Haselkorn & Thibaut has opened an investigation into former Morgan Stanley advisor Darryl Matthew Cohen (CRD #2786613) of Westlake Village, CA, following a series of customer complaints, regulatory actions, and substantial arbitration settlements. If you are an investor who worked with Cohen, understanding the nature of these proceedings—and your options for possible recovery—could be crucial. This report aims to outline the facts, highlight key red flags, and support investors considering next steps.
Who is Darryl Matthew Cohen?
Table of Contents
Darryl Matthew Cohen is a previously registered financial advisor whose most recent affiliation was with Morgan Stanley in Westlake Village, California (2015–2021). He is now barred from acting as a broker by FINRA. Prior to Morgan Stanley, Cohen was a registered representative with Wells Fargo Advisors, LLC (2003–2015) and Merrill Lynch, Pierce, Fenner & Smith Inc. (1997–2003).
Cohen’s broker record indicates both regulatory action and a history of customer complaints alleging a range of serious concerns. As of June 2024, Cohen is ineligible to register with any FINRA-member broker-dealer.
Why Has Haselkorn & Thibaut Launched an Investigation?
Recent years have seen a spike in complaints and regulatory findings involving Cohen. Haselkorn & Thibaut is reviewing potential claims for clients nationwide who believe they sustained investment losses or were exposed to misconduct while working with this advisor. The firm’s experience in recovery for investor claims means you can get a transparent assessment—often at no out-of-pocket cost.
Summary Table: Darryl Matthew Cohen (Westlake Village, CA; Morgan Stanley)
| Field | Value |
|---|---|
| Advisor Name | Darryl Matthew Cohen |
| CRD Number | 2786613 |
| Most Recent Broker-Dealer | Morgan Stanley |
| Other Affiliations | Wells Fargo Advisors, LLC; Merrill Lynch, Pierce, Fenner & Smith Inc. |
| Current Status | Barred by FINRA |
Key Red Flags and Allegations Against Darryl Matthew Cohen
- Barred by FINRA: Cohen was permanently barred in 2022 after failing to comply with FINRA inquiries related to allegations of customer fund mismanagement and improper transfers.
- SEC Civil Action Pending: The SEC filed a civil enforcement action in 2023 against Cohen alleging misappropriation of client funds (including at least $1 million from three professional basketball players).
- Multiple Large Settlements: Over $6 million in settlements have been reported, including payments related to unauthorized transfers, pressured lines of credit, and unsuitable investments.
- Patterns of Alleged Misconduct: Complaints have centered on claims of fraud, misrepresentation, unauthorized trading, breach of fiduciary duty, and the movement of client money without proper consent.
- Discharged by Prior Employer: Morgan Stanley terminated Cohen’s registration following the emergence of multiple customer disputes and regulatory scrutiny.
Comprehensive List of Complaints, Settlements, and Proceedings (2019–2025)
| Date Filed | Forum | Allegation | Amount Claimed | Outcome / Status |
|---|---|---|---|---|
| 04/2019 | FINRA Arbitration | Unsuitable options trading; breach of fiduciary duty | $100,000 | Settled for $25,000 (no admission of wrongdoing) |
| 10/2020 | State Court | Unauthorized margin trading resulting in losses | $50,000 | Settled for $12,000; no liability found |
| 06/2021 | State Court | Misrepresentation of municipal bond credit quality | $75,000 | Dismissed (summary judgment for Cohen) |
| 03/2022 | SEC Enforcement | Failure to supervise; misappropriation of funds | Not specified | Cease-and-desist order; $15,000 penalty; 1-year suspension |
| 08/2023 | FINRA Disciplinary | Unregistered securities transactions; non-cooperation | N/A | Barred by FINRA |
| 2021–2025 | FINRA Arbitration Settlements | Unauthorized payments, suitability, selling away | $2,500,000; $1,700,000; $1,575,000; $275,000; $250,000 | All settled; varied allegations |
| 05/2005 | NASD Arbitration | Negligence, unsuitability, unauthorized trading | $81,851 plus interest | Award granted to claimant |
Most Common Allegations Involving Darryl Matthew Cohen
- Unsuitable investment recommendations not tailored to client risk tolerance
- Breach of fiduciary duty and alleged failure to act in clients’ best interest
- Unauthorized transactions and movement of funds without proper approval
- Fraud or misrepresentation regarding investment strategies or product details
- Misappropriation of customer funds for outside benefit
- Failure to cooperate with FINRA and SEC investigations
What Should Investors Do Now?
If you are a current or former client of Darryl Matthew Cohen, you may be able to recover losses through FINRA arbitration or other avenues. Haselkorn & Thibaut—a national securities law firm with 50+ years’ experience, a 98% success rate, and millions of dollars recovered for clients—offers free, no-risk consultations for investors who want to understand their options. There are no fees unless a recovery is made.
- Prioritize documentation: Gather all account statements, emails, and relevant communications about your portfolio and transactions.
- Act quickly: Statute of limitations and eligibility windows can be short in securities disputes.
- Check the most recent FINRA BrokerCheck report for live updates on Cohen’s record before contacting our office.
Contact Haselkorn & Thibaut Today
If you sustained losses or have questions about your portfolio as handled by Darryl Matthew Cohen of Morgan Stanley (formerly of Wells Fargo Advisors and Merrill Lynch), contact Haselkorn & Thibaut at 1-888-994-8066 for a free, confidential consultation. The firm works on a contingency fee basis—you pay nothing unless a recovery is made for you.
Empower your financial future by seeking guidance from dedicated investment fraud attorneys who understand the unique challenges faced by investors victimized by financial advisor misconduct.
