(HedgeCo.Net) The Securities and Exchange Commission has charged Darryl Matthew Cohen, a former investment adviser at a large financial institution, with misappropriating more than $1 million from three current and former NBA players over a period of two and a half years.
According to the SEC’s complaint, from October 2017 through April 2020, Cohen used client funds, without their understanding or authorization, for personal expenditures including to support his son’s amateur basketball program, for a home gym, and to pay back another client whose funds Cohen had misappropriated. Cohen also allegedly sold life insurance settlements to the clients for kickbacks to fund his home improvements.
“As the complaint alleges, instead of protecting his clients’ investments, Cohen took advantage of their trust for his personal gain,” said Andrew Dean, Co-Chief of the Asset Management Unit. “Protecting investors from fraud by their financial advisers is a priority for the SEC.”
The SEC’s complaint, filed in U.S. District Court for the Southern District of New York, charges Cohen with violating the antifraud provisions of the federal securities laws. The complaint seeks permanent injunctive relief, disgorgement and prejudgment interest, and a civil penalty. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Cohen.