Athlete Investment Fraud

Broker-Dealer Ordered To Pay $9.5M Settlement in Alleged Athlete Investment Fraud

If you are an investor who sustained serious losses while working with ex-Merrill Lynch, Pierce, Fenner & Smith stockbroker Isaiah Thomas Williams, Jr., the Shepherd Smith Edwards and Kantas Athlete Investment Fraud team (investorlawyers.com) wants to talk to you. He was a registered representative with Merrill out of Boca Raton, Florida, from 2017 – 2025.

Isaiah Williams voluntarily resigned following allegations of unsuitable asset allocation, misappropriation, misrepresentations, and improper outside business activities. In August 2025, he was arrested and charged with fraud, grand theft, and money laundering.

Recently, Merrill lynch agreed to pay former Miami Dolphins Pro Bowl defensive back, Reshad Jones, a $9.5M settlement over losses he sustained while working with Williams. The then-Merrill Lynch financial advisor allegedly stole money from this customer’s accounts to fund his own expenses, including plane tickets, dates with women, nightclubs, strip clubs, child support payments, rent, and more.

Isaiah Williams’ CRD on BrokerCheck lists five disclosures. In addition to the settlement reached with Jones, there is another pending customer dispute accusing him of unsuitability and Regulation Best Interest violations. The claimant is pursuing $3.5M in damages. Williams was permanently barred by the Financial Industry Regulatory Authority (FINRA) earlier this year.

Why Is Merrill Lynch Settling Over Its Former Broker’s Alleged Misappropriation?

As Williams’ former broker-dealer of record, Merrill Lynch had a duty to properly supervise this registered representative and his activities in customers’ accounts, as well as identify any red flags indicating something was amiss. A failure to supervise can enable broker misconduct, misappropriation, and fraud in customers’ accounts.

What Is Athlete Investment Fraud?

Unfortunately, current and former professional athletes continue to be a favorite target of financial fraudsters, including bad brokers seeking to take advantage of these wealthy clients’ investing inexperience and high earnings. A 2021 report by Ernst & Young found that from 2004 to 2019, professional athletes reported nearly $600M in losses involving fraud. It is not uncommon for famous and wealthy athletes to rely on financial professionals to manage, preserve, and grow their money.

As a matter of fact, this is not the only time that Merrill Lynch has been accused of inadequate supervision of a broker who allegedly defrauded a professional athlete. In 2018, the Financial Industry Regulatory Authority (FINRA) ordered the broker-dealer to pay $300K after finding that it failed to properly supervise former financial advisor Eva Weinberg. She was sentenced to prison for defrauding NFL football player Dwight Freeney.

How Can Our Broker Fraud Attorneys Help?

Shepherd Smith Edwards and Kantas represents inexperienced investors, accredited investors, high-net-worth investors, and ultra-high-net-worth investors in pursuing the damages owed to them by their broker-dealer that enabled their customers to become victims of fraud or negligence. We have helped thousands of investors to recoup losses in arbitration, mediation, and litigation. This includes tackling the most complex kinds of investment loss recovery claims against the largest brokerage firms in the US.

Call (800) 259-9010 today or fill out this online contact form to schedule your free case consultation.