Darryl Cohen Investigation
August 2022-Westlake Village, C A
The FINRA records of Darryl Cohen, a former stock broker who was last employed in the industry by Morgan Stanley , disclose a regulatory matter, 4 pending customer disputes, 5 prior customer disputes and a termination from employment.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
FINRA records disclose that Darryl M. Cohen was permanently barred from the securities industry by FINRA in 12/2021 for allegations that he failed to respond fully and completely to multiple FINRA rule 8210 requests seeking documents and information. FIRNA sought the documents and information in connection with an investigation into possible conversion and improper use of customer funds.
In December of 2101, FINRA case #2020066797301 alleged failure by Cohen to respond fully and completely to multiple FINRA Rule 8210 requests seeking documents and information in connection with an investigation into possible conversion and improper use of customer funds and that he engaged in selling away thorough the facilitation of loans to third parties. Most of the customers affected were current and former athletes. The sanctions ordered were that Cohen was permanently barred from FINRA in all capacities.
In June of 2020, FINRA case #20-01648 filed in the state of Florida, alleged unsuitability with respect to the use of Liquidity Access Line to loan funds to outside business entities. The case settled for $125,000.
In April of 2010, a Wells Fargo Advisor client alleged that an unauthorized journal transfer from his account was made to another of Cohen’s customers. That case was settled for $16,500.
From January 2021 to October 2021, four FINRA cases were filed by Morgan Stanley Smith Barney customers alleging among other things: Morgan Stanley Smith Barney customer alleging inter alia, payments 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, misrepresentation with respect to recommendation for outside business investment utilizing a line of credit from the firm, unsuitability with respect to investments and credit line. The alleged damages are as follows:
- FINRA case#21-02498 – $2,000,000
- FINRA case #21-01033 – $100,000
- FINRA case #21-00822 – $2,300,000
- FINRA case #21-00110 – $5,000,000
These cases are still pending.
In March of 2021, Cohen was terminated from employment with Morgan Stanley Smith Barney as a result of allegations relating to his facilitation of outside client business and transactions not disclosed to or approved by Morgan Stanley Smith Barney and use of an unapproved platform to engage in inappropriate communication with clients. Cohen had been with Morgan Stanley Smith Barney since June of 2015. Before that time he had been with Wells Fargo Advisors and Merrill Lynch, Pierce, Fenner & Smith.
If you have losses in an account handled by Darryl Cohen call to learn how you may be entitled to collect damages through FINRA arbitration.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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