The Securities and Change Fee immediately charged Darryl Matthew Cohen, a former funding adviser at a big monetary establishment, with misappropriating greater than $1 million from three present and former NBA gamers over a interval of two and a half years.
In keeping with the SEC’s grievance, from October 2017 by means of April 2020, Cohen used consumer funds, with out their understanding or authorization, for private expenditures together with to assist his son’s newbie basketball program, for a house fitness center, and to pay again one other consumer whose funds Cohen had misappropriated. Cohen additionally allegedly offered life insurance coverage settlements to the shoppers for kickbacks to fund his dwelling enhancements.
“Because the grievance alleges, as a substitute of defending his shoppers’ investments, Cohen took benefit of their belief for his private acquire,” stated Andrew Dean, Co-Chief of the Asset Administration Unit. “Defending buyers from fraud by their monetary advisers is a precedence for the SEC.”
The SEC’s grievance, filed in U.S. District Courtroom for the Southern District of New York, fees Cohen with violating the antifraud provisions of the federal securities legal guidelines. The grievance seeks everlasting injunctive reduction, disgorgement and prejudgment curiosity, and a civil penalty. In a parallel motion, the U.S. Legal professional’s Workplace for the Southern District of New York immediately introduced prison fees in opposition to Cohen.
The SEC’s ongoing investigation is being carried out by Payam Danialypour and Manuel Vazquez and supervised by Brent Wilner, the entire Asset Administration Unit. The litigation can be led by Stephen Kam and supervised by Gary Leung of the Los Angeles Regional Workplace. The SEC appreciates the help of the U.S. Legal professional’s Workplace for the Southern District of New York and the Monetary Trade Regulatory Authority.