Georgia man guilty of cheating ex-NBA players Howard, Parsons of $8M

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Georgia man guilty of cheating ex-NBA players Howard, Parsons of $8M​

A Georgia businessman was convicted Friday on five counts by a federal jury in Manhattan of defrauding former NBA players Dwight Howard and Chandler Parsons of a combined $8 million in 2021. Calvin Darden Jr. was found guilty of fraud, bank fraud, money laundering and two different conspiracy counts. Darden was involved in multiple schemes with former NBA agent Charles Briscoe, who pleaded guilty to his role in the case last year. Prosecutors presented evidence that Howard sent Darden a $7 million payment for what the former All-Star thought was part of an effort to purchase WNBA team the Atlanta Dream. The case was part of a sweeping series of charges and arrests made by the Southern District of New York last year. Next year, a former Morgan Stanley financial adviser, Darryl Cohen, is set to stand trial as part of a scheme that the government alleges defrauded Boston Celtics star Jrue Holiday among others.

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SEC Charges Financial Adviser for Misappropriating More Than $1 Million From Current, Former NBA Players

The Securities and Exchange Commission today charged Darryl Matthew Cohen, a former investment adviser at a large financial institution, with misappropriating more than $1 million from three current and former NBA players over a period of two and a half years. According to the SEC’s complaint, from October 2017 through April 2020, Cohen used client funds, without their understanding or authorization, for personal expenditures including to support his son’s amateur basketball program, for a home gym, and to pay back another client whose funds Cohen had misappropriated. Cohen also allegedly sold life insurance settlements to the clients for kickbacks to fund his home improvements. The SEC’s complaint, filed in U.S. District Court for the Southern District of New York, charges Cohen with violating the antifraud provisions of the federal securities laws. The complaint seeks permanent injunctive relief, disgorgement and prejudgment interest, and a civil penalty. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Cohen.

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Ex-morgan Stanley advisor charged with defrauding NBA players out of millions
Cohen is charged with one count of conspiracy to commit wire fraud and one count of wire fraud, according to federal prosecutors. Each count carries up to a 20-year prison sentence. He is also facing investment advisor fraud charges, which carry a maximum five-year prison sentence. Three others, including former NBA players agent Charles Briscoe, were also charged.

Barred broker set to fight pro athletes' allegations of fraud
The case highlights the dangers professional athletes face when seeking investments advice, even when they turn to a well-known wirehouse. Athletes are the prime target for both scrupulous and unscrupulous advisers and are often a financial pinata for bad financial advisers, said Andrew Stoltmann, a Chicago securities attorney.