condom in Florida person Bobby Now these father moved into a in the same building one floor below her, and so this gave them
extreme proximity and the ability to be very much involved in her life on a constant daily basis because they were always there. They literally how to cater her back door and would come and freely unannounced at any time, and they see just always be a presence. So I started to say that had become quite reliant on them, and they will pretty much always around in two thousand fourteen one Beverly was eighty seven Evan told that. He and avi we're leaving Morgan Stanley and accepting Bob's Jp Morgan. They were taken. Account with them. She remembers that they said waved their commissions and fees the labour members feeling that her grandson, didn't really want to go into detail with her about her account. She said
she'd call and see what's going on boys and should be told they were too busy to talk. I never got a decent answer problem again, but I let it go recorded. Everything seems to be running out a couple of years later in those in sixteen when she was ninety Beverly Phelan Broker hip wasn't say for her to be alone in the condo after that, anyone named on Henry began to care for her.
Dont Henry remembers one day when Beverly got a call from her banks, fraud department, I used to come in seven evermore morning, I'm never late and when I came in Beverly said to me telephone rang, six. Thirty from the Fraud Department Chase Department for Department Department, I said they'll they'll call back there the problem they did call back and the chairs apartments said to Beverly that if she authorize a wire transfer to Israel, Beverly said no. I don't know anything about that, and you know they act Beverly certain questions,
Who did they said that they had no idea? You know her grandson, who was ebon staking ever finance came upstairs. I dont know how he knew about it. I was having Beverly in the bedroom veterinary ready. Dr Annie came up and shouting at her. Don't talk to anyone, beer tell them. You have a financial adviser, then, after that you live with Beverly. She did have any clothes morality of our population say around, except that family downstairs body and in the way, the anything they said to her. It's like dont Henry remembers that Bobby once came. Beverly cheque Book and left Beverly. Two hundred dollars on her kitchen table to get through the weak,
until she had by groceries for Beverly with their own money dogs aspect we told her stories about other things that it happened over the years we were having breakfast on the table, and you said I want to say something to you dawn I. So what is it she said? Do not want to discuss something with you, my grandson I ve told me that I'm gonna have a lawyer come up and talk to you about your will. He said we did all the talking and the lawyer was right in writing: He did not know it was the wheel. That's what you said to me and then just to tell me about her jewellery and she said you know, My son went in the bank with ebon and took out all of my jury. I said what and she said yes Beverly heresy.
Deposit box at the bank, where she says she kept her valuables she told her. She remembers when she first open to safety, deposit box, speck in Ohio how the woman working at the bank suggested. She give a second key to some one else. Just in case k, something ever happened to me something someone I can trust was right there at the bank at that time, so I told them well. This is my son of a Robert. You think it would be ok for him. She said tat the size of its very good tat is done. I mean you know how it is when she moved to Florida till she keys Bobby you new key to the new safety deposit Box. He had the key again now. I want to tell you something but ends up that I don't have a piece of your real live. I were, I was floored. I
is, I don't believe it, including your wedding ring? I am wondering what life that was bar mitzvah, I gather ring I the moist scar, seven cowards. It was magnificent, beautiful, beautiful, green eyed. I never was diplomatic Margaret to flash here, maybe, but, as the garments of my husband gave me that rain Doin me says it is Beverly opened up to her. She realised that the rest of the family might not know what was going on one day whenever in Bobby showed up with a paper shredder dawned Henry called. Release granddaughter Cathy shot and steam at twenty eight ten and the following eighteen dawn called me at home in New Jersey and told me She was really concerned because she said that my cousin ebon and his father,
had come into my grandmother's apartment animal shredding all of her document of for bank statements we'll be right. Back support for criminal comes from zip recruiter. Zipper There's technology finds qualified candidates, fear open roles and proactively present. To you. You can easily review recommended candidates and invite your top choices to apply for your job, which encourages them to apply fast, Is it because technology so effective that forty five players who post on the procurator, get equality candid candidate within the first day, and right now you can try it recruited for free, this exclusive web address zip, recruiter, dot, com, slash criminal, that's zip, recruiter, dot com! Slash!
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No, why that December Cathy went to order to visit her grandmother along with other family members when they were there. A Fedex package, arrived D killing a large investment Beverly had made to a fine. Then the Cayman Islands and my cousin Alexis send my grandmother. What is this And my grandmother had no idea, so she opened up the package and it turned out that my grandmother had committed five million dollars to this private equity funds that was based out of the Cayman Islands, so Alexis started asking my grandmother. Didn't do you know about it? some five million hours seems like a lot of money. What is this fun and my group I had no idea what that fund was banned in there. More documents that supposedly my grandmother had signed. Her name on it, saying that she was committing five million dollars in her nine these two this multi year. I think it was five or ten years.
The Cayman Islands, so a lack says then reached out to me and she does This is very suspicious for signature is supposedly on it and she sang she never signed this document, you when he found out that that The grand sons were not doing what they should have been doing and were using you in your money. How did you May I imagine this must be incredibly complicated as a grandmother this. These aren't people, you don't know this. Is your own blood arrive? There were very debt forego. The thing is, without my knowledge head any work. They had my bag
now I gave them. It turned out. My grandmother had a full online banking poured all the problem is my grandmother, wouldn't know how to turn on a computer. If you put one in front of her, so she had no idea how to access that or what any online statements when even mean Evan when put land paperless. They statement though I should know what's going on my Evan had created a fictitious email account and my grandmother's name: Bev DOT, shot Steen I think it was a wild dot com and he had Tal time been sending all for bank statement to this fictitious email address that he had created that my grandmother never knew about never saw, and that was why she wasn't receiving her statements and The training he was doing was all through her online colonel. So, all of a sudden and the family became aware that some serious
crimes warm for being committed as we started. Looking the crimes just escalated from there is unbelievable Beverly. And keeping a journal. The first thing she wrote was, I don't to hurt anyone, but I must express my feelings and how I am being used. On Halloween of two thousand and eighteen. She wrote as of today. I say they took over a million and in November, of two thousand eight eighteen quote: then once told me he could forge my name beautifully. She writes about feeling tricked at one point. She writes What else is going on at? First, all she wanted to do was send
We move on money away from my cousins and from J P Morgan, because that's where they were working and so all she did was she wrote a hand written I to sentence letter, and it just says. Please cease all activity, all trading on my account and I'll. Send you further instructions. Later all she wanted to do is take her money away. It ended up creating causing, I should say, a soon army, because my cousins, as soon as they were saved that letter, which was scan to them by the local Jamie Morgan Chase Bank across the story. Because again my grandmother doesn't have a computer, so she wrote it by hand and then the branch of the bank stand it to them at work.
One of them on my cousin avi, was actually there was vacationing with his wife and child one formula, my grandmother with his parents and barged into her apartment with his family and started screaming at her. Why did you send that? There's nothing wrong with your cow they're going to start investigating us and it escalated very quickly, because my grandmother then was extreme amount of stress, because the family, instead of just saying okay nanny, do whatever you want with your money. We're sorry if we might have done something wrong, which is what we expected took an extremely aggressive stance and started questioning her own sanity I would you be doing this. You must be being influenced by other members of the family. There's something wrong with you: perhaps you have dementia and they asked belated things by going to their employer J, P, Morgan and saying that my grandmother was under influenced by other family members
we were exploiting her and there was no reason to move her money away, that there's something wrong with her memory and she very possibly has dementia. What ended up happening is my uncle Bobby. Evan and obvious Father a day or two later came in with screaming at her, and she was crying and screaming as well was terrible and made her right retraction letter to J P Morgan, saying I was I used my granddaughter Alexis made me concern. My town, but there actually was nothing wrong and everything's. Fine John Henry was that Beverly Department that day she remembers Bobby telling Beverly what he wanted her to write that, accusations are false and I gotta
set for no reason here, stone that there are good boy. They didn't do anything wrong. Beverly came up shouting and family in the long run. Going to do it and Bobby shove. Her, and I tell her something until this day once in a while that shoulder actor I had to take Beverly to the doctor. I told the doctor what happened, Then because she could not move our shoulder. They behave very bad. Very bad Beverly did write the letter, and Bobby had that letter sent immediately to P Morgan and J P Morgan Dead was they fro, my grandmother out of her own account, so she physically not move any of her money away. While they support
possibly investigated her for being under some sort of exploitation, not by evident avi or by the bank, but by other family members, who were telling her that she should leave her money away what what happened next? What did your grandmother do? Well, she started getting very concerned when J P more again chose to listen to evident avi an froze, my grandmother out of her account. So she physically could not move her money. She could not do anything with her money at that time. She had no choice but to hire a boy earth because she needed access to her
money. The lawyers and outside financial advisers started pouring through her. Her account records that she had not been receiving and saw all this rampant and unchecked unauthorized trading. They use a word. In the banking and tree? I had never heard this before. I know it now called churning where you're moving funds excessively constantly and you'd. You buy and sell constantly, and you do one of the reasons why one would turn someone's account as you get commission. So every time you buy and sell you get a chunk of money and my cousins, it turned out, had been doing that constantly. With my grandma this account and they were then generating millions of dollars for both Jpmorgan and themselves. My grandmother had now we're signed off on any of that trading, but it turned out that J P Morgan for most of that trading had it register. That my grandmother had physically cod in the bank and said I want you to buy this. I want you to sell this. That had never happened, my grandmother
I remember one of them at the time was worldwide. Wrestling was being bought and sold. My grandmother, had no idea what worldwide rustling was. Thus, this is just one example of hundreds, maybe even thousand but they're saying that cheap. Basically called up my cousin Evan, and that I want you to buy worldwide wrestling and then a month or two later said, I want you to sell worldwide wrestling for x amount of dollars. Clearly, it turned out that that had never happened in her journal. Beverly describes instances over the years in which evident avi tat asked her to sign things like real estate documents. She wrote that she was unhappy with it, but she didn't say any She is the same phrase a couple of times. I said nothing, but then she changed her mind She says she was losing her hair from stress she says she thought this is ridiculous. This has to stop at ninety three years old. She formerly accused
P Morgan securities and her grandsons a violating their fiduciary duties of fraudulent? On thrice trading and of elder abuse. It turned out that the reason they even had jobs. A J p Morgan was because they were controlling a very large portfolio of my grandmother's, and that was roughly eighty percent of the entire brokerage accounts they had ever could So my grant the reason they were important today Morgan was very simple. They were important because they control of my grandmother's money, and that was a very large account. They weren't controlling much of anything else, so when they lost that very large account making up eighty percent of their whole portfolio. They ended up losing their jobs, dont Henry remembers that Beverly son, Bobby, evident are these father, who lived one or below began to wait forever
in the common areas of the building, and she says once even grabbed his mother's Walker. Every time we come in Bobby is there I rang and higher than in the wall got you on a journey. Beverly could fall, Jeanne Olenin onto the walk on Bobby shaking their walk. My boy didn't do anything there. Good boy, came up in the elevator with on as they are not caught it in. I said if you think your comments, you're not coming in all guy, I pushed the lobby, I went back up he brought them there's I call the lawyer and abandon their road their lawyer of letters about the arrangement that there were doing to us a lot of harassment, according to Kathy Schottenstein,
There was a moment in which avi in his toddler son, whereby the pool and Beverly was under fifth floor balcony, Cathy says he held his child up in the air and shouted to his grandmother quote Why are you letting lawyers rule your life? This is your most monetary disputes between customers in Wall Street firms are handled through, what's called fin raw arbitration, What we came to learn is if your customer of a broker being represented at one of the large banks, and you realize that there are crimes being committed. You cannot take that brokered a core. It's not that easy. What you do is you have to go through what cod syndrome
which is financial industry regulatory authority. So if you're filing a lawsuit, you file it with right, you do not file it in public court and fin raw keeps all of these trials accusations, private private. The only thing they make public is after there is an actual trial. They do make their judgment public, but that's it So what is the advantage of offend were keeping all of these claims against banks and against brokers? Private is it helps the banks that protects the bay, because then no one really knows what these banks are being accused of or what these brokers are being accused of in two. Sixteen, the New York Times reported that some eighty percent of the cases involving customer disputes are decided in favor of Wall Street. Banks Bobby shortens Dean, wrote a letter to his mother trying to convince her to drop her complaint. He wrote
This situation does not have to be dragged out to the long haul bitter end and. My sons are not criminals. In that same letter, he wrote I Sorry for all the pain I caused you with the loss of the jewelry. I've got it. Often bad business deals that made me mixed up in October of twenty twenty, The were. Hearings began on zoom because of covert nineteen, but Beverly didn't have a computer, so she had to rent one and hire someone to help her get it set up and online. One of her attorneys submitted a document. In which he wrote the facts in this case or the worst that I've seen in the twenty eight years. But I've been representing claimants and securities Arbitration Proceedings Evan shot unseen while employment. P Morgan securities grossly financially
This is own grandmother for his own profit and for the profit of J, P Morgan securities, Beverly attorneys argued that Evan and AVI had marked more than five hundred transactions as being at Beverly, explicit, request, Beverly said she didn't know anything about any of them. Ever navvies lawyer, but that their grandmothers money was quote invested in full accordance with her wishes for them. Art Jp Morgan claimed that they had quote no place. In this family soap, opera, but the arbitrary, in process revealed that Jp Morgan, new, early two thousand fifteen- that's something might be off. A manager testified that Jp Morgan then prevented Evan from making certain kinds of purchases and plan to pay me
more attention to Beverly account. The manager testified that the bank He wanted to speak with her on the telephone. Every six months. Beverly says they called me Ultimately, my cousins were found live on every single cow that was against them. They were found guilty of constructive fraud. There, found liable of abusive fiduciary duty, fraudulent misrepresent patients and omissions, but the largest cow that they were found liable forest. Ap Morgan and my cousin Evan found liable for elder abuse and then order and that J, P Morgan and my cousins evident avi and told total had to pay my grandma back nineteen million dollars for the crimes that they had committed the brother. Haven't, said much one of their attorneys sudden, a statement that they were deeply disappointed by the result
their father Bobby, shot unseen, released a statement in which he said that he His wife were saddened and disappointed by the lies, advanced about us and our sons March of twenty twenty one Evan enough While the motion to try to vacate the fin ruling against them shortly after Evan was barred from acting as a broker According to Cathy shot Einstein, her cousins have still not paid the money they owe their grandmother, but I think the important thing is for my grandmother. This was never ever about the money. This was a bow and the end, reclaiming her dignity and herself respect and just taking a stand for what had become obvious outdoors
it's an harassment really what she is is a woman who had just can just turn. Ninety five, a week ago and ninety five year old woman who stood up to the biggest bank in the world and to two of her own Graham sons and said enough is enough in one, You pearl said throughout this whole ordeal that there nothing she wouldn't have given to her children or her grandchildren. If they just come to her and asked I had a grandma activities, wait outlining that now I like that
wait I'll, let you ve got a grandma, thereby day that Burma is more like a scarf around. When I get adored her and she would choose to make cookies, I used to go in there and to re grandma, always work precious little things. I always do what the binding brag Grandpa too. Like grandma, was really something to me. Then the way I wanted to be as a grandmother and that's the way I think I was- I love the brain kids I always brought them give. I always thought him a little something that I know that that's what they wanted, the way it should they would Grandma's lad all right. But you know that they look forward to say once in awhile, while I get on bank around, but the way a family should be fresh. Maybe it's changed since then, but that at that
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Transcript generated on 2021-10-19.