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United States of America v. David Schottenstein
Case Number: 1:22-cr-10005
Judge: Douglas P. Woodlock
Court: United States District Court for the District of Massachusetts (Suffolk County)
Plaintiff's Attorney: United States Attorney’s Office in Boston
Description: Boston, Massachusetts criminal defense lawyer represented Defendant charged with engaging in an insider trading scheme that generated more than $4.5 million in profits.
Between August 2017 and May 2019, David Schottenstein, age 39, of Surfside, Florida, obtained material nonpublic information (MNPI) from members of his own family—who are major shareholders or directors of several publicly traded companies—regarding the earnings results and merger-and-acquisition activity of those companies. According to court documents, Schottenstein traded on that information and provided it to two of his friends—one of whom controlled a hedge fund in which Schottenstein was an investor—who also traded on it. The publicly traded companies in which Schottenstein and his co-conspirators traded included Aphria, Inc., DSW, Inc. and Rite Aid Corp., among others. Through this scheme, Schottenstein and his alleged co-conspirators netted at least $4.5 million.
United States Attorney Rachael S. Rollins and Wayne A. Jacobs, Special Agent in Charge of the Federal Bureau of Investigation’s Criminal/Cyber Division, Washington Field Office, made the announcement today. The Securities & Exchange Commission and the Federal Bureau of Investigation, Miami Field Office provided valuable assistance. Assistant U.S. Attorneys Stephen E. Frank and Seth B. Kosto – Chief and Deputy Chief, respectively, of Rollins’ Securities, Financial & Cyber Fraud Unit – prosecuted the case.
Outcome: Defendant was sentenced to one year and one day in prison and five years of supervised release.