Ex-Morgan Stanley Adviser Loses Bid to Dismiss Fraud Charges

A former Morgan Stanley investment adviser charged with defrauding multiple NBA player clients was unable to dismiss the criminal charges against him after a federal judge in New York said the government adequately alleged wire fraud.

Daryl Cohen argued he was accused of secretly profiting from a markup on life insurance policies, claiming the government failed to allege harm beyond withheld information. But there’s no “secret profit” exception to the wire fraud statute, the US District Court for the Southern District of New York said in a Dec. 19 decision.

The indictment clearly alleged Cohen’s victims were cheated out of ...