SEC Charges Former Investment Adviser with Misappropriating Millions from NBA Players

The Securities and Exchange Commission (SEC) has charged Darryl Matthew Cohen, a former investment adviser at a large financial institution, with misappropriation of more than $1 million from three current and former NBA players over the course of two and a half years. Between October 2017 and April 2020, Cohen allegedly diverted client funds without authorization to pay for personal expenses such as his son’s amateur basketball program, home gym equipment, and used life insurance settlements to fund his own home improvements. The SEC is now seeking permanent injunctive relief, disgorgement of profits, prejudgment interest, and issuance of a civil penalty. The U.S. Attorney’s Office for the Southern District of New York announced similar criminal charges against Cohen and the SEC is conducting an investigation with assistance from the Financial Industry Regulatory Authority.