Ex-Morgan Stanley Adviser Convicted of Defrauding NBA Players

A former Morgan Stanley investment adviser was convicted of defrauding three professional basketball players out of millions of dollars.

Darryl Cohen was found guilty by a jury in Manhattan on two counts Tuesday following a monthlong trial. He faces a maximum sentence of 20 years in prison for persuading his clients to buy so-called viatical life insurance polices at massive markups and make other fraudulent payments.

Though the jury, which began deliberating Friday, convicted Cohen of wire fraud and investment adviser fraud, it couldn’t reach a verdict on a third count of conspiracy. The judge declared a mistrial on that ...