Financial Advisor Charged by SEC for Stealing $1 Million From NBA Players

Financial Advisor, Securities and Exchange Commission, NBA players, Federal Bureau of Investigation
Financial Advisor, Securities and Exchange Commission, NBA players, Federal Bureau of Investigation report

Dated March 23, 2023, in Washington, DC:

A detailed view of Financial Advisor charges

Darryl Matthew Cohen, a former investment financial adviser at a major financial institution, was accused by the Securities and Exchange Commission (SEC) of embezzling more than $1 million from three active and retired NBA players over the course of two and a half years.

The SEC says that between October 2017 and April 2020, Cohen used client money for things like paying for his son’s amateur basketball team, buying equipment for a home gym, and paying back another customer whose money he had stolen. Cohen allegedly used client payments from the sale of life insurance settlements to finance the renovation of his own home.

Andrew Dean, co-head of the Asset Management Unit, said, “As the complaint shows, Cohen did not look out for his customers’ best interests. Instead, he used their trust to make money for himself.”The SEC’s first concern is preventing investors from being defrauded by their financial advisors.

Cohen is being sued by the SEC in the U.S. Judges for New York’s Southern District. The SEC says Cohen broke the federal securities laws that protect investors from fraud. Along with a civil penalty, the case asks for a court order that will last forever. Cohen has also been hit with criminal charges by the U.S. Attorney’s Office for the Southern District of New York, which were disclosed today.

The investigation is being done by Payam Danialypour, Manuel Vazquez, and Brent Wilner, who are all part of the SEC‘s Asset Management Unit. Gary Leung of the Los Angeles Regional Office will be in charge of supervising the litigation led by Stephen Kam. The Securities and Exchange Commission is grateful to the Federal Bureau of Investigation and the Financial Industry Regulatory Authority for their help.


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