David Schottenstein to plead guilty
Member of famous family part of insider trading scheme; faces prison
A member of the Schottenstein family has agreed to plead guilty in federal court in Boston as part of a multimillion-dollar insider trading scheme that netted him more than $600,000 in profit, according to federal documents.
David Schottenstein, 38, of Surfside, Florida, faces a prison sentence of up to 20 years when he pleads guilty to a charge of conspiracy to commit securities fraud, though federal prosecutors likely will recommend a sentence less than that.
He also will have to forfeit his gains of $634,893.
“I take full and sole responsibility for my conduct and deeply regret my actions. I apologize to my family, friends and colleagues,” Schottenstein said in a statement issued through his attorney,
Eric Rosen.
Schottenstein is a serial retail entrepreneur whose grandfather was one of four founding brothers of the company that spun off Designer Brands and American Eagle.
He is a founder of the eyewear company Prive Revaux and the men’s custom suit company Astor & Black. His other projects include Columbus-based No Surprises Software, which sells a cloud-based legal-billing system, and
Swiss Stays, a company that sells adjustable collar stays.
Schottenstein is accused of obtaining inside information and using that to trade around market-moving announcements in 2017 and ‘18 involving companies that included DSW (now known as Designer Brands), drug store company Rite Aid and Canadian cannabis-related business Aphria.