Securities Arbitration Lawyer Blog
Morgan Stanley’s Global Sports and Entertainment Group is a division of Morgan Stanley Wealth Management that targets professional athletes and entertainers. The group consists of approximately 168 financial advisors across the country that hold the designation “Global Sports and Entertainment Directors.” Morgan Stanley promotes that these advisors are uniquely qualified to address the needs of actors, directors, writers, producers, musicians, songwriters, professional athletes, coaches, and sport team owners. Over the past year, these brokers have received six customer complaints, according to public records.
If you or a client were a customer of Morgan Stanley’s Global Sports and Entertainment Group and either sustained financial losses or suspect that Morgan Stanley did not have your best interest in mind when recommending investments or transactions, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.
Financial Advisor Darryl Cohen (CRD No. 2786613) – Westlake Village, CA
Global Sports and Entertainment Director Darryl Cohen has been in the news recently related to two notable customer complaints made by several professional athletes. This blog has previously written about these allegations, which can be read here.
Most recently, on January 22, 2021, former NBA players Chandler Parsons and Cortney Lee have filed a $5 million securities arbitration against Morgan Stanley. Their broker was Darryl Cohen. The complaint alleges that Morgan Stanley made payments from the players’ accounts without prior approval. The complaint also alleges that Mr. Cohen recommended the use of a “liquidity access line” for real estate and life insurance policies for which they “now claim they hold no interest.”
In May 2020, Mr. Cohen was the subject of a similar customer complaint brought by a professional athlete. Former Major League Baseball outfielder Nyjer Morgan filed a securities arbitration complaint against Morgan Stanley, alleging that Mr. Cohen unsuitably recommended using a liquidity access line” to loan funds to outside business entities.
Mr. Cohen has been the subject of two other notable customer complaints. First, in 2001, an arbitration panel awarded a customer $81,851 in damages, plus interest over allegations related to investment recommendations that were not suitable for the customer. Second, in 2010, a customer alleged that Mr. Cohen made an unauthorized journal transfer from his account to another customer. The dispute was settled by Wells Fargo, which employed Mr. Cohen when the conduct occurred.
Mr. Cohen has 23 years of experience in the securities industry and joined Morgan Stanley in 2015. He works out of the firms’ branch office in Westlake Village, California.
Financial Advisor Mark Mann (CRD No. 5734553) – Cincinnati, OH
Mr. Mann is another broker in Morgan Stanley’s Global Sports and Entertainment Group that has received a customer complaint related to a “liquidity access line.” The securities arbitration complaint, filed in February 2020, alleges that Mr. Mann did not disclose the prepayment penalty associated with his liquidity access line. The arbitration dispute is pending.
Mr. Mann has 11 years of experience in the securities industry and has spent his entire career at Morgan Stanly. The works out of Morgan Stanley’s branch office in Cincinnati, Ohio.
Financial Advisor Ralph A. Jackson III (CRD No. 1569213) – Los Angeles, CA
Stockbroker Ralph A. Jackson III is a stockbroker in Morgan Stanley’s Los Angeles, CA office. Mr. Jackson, a Global Sports and Entertainment Director, has 34 years of experience in the securities industry. He has been associated with Morgan Stanley since 2008.
Mr. Jackson has five customer complaints on his public CRD report. Most recently, on January 23, 2020, a trustee alleged that investments in certain high yield corporate bonds were not suitable. The customer alleged $325,000 in damages. Morgan Stanley settled the matter for $165,000. Prior customer complaints include:
- In 2014, a customer alleged that Mr. Jackson, while employed by UBS Financial Services, Inc, acted with discretion without authority and purchased unsuitable private placement securities. UBS settled the matter for $350,000.
- In 2013, a customer filed a state court action in California alleging $7.4 million in damages arising out of private equity investments that Mr. Jackson recommended to a client. The plaintiff asserted causes of action for fraud, constructive fraud, negligent misrepresentation, breach of fiduciary duty, breach of covenant of good faith and fair dealing, violation of unfair competition law. The alleged conduct occurred while Mr. Jackson was employed by UBS between 2002 and 2008. UBS settled the matter for $6 million.
- In 2008, a customer alleged that Mr. Jackson unsuitable recommended and mispresented outside investments. The customer did not file a securities arbitration complaint and instead complained directly to UBS, the firm that employed Mr. Jackson at the time. UBS denied compensation to the client.
- In 1999, a customer alleged negligence in connection with the handling of a sale of restricted stock. Salomon Smith Barney settled the matter for $65,000.
Financial Advisor Anthony Valente (CRD No. 1526792) – Shrewsbury, NJ
Global Sports and Entertainment Director Anthony Vincent Valent has 34 years of experience in the securities industry and works out of Morgan Stanley’s branch office in Shrewsbury, New Jersey.
On January 12, 2021, a customer alleged that Mr. Valente purchased unsuitable investments in a managed account during the time period 2006 – 2017. The complaint is still pending.
Financial Advisor Kathleen Entwistle (CRD No. 2832985) – Paramus, NJ
Broker Kathleen McNicholas Entwistle recently re-joined Morgan Stanley in May 2020 and is Director in the Global Sports and Entertainment Group.
Ms. Enwistle has 23 years of experience in the securities industry. She originally worked for Morgan Stanley from 2001 – 2007. Between 2007 and 2020, she worked at UBS Financial Services Inc. in Weehawken, New Jersey.
On July 16, 2020, Ms. Enwistle received a customer complaint alleging that she failed to follow the client’s instructions purchase certain Exchange-Traded Funds (“ETFs”) and liquidate other ETF positions. The alleged conduct occurred while Ms. Enwistle was employed by UBS between May 2020 and July 2020. UBS settled the matter with the complaining customer by paying the customer monetary compensation.
Morgan Stanley – Supervisory Duties
Brokerage firms like Morgan Stanley must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.
How to Recover Financial Losses or Obtain a Free Consultation
If you or a client were a customer of Darryl Cohen, Mark Mann, Ralph A. Jackson III, Anthony Valente, Kathleen Entwistle, or Morgan Stanley’s Global Sports and Entertainment Group and either sustained financial losses or suspect that Morgan Stanley did not have your best interest in mind when recommending investments or transactions, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.