← Broker database 2026-03-03
David Nathan Cohen Barred for Refusing to Testify in FINRA Investigation into Customer Fund Misappropriation
According to FINRA, David Nathan Cohen (CRD #5083883) of Yonkers, New York, was barred from association with any FINRA member in all capacities after refusing to appear for on-the-record testimony requested by FINRA in connection with its investigation into whether he converted or misappropriated customer funds.
Cohen consented to the sanction and to the entry of findings in an AWC issued on March 3, 2026, without admitting or denying the underlying findings. FINRA's investigation was focused on potential conversion or misappropriation — among the most serious forms of misconduct in the securities industry, involving the unauthorized taking of customer funds or assets for personal use.
FINRA Rule 8210 grants FINRA the authority to require any member firm or associated person to appear and provide on-the-record testimony in connection with a regulatory investigation. This authority is fundamental to FINRA's ability to conduct examinations and investigations and to protect investors. Refusing to appear for requested testimony is an independent violation of FINRA rules that results in a bar regardless of whether the underlying allegations are ultimately proven.
The decision to bar Cohen permanently from the industry reflects the seriousness with which FINRA treats non-cooperation. Even if an individual believes they have valid reasons for not responding, the appropriate recourse is through the legal process — not outright refusal. Industry participants who refuse to cooperate with FINRA investigations forfeit their ability to remain associated with any FINRA member firm.
Conversion and misappropriation of customer funds cause direct, tangible financial harm to investors. Victims often discover the loss only after significant damage has been done, and recovery may be difficult. Investors should regularly review account statements and transaction confirmations for accuracy and report any unauthorized activity immediately to their firm and, if not resolved, to FINRA or their state securities regulator.
FINRA BrokerCheck contains records of all formal disciplinary actions against brokers and can be used to check the background of any financial professional before entrusting them with your assets.