SEC Charges Financial Advisor With Misappropriating More Than $1 Million From NBA Players
On March 23rd, 2023, the Securities and Exchange Commission (SEC) announced securities fraud charges against a former investment advisor Darryl Matthew Cohen (CRD#: 2786613). Mr. Cohen is accused of defrauding former NBA players out of more than $1 million. Notably, this financial advisor was barred by FINRA in December of 2021 for violation of industry regulations. In this blog post, our Miami financial advisor fraud attorney discusses the charges filed in this case and explains why professional athletes are at-risk of being targeted for investment fraud.
SEC Charges: Former Registered Investment Advisor Darryl Matthew Cohen
Darryl Matthew Cohen first registered as an investment advisor (RIA) with FINRA in 1997. During his professional career, he was associated with Merril Lynch, Wells Fargo Advisors, and Morgan Stanley. According to the complaint filed by the SEC, Mr. Cohen engaged in securities fraud between October of 2017 and April of 2020, while he was a registered representative of Morgan Stanley.
In the complaint filed in the United States District Court for the Southern District of New York, the federal agency contends that former Morgan Stanley financial advisor Darryl Matthew Cohen defrauded three former NBA players. Among other things, Mr. Cohen is accused of using his clients’ funds without their understanding or authorization.
Why Professional Athletes are At Risk of Being Targets of Investment Fraud
Professional athletes are often seen as the epitome of success, with exceptional physical abilities and true dedication to their craft. However, they are not exempt from the risk of falling victim to investment fraud. In fact, professional athletes are at a higher risk of being targeted by unscrupulous investment schemers. Here are several reasons why:
- High Earnings: Professional athletes often earn substantial amounts of money in a relatively short period of time. High earnings may attract fraudsters who seek to take advantage of their financial situation and coerce them into questionable investments.
- Public Face: Professional athletes are celebrities. They are known to the public and their salaries are public information. Unfortunately, this can make them a target of investment fraud. The high profile status of professional athletes may put them at risk.
- Trust in Advisors: Athletes commonly rely on a network of advisors, such as agents and financial planners, to manage their finances. However, these advisors can sometimes have ulterior motives and may guide athletes towards fraudulent investments for personal gain.
Suspicions of investment fraud should always be followed-up with in a proactive manner. If you believe you suffered losses because of the improper conduct of an investment advisor, a top Miami, FL investment fraud attorney can help.
Get in Touch With Our Miami Financial Advisor Fraud Attorney Today
At Carlson & Associates, P.A., we are dedicated to protecting the rights of investors. If you or your loved one is a professional athlete who was the victim of investment fraud, we are more than ready to help. Contact our securities fraud team today for a fully confidential, no obligation case review. Our firm provides securities fraud representation in Miami and throughout Southeast Florida.
Source:
sec.gov/news/press-release/2023-60