Aphria

Mar 21, 2023

Author of the article: Article content BOSTON — A member of a wealthy family that has held investments and leadership roles in retailers like DSW owner Designer Brands Inc and American Eagle Outfitters Inc was sentenced on Tuesday to a year in prison for insider trading. We apologize, but this video has failed to load. Try refreshing your browser, or Relative of wealthy US retail family gets prison for insider trading Back to video Prosecutors had urged U.S. District Judge Douglas Woodlock in Boston to sentence David Schottenstein to nearly four years in prison, saying he and two friends made $4.5 million trading on inside information he gleaned from members of his family. Financial Post Top Stories Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc. Email Address Sign Up By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails or any newsletter. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300 Thanks for signing up! A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Financial Post Top Stories will soon be in your inbox. We encountered an issue signing you up. Please try again Article content Schottenstein originally agreed to cooperate and testify against those friends, Kris Bortnovsky and Ryan Shapiro. But he backed out of his cooperation deal in November, leading prosecutors to drop the charges against them. Advertisement 2 THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on Enjoy insights and behind-the-scenes analysis from our award-winning journalists Support local journalists and the next generation of journalists Daily puzzles including the New York Times Crossword SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account Get exclusive access to the National Post ePaper, an electronic replica of the print edition that you can share, download and comment on Enjoy insights and behind-the-scenes analysis from our award-winning journalists Support local journalists and the next generation of journalists Daily puzzles including the New York Times Crossword REGISTER TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Article content His lawyers contended he had no choice but to stop cooperating after anxiety made him suicidal and argued home confinement would be sufficient punishment after he pleaded guilty last year to conspiring to commit securities fraud. Prosecutors said Schottenstein made more than $600,000 trading in 2017 and 2018 on information he gleaned from a relative about merger and earnings announcements involving DSW, now called Designer Brands; Aphria Inc; and Rite Aid Corp . Prosecutors said he traded ahead of a 2017 DSW earnings announcement; on news about a 2018 merger agreement between Albertsons and Rite Aid that they later terminated; and a 2018 bid by Green Growth Brands for Aphria Inc, which failed. He learned that information from a second cousin, Joey Schottenstein, who sat on the board of Designer Brands and Green Growth Brands. His father is Jay Schottenstein, Designer Brands’ executive chairman and American Eagle’s chief executive. Advertisement 3