Morgan Stanley Lawsuits Seek $5 Million for Fraud Losses
According to an article in Financial Advisor IQ , the regulator has barred financial advisor Darryl Cohen, of Morgan Stanley, after allegations of stealing money from his professional athlete clients.
Cohen reportedly worked for the Global Sports Entertainment Group at Morgan Stanley, according to the article. The Financial Industry Regulatory Authority (FINRA) was investigating the possible conversion and improper use of customer funds after several customer lawsuits were filed against Morgan Stanley alleging that Cohen mismanaged their accounts and was selling away securities not approved by the firm through third-party loans, according to public documents on FINRA’s website.
Morgan Stanley reportedly fired Cohen in March 2021 over allegations related to his “outside client business and transactions not disclosed to or approved by Morgan Stanley and use of an unapproved platform to engage in inappropriate communications with clients,” according to his FINRA broker profile.
According to the article, two former NBA players, Chandler Parsons and Courtney Lee are suing Morgan Stanley over allegations that payments were made without the approval from their accounts between 2017 and 2019.
The two athletes alleged that they were persuaded to get a liquidity access line of credit for real estate and life insurance policies, according to the lawsuit. The athletes are allegedly seeking $5 million in damages, according to the article.
According to FINRA, the regulator ruled that Cohen should be barred on February 16 if no further action is taken after his alleged refusal to provide information requested by FINRA.
Cohen reportedly has nine customer complaints on his broker record, with four still pending. Allegations include misrepresentation, making payments without prior approval, unsuitability among others, according to FINRA.
According to his FINRA BrokerCheck profile, Darryl Cohen was affiliated with the following firms, during his career in the securities industry:
06/05/2015 – 04/08/2021, MORGAN STANLEY (CRD#:149777), WESTLAKE VILLAGE, CA,
05/16/2003 – 06/08/2015, WELLS FARGO ADVISORS, LLC (CRD#:19616), WESTLAKE VILLAGE, CA
02/28/1997 – 05/05/2003, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#:7691), NEW YORK, NY
Potential Lawsuits to Recover Financial Losses
The White Law Group is investigating potential securities claims involving Darryl Cohen and the liability his employers may have for failure to properly supervise him.
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.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
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. For a free consultation with an attorney, please call (888) 637-5510.
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 and Seattle Washington. For more information, please visit our website, www.whitesecuritieslaw.com.
Tags: Darryl Cohen CA, Darryl Cohen Global Sports Entertainment Group, Darryl Cohen investigation, Darryl Cohen investment losses, Darryl Cohen lawsuit, Darryl Cohen litigation, Darryl Cohen Morgan Stanley, Darryl Cohen West Lake Village Last modified: November 30, 2022