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SEC defendant Schottenstein sentenced to one year

2023-03-22 20:38 ET - Street Wire

Also Street Wire (C-APHA) Aphria Inc

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by Mike Caswell

A Boston judge has imposed a one-year jail term on David Schottenstein, the Florida man who was behind an insider trading scheme that prosecutors described as "manifestly criminal." He solicited tips from his cousin, who was an insider at Canadian Securities Exchange listing Green Growth Brands Ltd., using those tips as part of a $4-million scheme. (All figures are in U.S. dollars.) Among other things, he and his associates learned of a takeover bid for Toronto's Aphria Inc. ahead of time, the government said.

Mr. Schottenstein received his sentence in an appearance on Tuesday, March 21, before a federal judge. In addition to the year in jail, the judge ordered Mr. Schottenstein to serve five years of supervised release. During that supervised release, he must perform 30 hours of community service each week.

The sentence falls considerably short of the four years in prison that prosecutors had sought. They said that Mr. Schottenstein's crime was one that arose entirely from greed. He is relatively well off, being worth tens of millions of dollars at the age of 39, and comes from a family that controls or has large holdings in many companies, including Albertsons, American Eagle Outfitters, Designer Shoe Warehouse and Green Growth Brands. The government said that Mr. Schottenstein deliberately sought out and obtained inside information from his cousin, who was an insider at several companies.

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