SEC v. David Schottenstein, Kris Bortnovsky, Ryan Shapiro, Sakal Capital Management, LLC, and Sakal U.S. Fund, LLC (insider trading, 2024)

Judgment entered

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In January 2024 the Securities and Exchange Commission announced a final judgment against David Schottenstein, who it said misappropriated inside information from a cousin on a board and traded ahead of DSW, Aphria and Albertsons/Rite Aid announcements. He consented to an injunction and to $536,752.90 in disgorgement and $67,933.16 in interest, deemed satisfied by his criminal forfeiture; he was sentenced to one year and one day in prison.

The record

What was ordered

Civil penalty

—

Disgorgement

$537k

Prejudgment interest

$67.9k

Total relief

$605k

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced this matter on January 11, 2024 as release LR-25923, a District of Massachusetts case filed January 6, 2022. The judgment of January 8, 2024 is against Schottenstein only; the release does not report outcomes for the other named defendants.

The complaint alleges that Schottenstein traded on information from a cousin who sat on the boards of DSW and of the would-be acquirer of Aphria, and tipped two friends. The disgorgement is deemed satisfied by a criminal forfeiture order. He pleaded guilty in February 2022 and was sentenced in March 2023 to one year and one day, with a forfeiture of $634,893.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Insider trading — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2024-01-11 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.