Darryl Cohen Facing Allegations Of Unsuitable Recommendations

FINRA reports important information about securities broker Darryl Matthew Cohen (CRD: 2786613, Westlake Village, California). Evidently, investors disputed the sales practices of the securities broker, who worked for Morgan Stanley. Additionally, the securities broker discloses a regulatory enforcement action. However, Cohen denies the allegations of sales practice violations. Read on to learn more about the allegations against Cohen.

Morgan Stanley Investor Accuses Cohen Of Unsuitable Recommendations

Notably, on March 23, 2023, a Morgan Stanley client filed FINRA Arbitration: 23-00709 about Darryl Cohen. Namely, the client alleged that Cohen made unsuitable recommendations. Because of this, the client allegedly sustained damages. Therefore, the client requested compensation from Morgan Stanley or Cohen. Evidently, this arbitration is pending a resolution.

SEC Charges Darryl Cohen With Breach Of Fiduciary Duty

Also, on March 23, 2023, SEC initiated Case: 1:23-cv-02453 against Darryl Cohen. Evidently, SEC alleged that Cohen acted unethically, breached a fiduciary duty, and misappropriated funds from NBA players. Supposedly, he moved NBA players’ funds into investments which provided Cohen a financial benefit—all without the players’ knowledge or understanding of his activities. Therefore, SEC intends to sanction Cohen.

Cohen Discloses Unauthorized Payments Allegations By Morgan Stanley Client

Also, a client of Morgan Stanley contested Darryl Cohen’s sales practices by filing FINRA Arbitration: 21-02498. Allegedly, Cohen caused payments to be made from the client’s account without the client’s authorization. It appears that Cohen possibly caused the client to sustain damages on real estate securities and life insurance policies. Therefore, Morgan Stanley opted to settle the matter on November 7, 2022, by compensating the client in the amount of $1,575,000.

Morgan Stanley Investor Accuses Darryl Cohen Of Misrepresentation

Specifically, a Morgan Stanley client filed FINRA Arbitration: 21-01033 about Darryl Cohen. Namely, the client alleged that Cohen made misrepresentations. Because of this, the client allegedly sustained damages on outside business investments. Therefore, on September 10, 2022, Morgan Stanley settled this matter by paying the client $32,000 in damages.

Cohen Discloses Unsuitable Recommendations Allegations By Morgan Stanley Client

Also, a client of Morgan Stanley contested Darryl Cohen’s sales practices by filing FINRA Arbitration: 21-00822. Allegedly, Cohen made unsuitable recommendations. It appears that Cohen possibly caused the client to sustain damages on common stocks, preferred stocks, and life insurance. Therefore, Morgan Stanley opted to settle the matter on August 10, 2022, by compensating the client in the amount of $1,700,000.

Morgan Stanley Investor Accuses Darryl Cohen Of Unauthorized Transactions

Specifically, a Morgan Stanley client filed FINRA Arbitration: 21-00110 about Darryl Cohen. Namely, the client alleged that Cohen executed unauthorized payments from the client’s account. Also, the client alleges that Cohen steered them towards using a liquidity access line to fund real estate and life insurance transactions. Because of this, the client allegedly sustained damages on life insurance policies and real estate securities. Therefore, on July 15, 2022, Morgan Stanley settled this matter by paying the client $2,500,000 in damages.

FINRA Sanctions Darryl Cohen For Failure To Provide Information

Evidently, on February 16, 2022, FINRA issued Case: 2020066797301, sanctioning Darryl Cohen for infractions. Specifically, Cohen was barred. Notably, this means that he cannot associate with FINRA-member entities as a securities broker or in other capacities. Particularly, FINRA alleged that Cohen did not provide documents and information to FINRA during its investigation into possible violations of FINRA rules, including conversion of client funds.

Morgan Stanley Disaffiliates With Cohen For Outside Business Activities

Also, on March 9, 2021, Morgan Stanley disaffiliated with Cohen. Evidently, Morgan Stanley alleged that Cohen engaged in an undisclosed outside business activity.

Damages Resulting From Morgan Stanley Securities Broker Darryl Cohen?

Did you suffer damages because of Darryl Cohen? If so, you can contact Soreide Law Group at (888) 760-6552 and speak with a securities attorney regarding a possible recovery of your investment losses. Soreide Law Group, who has effectively recovered money for hundreds of investors across the United States, represents clients on a contingency fee basis and will advance all costs. Cohen and brokerage firms Cohen worked for deny any and all allegations of sales practice violations.