According to a report from the New York Times, Milwaukee Bucks point guard Jrue Holiday and his wife, Lauren have joined two former NBA players in a lawsuit against Morgan Stanley and a former broker for inappropriately distributing money that is now unaccounted for.
The Holidays, Chandler Parsons and Courtney Lee allege Morgan Stanley broker Darryl M. Cohen diverted about $7.7 million of their money to “dubious individuals and entities,” per the New York Times report. The report says Morgan Stanley terminated Cohen’s employment in March 2021.
The Holidays assert Cohen misappropriated $2.3 million.
According to the report, former Milwaukee Brewers outfielder Nyjer Morgan also had litigation over improper use of his personal funds against Cohen and received a settlement.
The Financial Industry Regulatory Authority (FINRA) is a non-governmental organization overseeing brokerage firms and their registered representatives in the United States. Established in 2007 through the merger of the NASD and the regulatory functions of the New York Stock Exchange, FINRA operates under the authority of the Securities and Exchange Commission (SEC). Its primary role is to ensure that the securities industry operates fairly and transparently, protecting investors and maintaining market integrity.
FINRA enforces rules and regulations governing the conduct of financial professionals and firms, conducting routine examinations and investigating potential violations. It also provides a platform for resolving disputes between investors and firms through its arbitration and mediation services. In addition, FINRA offers educational resources for investors to enhance their understanding of financial markets and products.
The organization plays a critical role in maintaining confidence in the financial system by promoting ethical behavior, implementing rigorous compliance standards, and fostering transparency. By overseeing a vast network of brokerage firms and individual brokers, FINRA helps ensure that investors are treated fairly and that financial markets operate efficiently and equitably.