INVESTORS: Former Morgan Stanley broker Darryl Cohen is facing multiple pending customer disputes alleging misrepresentation.
Darryl Cohen (CRD#: 2786613) was registered as a broker with Morgan Stanley from 2015 until 2021. Previously, Cohen was registered as a broker with Wells Fargo from 2003 until 2015. Cohen is facing a bar from the financial industry by FINRA stemming from customer disputes from his former professional athlete clients, including Chandler Parsons.
Cohen has 11 disclosures on his BrokerCheck report. One customer dispute was denied and one was closed with no action taken.
December 2021 Regulatory Judgment
Status: Pending
Initiated By: FINRA
Allegations: This is an expedited proceeding concerning the failure of Respondent Darryl Matthew Cohen to respond fully and completely to multiple FINRA Rule 8210 requests seeking documents and information. FINRA sought the documents and information in connection with an investigation into possible conversion and improper use of customer funds.
Resolution: Extended Hearing Panel decision rendered December 30, 2021 wherein Cohen was barred from association with any FINRA member in all capacities and ordered to pay FINRA hearing costs of $2,039.08. The sanction was based on findings that Cohen failed to respond fully and completely to FINRA requests seeking documents and information in connection with an investigation into possible conversion and improper use of customer funds. The findings stated that some of Cohen’s customers at his member firm filed arbitration claims against the firm, alleging, among other things, that Cohen had mismanaged their accounts and engaged in selling away through the facilitation of loans to third parties. Those claims prompted FINRA to commence the investigation. Subsequently, additional customers whose accounts had been serviced by Cohen filed claims. Most of the complaining customers were current and former professional athletes. FINRA staff had concerns about unusual or suspicious money movement. Initially Cohen provided some, but not all, of the documents and information requested by FINRA. However, Cohen did not produce three categories of requested documents that were critical to FINRA’s investigation: communications regarding his customers and business, including electronic communications such as emails, texts, and social media posting; bank account statements; and telephone logs and records. Cohen’s failure to respond fully and completely to FINRA’s requests stymied an investigation into very serious potential misconduct. If no further action is taken the decision will become final February 16, 2022.
October 2021 Customer Dispute
Status: Pending
Allegations: Claimants allege, inter alia, that payments were made without prior approval from their accounts and in 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. 2017-2019.
Damage Amount Requested: $2,000,000.00
April 2021 Customer Dispute
Status: Pending
Allegations: Claimants allege, inter alia, misrepresentation with respect to recommendation for outside business investment utilizing a line of credit from the firm- June 2019
Damage Amount Requested: $100,000.00
April 2021 Customer Dispute
Status: Pending
Allegations: Claimants allege, inter alia, unsuitability with respect to investments and Credit line – 2015 through 2020.
Damage Amount Requested: 2,300,000.00
March 2021 Employment Separation After Allegations
Firm Name: Morgan Stanley Smith Barney, LLC
Termination Type: Discharged
Allegations: Allegations relating to the representative’s facilitation of outside client business and transactions not disclosed to or approved by Morgan Stanley and use of an unapproved platform to engage in inappropriate communications with clients.
January 2021 Customer Dispute
Status: Pending
Allegations: Claimants allege, inter alia, that 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. 2017-2019
Damage Amount Requested: $5,000,000.00
June 2020 Customer Dispute
Status: Settled
Allegations: Claimant alleged unsuitability with respect to Liquidity Access Line to loan fund to outside business entities.
Settlement Amount: $125,000.00
April 2010 Customer Dispute
Status: Settled
Allegations: Customer alleged that an unauthorized journal transfer from his account was made to another customer of the registered representative. (5/30/2008)
Damage Amount Requested: $10,000.00
Settlement Amount: $16,500.00
November 2001 Customer Dispute
Status: Award / Judgment
Allegations: Customers allege unsuitable and unauthorized trading in their accounts.
Damage Amount Requested: $96,000.00
Settlement Amount: $81,851.00
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The Sonn Law Group is currently investigating allegations surrounding Darryl Cohen. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.
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