Financial advisor convicted of defrauding NBA players out of $5M

A financial advisor who built relationships with NBA players has now been convicted of betraying that trust in a major way.

According to the U.S. Attorney’s Office for the Southern District of New York, Darryl Cohen was found guilty following a five-week trial of defrauding former NBA players Chandler Parsons and Courtney Lee, as well as current Trail Blazers guard Jrue Holiday, out of more than $5 million.

“Darryl Cohen built trust with successful pro athletes, then betrayed it,” U.S. Attorney Jay Clayton said in a statement. “He stole their money to fund personal luxuries.”

Prosecutors said the scheme took place from 2017-20, with Cohen and an associate steering players into viatical life insurance policies at steep markups, in some cases exceeding 300 percent. Those profits were not disclosed.

Instead, authorities say the money was used for personal expenses, including home renovations, credit card payments and transfers tied to a romantic relationship.

The allegations went further.

Prosecutors said Cohen directed $500,000 from player accounts into what were described as charitable donations without approval. Nearly half of that money was allegedly used to build a private athletic facility at his home.

When questioned, Cohen reportedly told one player the funds were going to help underprivileged children. Investigators said that claim was false.

In another instance, more than $300,000 from Parsons’ account was allegedly used to repay a separate client, former MLB player Nyjer Morgan, again without authorization.

Cohen, 52, was convicted of wire fraud and investment adviser fraud. He faces a maximum sentence of 25 years in prison, though final sentencing will be determined by a judge.

Federal officials credited the FBI with leading the investigation.