FINRA Bars Former Morgan Stanley Advisor Facing Millions in Claims from Pro Athletes

Posted on February 14th, 2022 at 12:00 PM
FINRA Bars Former Morgan Stanley Advisor Facing Millions in Claims from Pro Athletes

From the Desk of Jim Eccleston at Eccleston Law:

A former Morgan Stanley advisor has been barred by the Financial Industry Regulatory Authority (FINRA) after receiving numerous complaints from his former professional athlete clients, including former basketball star Chandler Parsons. 

The Southern California-based advisor, Darryl Cohen, received the bar for allegedly failing to cooperate with FINRA’s investigation into allegations of account mismanagement, according to BrokerCheck. The investigation commenced after numerous former clients of Cohen, including several current and former professional athletes, complained about selling away and “facilitation of loans to third parties,” according to FINRA. 

Cohen’s BrokerCheck report lists four pending damage claims, which constitute a total of $9.4 million. The largest claim, which is for $5 million, was filed by Parsons and another pro basketball player, Courtney Lee. The two allege that between 2017 and 2019, “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”, according to BrokerCheck.  

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, finra, morgan stanley

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