Updated on: March 9, 2024
If you have investment losses due the actions of Broker Darryl Cohen, contact the investment loss attorneys at KlaymanToskes today at +1 (888) 997-9956 or request a free case evaluation to determine if you are eligible for recovery.
National investment loss lawyers KlaymanToskes is investigating broker Darryl Cohen (CRD# 2786613) of Morgan Stanley, following the filing of a customer complaint with the Financial Industry Regulatory Authority (“FINRA”), alleging up to $1,000,000 in investor damages, in connection with a $13 million scheme to defraud professional athletes. Cohen was arrested in March 2023, along with his co-defendants, Brian Gilder, Charles Briscoe, and Calvin Darden, Jr., and charged with defrauding at least four professional men’s basketball players.
The claim filed by KlaymanToskes alleges that when Cohen left his prior firm (Wells Fargo) to join Morgan Stanley, he failed to follow the terms of his agreement with his customer, and opened a line of credit in her name, using her brokerage account as collateral. The customer repeatedly asked Cohen to remove her name from the line of credit and was advised that he would do so. Withdrawals were then made from the line of credit by Cohen and her husband, without her knowledge.
In March 2020, as a result of the substantial decline in the securities markets, a margin call was triggered on the customer’s account. To satisfy the call, without the customer’s knowledge or consent, Morgan Stanley sold all of the customer’s mutual funds leaving her account wiped-out. Had Cohen and Morgan Stanley removed the customer’s name and account from the line of credit, the securities would not have been sold.
According to FINRA BrokerCheck, broker Darryl Cohen was previously registered with Morgan Stanley from 2015 to 2021 in Westlake Village, CA. Cohen was barred from acting as a broker by FINRA in February 2022 after he allegedly failed to cooperate with the regulator’s investigation into his misconduct. KlaymanToskes has continued their investigation of Cohen since he left the industry and has been contacted by multiple Darryl Cohen customers alleging damages.
Investors that suffered losses with broker Darryl Cohen are encouraged to contact attorney Lawrence L. Klayman, Esq., at 888-997-9956 or by email at lawrence@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
Who is Broker Darryl Cohen?
Darryl Cohen CRD# 2739167)is a previously registered broker under Morgan Stanley (2015-2021) who has 19 disclosures on FINRA. FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.
Current Investigations About Broker Darryl Cohen That You Should Know as an Investor:
KlaymanToskes is a leading national investment loss law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations.
The articles linked below contain important information relating to KlaymanToskes’ investigations of broker Darryl Cohen:
- DARRYL COHEN CUSTOMERS: KLAYMANTOSKES PURSUES $1 MILLION RECOVERY FOLLOWING COHEN’S ARREST OVER PRO-ATHLETE FRAUD SCHEME
If you suffered losses with broker Darryl Cohen, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.
The firm has helped recover over $600 million* for investors, and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.
*Exclusive of attorneys fees and costs.
Signs Investors Should Look Out For About Their Brokerage Accounts
As an investor, there are a few signs that you should look out for if you believe you may have a claim against broker Darryl Cohen. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
- You have substantial losses in your investment accounts
- You received a call, email, or other communication from your broker’s supervisor or manager regarding your portfolio
- Your broker misrepresented investment opportunities, or failed to disclose details about investments
- You notice unauthorized transactions in your investment accounts
- Your broker is not returning your calls or emails
- You filed a complaint with your brokerage firm that has not been resolved
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
According to FINRA, brokerage firms such as Morgan Stanley are responsible for the supervision of all of the activities of their registered brokers and investment advisors. Investors may be entitled to a financial recovery if their brokerage firm failed to supervise the representative managing their brokerage account, and/or if their broker/advisor made unsuitable investment recommendations.
Engaging the services of an experienced securities attorney to evaluate your specific circ*mstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you suffered losses with broker Darryl Cohen, or have concerns regarding your investment portfolio at Morgan Stanley, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation to discuss your recovery options.
