A member of a wealthy family that has held investments and leadership roles in retailers like DSW owner Designer Brands Inc (DBI.N) and American Eagle Outfitters Inc was sentenced on Tuesday to a year in prison for insider trading.
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.
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.
Source: Relative of wealthy US retail family gets prison for insider trading | Reuters
