A trusted financial advisor built relationships with NBA players. Then, according to federal prosecutors, he used that trust to steal millions.
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Now, he's been convicted.
The U.S. Attorney's Office for the Southern District of New York announced that Darryl Cohen was found guilty after a five-week trial of defrauding three former clients, Chandler Parsons, Courtney Lee and 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. "He stole their money to fund personal luxuries."
According to prosecutors, the scheme ran from 2017 through 2020.
Cohen and an associate allegedly steered the players into buying viatical life insurance policies at massive markups, some exceeding 300 percent. The profits were never disclosed.
Instead, authorities say, the money went toward Cohen's personal expenses.
That included renovations to his home, credit card payments, and large transfers to someone he was romantically involved with.
But it didn't stop there.
Prosecutors said Cohen also directed $500,000 from player accounts into what were described as charitable donations. The players never approved those transfers.
Nearly half of that money, officials say, was used to build a high-end athletic gym in Cohen's own backyard.
When confronted, Cohen allegedly told one of the players the funds were helping "underprivileged kids."
Investigators say that wasn't true.
In another instance, prosecutors said Cohen used more than $300,000 from Parsons' account to repay a separate client, former MLB player Nyjer Morgan, without authorization.
"We gotta send [Morgan] more to get rid of him," Cohen reportedly wrote in a message during that time.
Cohen, 52, was convicted of wire fraud and investment adviser fraud. He faces up to 25 years in prison, though a judge will ultimately decide his sentence.
Federal officials credited the Federal Bureau of Investigation for its work on the case.
For the NBA players involved, it's a reminder of how quickly trust can be broken, even at the highest levels of professional sports.
