Morgan Stanley Broker Darryl Cohen Accused of Selling Away
Posted on Monday, March 1st, 2021 at 7:54 pm
Erez Law is currently investigating Morgan Stanley brokers Darryl Cohen (CRD# 2786613) and Marc Cohen (CRD# 50025) regarding non-broker dealer product investment losses. The brokers are part of the Global Sports Entertainment Group at Morgan Stanley, which focuses on athletes and entertainers who are likely to have short-lived income streams. Cohen has been registered with Morgan Stanley in Westlake Village, California since 2015.
According to public records, two former NBA players, Chandler Parsons and one-time roommate Courtney Lee, are suing Morgan Stanle and seeking $5 million in damages. According to the claim, “payments were made without prior approval” from their accounts between 2017 and 2019. The claim also alleges that the NBA players were encouraged to take out a liquidity access line of credit for real estate and life insurance policies, which they now claim they hold no interest.
Cohen has been the subject of six customer complaints between 2001 and 2021, one of which was denied and one was closed without action, according to his CRD report. Recent complaints are regarding:
January 2021. “Claimants allege, inter alia, that payments were made without prior approval from their accounts and that they were encouraged to use a Liquidity Access Line for real estate and life insurance policies for which they now claim they hold no interest. 2017-2019.” The customer is seeking $5,000,000 in damages and the case is currently pending. The complaint is regarding non-broker dealer activity with two NBA players.
May 2020. “Claimant alleged unsuitability with respect to the use of Liquidity Access Line to loan funds to outside business entities. 2015 – 2020.” The customer case is currently pending. The complaint is regarding non-broker affiliate product.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Morgan Stanley may be liable for investment or other losses suffered by Cohen’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.