(Reuters) – The founder of a designer eyewear company whose family has had investments and leading roles in many major retailers, including DSW Inc., has agreed to plead guilty to insider trading with two Florida men through to use information he learned from a cousin.
Federal prosecutors in Boston revealed in court papers on Thursday that David Schottenstein had agreed to plead guilty to conspiracy to commit securities fraud and to co-operate in the prosecution of a venture capitalist and an entrepreneur.
Mr. Schottenstein, who founded the designer sunglasses company Privè Revaux, said in a statement by defense attorney Eric Rosen that he "took full and sole responsibility for my conduct and deeply regrets my actions."
Prosecutors said Schottenstein acted with information he found out. from a cousin who sat on the boards of the shoe retailer DSW and the cannabis product company Green Growth Brands.
Mr. Schottenstein was traded ahead of a 201
The cousin's family business belonged to an investment consortium involved in the Rite Aid deal, which later failed.
Schottenstein earned more than $ 600,000, the U.S. Securities and Exchange Commission said in a related lawsuit. JPay – to the expected news. They were first prosecuted last month and formally prosecuted on Thursday.
DSW is now called Designer Brands Inc. Its CEO is Mr. Schottenstein's first cousin once deposed, Jay Schottenstein, who is also the CEO of American Eagle Outfitters Inc.
None of the companies responded to requests for comment.