A former Morgan Stanley investment adviser and three others were charged with defrauding four professional basketball players of $13 million.
(Bloomberg) — A former Morgan Stanley investment adviser and three others were charged with defrauding four professional basketball players of $13 million.
Federal prosecutors in New York on Thursday charged the former adviser, Darryl Cohen, along with a financial planner, an NBA agent and a fourth man in two schemes to cheat the players.
The US claims Cohen and the financial planner, Brian Gilder, fraudulently convinced three of the unidentified players to buy life insurance policies at huge markups. Cohen used some of the money to pay off his credit card bill and do work on his pool, according to the government.
Prosecutors also charged Charles Briscoe, an NBA agent, and Calvin Darden Jr., who was convicted of fraud in the past, in a separate scheme involving the planned sale of a women’s professional team.
A Morgan Stanley spokesman didn’t immediately respond to an email seeking comment on the charges.
The case is US v. Cohen et al., 23-cr-134, US District Court, Southern District of New York (Manhattan).
–With assistance from Hadriana Lowenkron.
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