William King’s FINRA Sanction: A Closer Look

The Financial Industry Regulatory Authority (“FINRA”) has suspended former Merrill Lynch broker William King (CRD No. 1432593) for 30 days and assessed a $5,000 monetary fine. According to FINRA Letter of Acceptance, Waiver, and Consent No. 222077401201, between January 6, 2021, and January 5, 2023, William King exercised discretion over 204 trades across the accounts of four Merrill Lynch customers without prior written authorization. This conduct violated FINRA Rule 3260(b), which prohibits discretionary trading without explicit client consent, and Rule 2010, which mandates high standards of commercial honor.

FINRA and Mr. King entered into a Letter of Acceptance, Waiver, and Consent on March 3, 2025.

Unauthorized trading often occurs in non-discretionary accounts, where a customer retains discretion. In non-discretionary accounts, brokers must obtain a customer’s permission every time before placing a trade.

Unauthorized trading is an unethical and illegal practice. It is also a violation of securities rules and regulations and can cause enormous harm to customers.

Merrill Lynch terminated Mr. King in April 2026 following allegations of unsuitable and unauthorized trading. This came after he managed a reported $1.4 billion in client assets, raising questions about the firm’s oversight of such a high-profile broker.

A Troubling Pattern: Analyzing King’s Customer Disputes

A review of King’s FINRA BrokerCheck report reveals a staggering 29 customer disputes over his 30-year career, with 24 filed since 2022 alone. This surge in complaints coincides with his final years at Merrill Lynch and paints a troubling picture of systemic issues. Let’s break down the disputes and their outcomes:

• Total Disputes: Mr. King has been the subject of 29 customer complaints, with 24 initiated between 2022 and March 2025 (current date). These recent cases likely stem from the same period of unauthorized and unsuitable trading flagged by Merrill Lynch and FINRA.
• Settled Cases: 13 of the customer disputes have resulted in monetary settlements.
• Pending Cases: 1 dispute remains pending, where a customer has alleged an unsuitable investment strategy, unauthorized trading, misrepresentation, omission of material facts, and that the Financial Advisor was not acting in their best interest in 2020.
• Denied/Closed Without Action: 10 cases were denied or closed, often with no payout. Most of these complaints were direct written and verbal complaints made to Merrill Lynch, and no legal action was taken. These individuals may still be able to pursue recovery and should consult with an attorney.

Analysis of Settlements vs. Damages: In the settled cases with disclosed amounts, investors recovered an average of 28% to 30% of their requested damages. For example, the following settlements have been disclosed:

• • May 2023: Claimed damages of $300,000; settled for $85,000 (28% of requested).
  • August 2022: Claimed damages of $500,000; settled for $150,000 (30% of requested).
  • October 2022: Claimed damages of $1,000,000; settled for $275,000 (27.5% of requested).

What Went Wrong? The Role of Brokerage Oversight

King’s case raises red flags about Merrill Lynch’s supervision. How could a broker with a $1.4 billion book engage in 204 unauthorized trades across multiple accounts without detection? FINRA Rule 3110 requires firms to establish robust supervisory systems, yet King’s actions slipped through the cracks for two years. His resignation—framed as “voluntary” but tied to serious allegations—further suggests a pattern of firms distancing themselves from liability rather than addressing root causes.

The sheer volume of customer disputes since 2022 (24 in three years) is extraordinary, even for a seasoned broker. Compare this to the industry average: studies suggest only about 7-8% of brokers have misconduct disclosures over their careers. King’s record far exceeds this, signaling a chronic issue that Merrill Lynch arguably failed to curb.

Investor Takeaways: Protecting Your Portfolio

King’s case is a wake-up call for investors. Here’s how you can safeguard your financial future:

1. Vet Your Broker: Use FINRA’s BrokerCheck to review a broker’s history. King’s 29 disputes were public knowledge—red flags that savvy investors could have spotted.
2. Monitor Your Accounts: Unauthorized trading, like King’s 204 trades, often goes unnoticed without regular scrutiny. Demand written authorization for discretionary actions.
3. Know Your Rights: If you suspect misconduct, FINRA arbitration can recover losses from brokers and firms. Claims may include negligent supervision against firms like Merrill Lynch for failing to oversee their advisors.
4. Seek Legal Help: A securities arbitration attorney can analyze your case, quantify losses, and pursue maximum recovery—especially when settlements fall short, as seen in King’s disputes.

Holding Firms Accountable

Merrill Lynch’s role cannot be overlooked. Firms have a legal duty to supervise brokers and protect clients from harm. When they falter, investors can pursue claims for damages caused by inadequate oversight. King’s $5,000 fine and 30-day suspension may deter individual misconduct, but they do little to address systemic failures or compensate victims. Arbitration offers a path to hold both brokers and firms accountable, potentially yielding awards far exceeding FINRA’s sanctions.

Act Now: Don’t Let Misconduct Cost You

William King’s story—of unauthorized trades, a flood of customer disputes, and a quiet exit from Merrill Lynch—illustrates the risks of unchecked broker behavior. If you’ve worked with King or another advisor whose actions mirror this pattern, you may have a claim. At Iorio Law PLLC, we specialize in FINRA arbitration, fighting for investors against firms like Merrill Lynch. With 24 of King’s disputes arising since 2022 and settlements averaging just 28-30% of claimed damages, the need for skilled representation is clear.

Contact us today for a free consultation. Visit our website or call (646) 330-4624 to discuss how we can help you recover losses from broker misconduct. Don’t let your investments become another statistic—let us fight for the justice you deserve.

If you or a loved one were a customer of Tyler Delahunt and either sustained financial losses or suspect inappropriate activity, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.

Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Merrill Lynch.

FINRA Letter of Acceptance, Waiver, and Consent No. 2020067348701

Tyler Delahunt and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on January 25, 2021, after Mr. Delahunt refused to provide documents and information in connection with FINRA’s investigation into whether Mr. Delahunt solicited clients in a private securities transaction without approval of Merrill Lynch and whether he had accepted loans or other funds from clients without notice to his firm.

On September 18, 2020, in connection with an investigation into the circumstances of Mr. Delahunt’s termination from Merrill Lynch, FINRA sent a request to Mr. Delahunt to produce documents and information pursuant to FINRA Rule 8210. Mr. Delahunt reportedly stated during a phone call on December 10, 2020, that he would not provide the requested information or documents at any time.

By refusing to provide the information or documents, Mr. Delahunt violated FINRA Rules 8210 and 2010. Accordingly, FINRA barred him from associating with any broker-dealer in all capacities.

Financial Advisor Tyler Dean Delahunt (CRD# 44195094)

Tyler Delahunt had 19 years of experience in the securities industry. Though his career, he was employed and registered by the following brokerage firms:

• Merrill Lynch in Atlanta, Georgia from October 2016 – August 2020.
• PFS Investments Inc. in Duluth, Georgia from April 2016 – October 2016.
• Raymond James Financial Services, Inc. in Alpharetta, Georgia from April 2009 – May 2011.
• Raymond James & Associates, Inc. in Atlanta, Georgia from April 2009 – May 2011.
• Merrill Lynch in Cumming, Georgia from December 2003 – April 2009.
• Morgan Keegan & Company, Inc. in Memphis, Tennessee from August 2001 – December 2003.

Merrill Lynch discharged Mr. Delahunt on August 3, 2020. In connection with his termination, Merrill Lynch alleged that Mr. Delahunt’s conduct involved improper solicitation of clients related to private securities transactions and participating in financial arrangements involving clients.

Merrill Lynch: A Duty to Supervise

Financial institutions, like Merrill Lynch, must properly supervise financial advisors and customer accounts. Brokerage firms are required to establish and maintain a reasonably designed system to oversee account activity to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.

How to Recover Losses or Obtain a Free Consultation

If you have suffered financial losses investing with Tyler Delahunt or suspect that Ms. Delahunt did not have your best interest in mind when recommending investments or trading in your account, contact New York securities arbitration lawyer August Iorio of Iorio Altamirano LLP at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.

• FINRA has barred financial advisor Charles Kenahan from the securities industry after he refused to cooperate with FINRA’s investigation.
• In 2019, Bank of America Merrill Lynch agreed to pay $40 million to settle with Robert Levine, co-founder of Cabletron Systems, over churning allegations.
• In December 2020, the State of New Hampshire ordered Merrill Lynch, a subsidiary of Bank of America, to pay $26.25 million in fines and restitution to settle allegations including unauthorized and excessive trading to the state and the former Governor of New Hampshire.
• Merrill Lynch was also cited for failure to supervise and ordered to maintain compliance undertakings specifically to address the compliance failures uncovered by New Hampshire’s investigation.
• These are the largest two FINRA settlements involving a Claimant in at least a decade.

Charles Kenahan was registered with Merrill Lynch, Pierce, Fenner & Smith Incorporated (“Merrill Lynch”) in Boston, Massachusetts, from December 2007 until July 2019. Merrill Lynch terminated Mr. Kenahan’s employment on July 9, 2019, after customers alleged that Mr. Kenahan engaged in unauthorized trading, unsuitable investment recommendations, and excessive trading.

If you have suffered financial losses investing with Charles Kenahan or suspect that Mr. Kenahan did not have your best interest in mind when recommending investments or trading in your account, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.

Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Merrill Lynch.

FINRA Letter of Acceptance, Waiver, and Consent No. 2018058015701

On January 22, 2021, Charles Ernest Kenahan and the Financial Industry Regulatory Authority (“FINRA”) entered into a Letter of Acceptance, Waiver, and Consent (“AWC”), after Mr. Kenahan refused to provide documents and information in connection with FINRA’s investigation into customer complaints regarding Mr. Kenahan’s sales practices.

On December 15, 2020, in connection with its investigation into customers’ allegations of churning, unauthorized trading, and unsuitable investment recommendations, FINRA sent two requests to Mr. Kenahan, one seeking the production of information and documents and a second seeking the continuation of his testimony. Mr. Kenahan’s attorney reportedly stated during a phone call on January 8, 2021, that Mr. Kenahan would not provide the requested information or documents or appear for on-the-record testimony at any time.

By refusing to provide the information or documents, Mr. Kenahan violated FINRA Rules 8210 and 2010. Accordingly, FINRA barred him from associating with any broker-dealer in all capacities.

Financial Advisor Charles Ernest Kenahan (CRD# 1351974)

Charles Ernest Kenahan had 34 years of experience in the securities industry. He was employed and registered by the following brokerage firms in Boston, Massachusetts:

• Morgan Stanley Smith Barney from June 1994 until December 2007.
• Merrill Lynch from December 2007 until July 2019.

Merrill Lynch discharged Mr. Kenahan on July 9, 2019, after customers alleged that Mr. Kenahan engaged in unauthorized trading, unsuitable investment recommendations, and excessive trading.

The first complaint was made in or around February 2018 by Craig Benson, the former governor of New Hampshire and co-founder of one-time network equipment maker Cabletron Systems. The complaint alleged that Mr. Kenahan unsuitably churned and excessively traded the accounts at issue. In December 2020, New Hampshire ordered Merrill Lynch to pay $26.25 million in fines and restitution to the state and Mr. Benson. According to reports, the state received $2 million, and Mr. Benson received $24.25 million. This sanction is the largest monetary sanction in the state’s history. The settlement with New Hampshire securities regulators also resolved Mr. Benson’s pending FINRA arbitration claim.

The second complaint was made in or around March 2018 by Mr. Benson’s former business partner, Mr. Robert Levine. Mr. Levine, a co-founder of Cabletron Systems, made similar churning allegations. It has been widely reported that in July 2019, Merrill Lynch agreed to settle the matter with Mr. Levine for $40 million.

New Hampshire’s investigation found that Mr. Kenahan traded without authorization, mismarked trade confirmations, excessively traded stocks and Initial Public Offerings, overcharged commissions, and inappropriately traded inverse and leveraged products. The misconduct led to high commissions for Merrill Lynch and Mr. Kenahan and large losses to the investors.

The settlements to Mr. Benson and Mr. Levine are believed to be the two largest settlements involving an individual claimant in at least a decade.

In non-discretionary accounts, customers retain discretion, and brokers must always obtain their customer’s permission before placing a trade. You can read more about unauthorized trading in the context of both discretionary and non-discretionary accounts here: Unauthorized Trading.

Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker. Excessive trading is unethical and illegal.

Merrill Lynch: A Duty to Supervise

New Hampshire regulators cited Merrill Lynch for failure to supervise Mr. Kenahan’s sales practices and trading activity. The state regulator ordered Merrill Lynch to maintain compliance undertakings specifically to address the compliance failures undercover by the regulator’s investigation.

Financial institutions, like Merrill Lynch, must properly supervise financial advisors and customer accounts. Brokerage firms are required to establish and maintain a reasonably designed system to oversee account activity, such as mutual fund switches and the improper use of discretion, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.

How to Recover Losses or Obtain a Free Consultation

If you have suffered financial losses investing with Charles Kenahan or suspect that Ms. Kenahan did not have your best interest in mind when recommending investments or trading in your account, contact New York securities arbitration lawyer August Iorio of Iorio Altamirano LLP at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.

According to public records, shortly after Mr. Raskin’s termination, a customer complained that Mr. Raskin engaged in unauthorized trading and churning of mutual funds and money funds from January 2018 until January 2020. Peculiarly, Merrill Lynch denied this customer’s complaint.

Investors should be aware that filing a complaint directly with a financial institution, like Merrill Lynch, is not the same as filing a securities arbitration complaint. If an investor is seeking monetary compensation, the investor must initiate a securities arbitration through FINRA Dispute Resolution Services.

Securities arbitration is a unique and complex practice area. Investors should seek out experienced counsel who understands the FINRA forum and can navigate the arbitration process to effectively advocate on their behalf.

If you have suffered financial losses investing with Ryan Raskin or suspect that Mr. Raskin made trades in your account that were not authorized or excessively traded your account, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.

Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Merrill Lynch.

FINRA Letter of Acceptance, Waiver, and Consent No. 2020066135901

Ryan Raskin and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on January 13, 2021, after Mr. Raskin refused to provide documents and information in connection with FINRA’s investigation into whether Mr. Raskin made inappropriate investment recommendations involving mutual funds.

On August 31, 2020, in connection with an investigation into the circumstances of Mr. Raskin’s termination from Merrill Lynch, FINRA sent a request to Mr. Raskin to produce documents and information pursuant to FINRA Rule 8210. Mr. Raskin reportedly stated during a phone call and email on September 8, 2020, that he would not provide the requested information or documents at any time. On December 17, 2020, FINRA sent a second request to Mr. Raskin to produce the same documents and information. Mr. Raskin reportedly stated during a phone call on December 17, 2020, that he did not intend to respond to the request.

By refusing to provide the information or documents, Mr. Raskin violated FINRA Rules 8210 and 2010. Accordingly, FINRA barred him from associating with any broker-dealer in all capacities.

Financial Advisor Ryan Ashley Raskin (CRD# 5539610)

Ryan Ashley Raskin had 11 years of experience in the securities industry. He was employed and registered by the following brokerage firms in Beverly Hills, California:

• Morgan Stanley Smith Barney from May 2009 until May 2016.
• Merrill Lynch from May 2016 until March 2020.

Merrill Lynch discharged Mr. Raskin on March 4, 2020. In connection with his termination, Merrill Lynch alleged that Mr. Raskin’s business practices were inconsistent with Merrill Lynch’s standards, including inappropriate investment recommendations involving mutual funds.

A few months later, in September 2020, a customer submitted a complaint to Merrill Lynch about Mr. Raskin’s conduct. The customer alleged that Mr. Raskin engaged in unauthorized trading and churning from January 2018 until January 2020. Mutual funds and money funds were the securities at issue. However, even though the customer’s allegations are remarkably similar to the allegations made by Merrill Lynch when it fired Mr. Raskin a few months earlier, Merrill Lynch denied the customer’s complaint.

According to Mr. Raskin’s BrokerCheck report, this customer did not file a securities arbitration complaint. Investors should be aware that even if a firm such as Merrill Lynch denies their complaint, they can still file a securities arbitration through FINRA Dispute Resolution Services.

In non-discretionary accounts, customers retain discretion, and brokers must always obtain their customer’s permission before placing a trade. You can read more about unauthorized trading in the context of both discretionary and non-discretionary accounts here: Unauthorized Trading.

Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker. Excessive trading is unethical and illegal.

If you or a loved one were a customer of Ryan Raskin and either sustained financial losses or suspect inappropriate trading activity in your investment or retirement account, contact Iorio Altamirano LLP for a free and confidential evaluation.

Merrill Lynch: A Duty to Supervise

Brokerage firms, like Merrill Lynch, must properly supervise financial advisors and customer accounts. Brokerage firms are required to establish and maintain a reasonably designed system to oversee account activity, such as mutual fund switches and the improper use of discretion, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.

How to Recover Losses or Obtain a Free Consultation

If you have suffered financial losses investing with Ryan Raskin or suspect that Ms. Raskin did not have your best interest in mind when recommending investments or trading in your account, contact New York securities arbitration lawyer August Iorio of Iorio Altamirano LLP at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.

Since leaving Merrill Lynch, Mr. Alame has been affiliated with Insight Advisors, LLC in Newtown, Pennsylvania, and Gate Key Financial, L.L.C., in Raleigh, North Carolina.

If you have lost money with Rawad Alame, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Mr. Alame and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on December 21, 2020, over allegations that Mr. Alame participated in private securities transactions involving his management of a customer’s securities account held at another firm. Specifically, FINRA alleged:

• Alame recommended that his customer open a brokerage account at another FINRA member brokerage firm.
• Between February 2019 and July 2019, Mr. Alame recommended and executed 36 transactions in options securities in the account held away from Merrill Lynch.
• The transactions included $578,246 in options purchases.
• The customer paid Mr. Alame at least $2,700 in compensation for his purchase and sale activity in the outside account, which resulted in $107,195 in realized losses.
• Alame did not provide written notice to Merrill Lynch, or obtain the firm’s approval, prior to participating in these private securities transactions.
• Additionally, in April 2019, Mr. Alame falsely certified in response to a Merrill Lynch compliance questionnaire that within the last twelve months he had not been paid by any client for business conducted outside of Merrill Lynch, had not been given passwords to log into a brokerage account, and did not participate in any accounts with clients that were not approved by the firm.

When a financial advisor solicits a customer to participate in a securities transaction that is not offered or approved by the advisor’s employing brokerage firm, it is often referred to as selling away.

Brokerage firms like Merrill Lynch must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as private securities transactions, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.

If you have lost money with Rawad Roy Alame or Merrill Lynch, contact New York securities arbitration lawyer August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential review of your account.

Iorio Altamirano LLP is a boutique law firm located in the heart of New York City. Iorio Altamirano LLP represents investors nationwide who have suffered investment losses due to securities fraud.

If you have lost money with Douglas Stopkey, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Douglas Stopkey and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) on October 26, 2020, over allegations related to Stopkey’s conduct between January 2016 and June 2018. Specifically, FINRA alleged:

• Mr. Stopkey executed nearly 300 unauthorized trades in seven accounts belonging to four senior customers.
• He exercised discretion without written authorization by the four senior customers for the accounts to be discretionary.
• Mr. Stopkey lacked his firm’s approval for the accounts to be discretionary.
• He mismarked 65 solicited orders as “unsolicited.”
• M. Stopkey caused Merrill Lynch to maintain inaccurate books and records.

Prior to the FINRA AWC, Stopkey was fined $10,000 by the Division of Securities and Retail Franchising of the Commonwealth of Virginia’s State Corporation Commission. The allegations involved the same misconduct as investigated by FINRA.

Under FINRA rules, to exercise discretionary power, a broker must have prior written authorization from a customer before executing a trade. Prior written consent involves a customer signing a discretionary disclosure that allows the customer also to place limits on the broker’s discretion. Additionally, the firm must approve the account to be discretionary. A broker can then use his discretion and place trades without obtaining the customer’s authorization first. However, without such written authorization by the customer and firm approval, a broker who receives verbal authorization from a client to execute a trade and makes the transaction violates FINRA rules. Oral permission to execute a trade is not sufficient.

In non-discretionary accounts, customers retain discretion, and brokers must always obtain their customer’s permission before placing a trade.

Financial Advisor Douglas Stopkey (CRD#: 2209717)

Mr. Stopkey inaccurately answered compliance questionnaires in March 2016, March 2017, and March 2018, even suggesting to the firm’s compliance department that a security trade in question was a customer’s idea.

Under applicable securities laws and FINRA rules, firms must maintain books and records, including a “memorandum of each brokerage order.” A broker who mismarks an order as “unsolicited” causes a firm to create inaccurate books and records. Mr. Stopkey mismarked 65 trades as “unsolicited” even though he did not discuss the trades with the customers. A “solicited” trade is essentially a trade that was the broker’s idea, and it should be marked as such. A trade confirmation reflecting a “solicited” trade as “unsolicited” should be a red flag to investors.

If you have lost money with Douglas Stopkey or Merrill Lynch, contact New York securities arbitration lawyer August Iorio at info@iorio.law or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.