Ex-Morgan Stanley Adviser Convicted of Defrauding NBA Stars

Darryl Cohen used $5M stolen from Jrue Holiday, Chandler Parsons and Courtney Lee to build backyard gym, pay lover

Published on Mar. 4, 2026

Got story updates? Submit your updates here. ›

A former Morgan Stanley financial adviser, Darryl Cohen, was convicted of federal fraud charges for cheating three NBA stars - Jrue Holiday, Chandler Parsons and Courtney Lee - out of $5 million. Cohen duped the players into buying specialized life insurance policies at astronomical markups, then used the proceeds to build a backyard gym, pay off his credit card, and give $200,000 to his lover.

Why it matters

This case highlights the vulnerability of professional athletes to financial fraud, as well as the need for tighter regulations and oversight of financial advisers who work with high-profile clients. It also raises concerns about the potential for abuse within the specialized life insurance policy market.

The details

According to federal prosecutors, Cohen and his accomplice, accountant Brian Gilder, convinced the three NBA players to purchase viatical settlement life insurance policies - a specialized investment that allows individuals with limited life expectancy to sell their policies for a discounted lump-sum payment. However, Cohen and Gilder sold the policies to the players at markups ranging from 222% to 310%. Cohen then used some of the stolen funds to build a state-of-the-art gym in his backyard, pay off his credit card, and give $200,000 to his lover.

  • In 2023, Cohen was indicted on fraud charges along with three others implicated in the scheme to cheat NBA players.
  • This week, a federal jury found Cohen guilty of wire fraud and investment adviser fraud.

The players

Darryl Cohen

A former Morgan Stanley financial adviser who was convicted of federal fraud charges for cheating three NBA stars out of $5 million.

Jrue Holiday

One of the three NBA stars who was defrauded by Cohen.

Chandler Parsons

One of the three NBA stars who was defrauded by Cohen.

Courtney Lee

One of the three NBA stars who was defrauded by Cohen.

Brian Gilder

An accountant who was charged along with Cohen in the scheme to cheat the NBA players.

Got photos? Submit your photos here. ›

What they’re saying

“Financial Advisor Darryl Cohen built trust with successful pro athletes—then betrayed it, stealing their money to fund personal luxuries, including a state-of-the-art gym in his own backyard.”

— Jay Clayton, US Attorney for the Southern District of New York

“New Yorkers deserve honest financial advice—not advisors who scheme to steal clients' funds, rather than protect their financial interests—and this office is committed to removing bad actors from our markets.”

— Jay Clayton, US Attorney for the Southern District of New York

What’s next

Cohen and Gilder are scheduled to be sentenced for their crimes. The NBA players who were defrauded may also pursue civil lawsuits against Cohen and Morgan Stanley.

The takeaway

This case underscores the importance of professional athletes, and all investors, thoroughly vetting their financial advisers and being vigilant against potential fraud. It also highlights the need for stronger regulations and oversight to protect vulnerable clients from unscrupulous financial advisers.