There are two ways you can make money on a hedge-fund investment. You can invest with a good manager and really get your 2 and 20’s worth. Or you can invest with your buddy and make sure that he can make money.
[David] Schottenstein told [Kris] Bortnovsky: “u never LOST due to my tips…EVER…not once.”
Those tips, alas, were allegedly of the illicit kind. At least, that’s what Schottenstein is telling prosecutors.
Mr. Schottenstein, the founder of a sunglasses retailer, passed illicit tips to his friends that he got from a cousin who is a board member of Designer Brands, the parent company of the Designer Shoe Warehouse chain…. The cousin also knew about grocery retailer Albertsons’ 2018 plan to merge with Rite Aid Corp. because his father served on Albertsons’ board of directors, according to court filings. The cousin shared the undisclosed merger plan with Mr. Schottenstein, who prosecutors say traded on the information and shared the tip with his friends….
James Froccaro, an attorney for Mr. Bortnovsky, said his client is innocent and plans to plead not guilty.
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