Morgan Stanley Hit with $5 Million FINRA Lawsuit 

Pro Basketball Player Files Suit against Morgan Stanley

Professional basketball player Chandler Parsons is filing suit against Morgan Stanley Wealth Management for $5 Million in damages, according to Advisor Hub on February 23, citing regulatory records. 

Parsons, who played for the Atlanta Hawks before a car accident in January 2020, reportedly filed the claim in arbitration with the Financial Industry Regulatory Authority (FINRA) in January 2021, according to the regulator. Parson’s broker Darryl M. Cohen was reportedly not named as a respondent in the complaint, but  must still be listed on his record because he is the customer’s broker under FINRA rules, according to Advisor Hub.

Aside from Parsons and related entities, his one-time roommate and fellow National Basketball Association player Courtney Lee was listed as a claimant in the suit. According to the allegations between 2017 and 2019 “payments were made without prior approval” from their accounts. They also claimed that they were encouraged to take out a Liquidity Access Line for real estate and life insurance policies for which they reportedly claim they now hold no interest.

According to his broker profile, Cohen has been affiliated with Morgan Stanley in Westlake Village, CA since 2015. Prior to that he was with Wells Fargo Advisors for 12 years. Cohen has 6 customer complaints on his broker record during his career in the securities industry, with two still pending. Allegations include “unsuitability with respect to the use of Liquidity Access Line to loan funds to outside business entities,” and unauthorized trading, among others. 

Filing a Complaint against your Brokerage Firm

Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.

When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

If you are concerned about investments with Darryl Cohen and Morgan Stanley, the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation, or visit us on the web at www.whitesecuritieslaw.com.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois.