Darrin Stuart Cohen, a registered investment adviser and broker based in Georgia, is the subject of two pending customer disputes based on the allegation of unsuitable investment recommendations, according to Darrin Cohen investigation conducted by attorney Alan Rosca.
Broker misconduct attorney Alan Rosca, of the Goldman Scarlato & Penny PC law firm is currently investigating conduct related to the two pending customer disputes instituted against broker Darrin Cohen, primarily on the allegation of unsuitable investment recommendations.
Darrin Cohen investigation shows that he was in the employment of the Financial Industry Regulatory Authority (FINRA) member firm, Triad Advisor LLC when he allegedly made such recommendations and when the actions were instituted against him. As at the time of this article, Darrin Cohen is still employed by the same brokerage firm.
As revealed by the Darrin Cohen investigation, he is reportedly facing two pending customer disputes according to the reports on his FINRA Brokercheck page. The investigation further reveals that the customer disputes for the alleged unsuitable investment recommendation could be related to the already controversial GPB Capital investments.
The customer disputes were both instituted in March 2020. The later client seeks $400,000 in damages on the allegations of unsuitability of investment recommendation with respect to multiple alternative investments including those purchased in 2015.
The first client also seeks to recover $200,000 in damages from the Triad Advisor broker, Darrin Cohen on similar allegations of unsuitable investment recommendation. The investigation by the broker misconduct lawyers alleges that Darrin Cohen unsuitability of recommended investment was based on the investment into GPB Capital on behalf of the investors.
GPB Capital holdings, their alternative investments, and/or financial industry agents who sold these investments have been under investigation by state and federal securities regulators. More recently, the Massachusetts Securities Department filed an enforcement action against the holdings. There has not been any finding of liability or misconduct at this time. The Goldman Scarlato & Penny lawyers already represent other GPB investors and are seeking compensation for their alleged losses.
Generally speaking, brokers are expected to comply with certain standards in order to protect their clients and investors. When the brokers fail to comply, this may amount to broker misconduct which could put the client’s investments in jeopardy. Broker misconduct of this nature could lead to the dwindling of investor confidence in the market and where severe, a total loss of confidence. Where the misconduct is properly established, the broker or investment adviser could potentially be held liable for the loss.
The suitability of investment recommendations is vital to the process of investing, and as a result a broker is expected to adequately determine the suitability of any investment option before recommending such to an investor. This due diligence is for the broker to satisfy that the issuer of the security is not misrepresenting any portion of the security or investment.
The broker must ascertain whether the recommended investment is a viable and valid investment for any investor at all before considering whether it is suitable for their specific client. For instance, a Ponzi scheme is an unsuitable investment recommendation for any investor.
The due diligence should begin with an inquiry into the investment and its issuer. The broker is typically expected to carefully examine the business and operations of the issuer.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated, and the general considerations above are for informational purposes only and do not constitute legal advice. Investors looking for legal advice should reach out to qualified counsel and describe the specific facts surrounding their situation to receive such advice.
The Goldman Scarlato & Penny PC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to broker Darrin Cohen’s two pending customer disputes on the allegation of unsuitable investment recommendation.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related to broker Darrin Cohen’s two pending customer disputes on the allegation of unsuitable investment recommendation may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at email@example.com, or through the contact form on this webpage.