Merrill Lynch Pays $9.5 Million to Settle FINRA Arbitration Brought by Former NFL Star Reshad Jones

Merrill Lynch, Pierce, Fenner & Smith Incorporated has agreed to pay $9.5 million to settle a FINRA arbitration claim filed by former Miami Dolphins safety Reshad Jones. The claim stemmed from alleged misconduct by Jones’s former financial advisor, Isaiah Thomas Williams, who was accused of misappropriating over $2.5 million from the NFL veteran’s investment accounts.

The case, FINRA Case No. 24-02575, filed on December 5, 2024, and settled on August 14, 2025, underscores the growing scrutiny of broker-dealer supervision failures and the ongoing risks of financial advisor misconduct among professional athletes.

The Allegations: Misappropriation, Misrepresentation, and Unsuitable Advice

According to Jones’s Statement of Claim, Williams engaged in misappropriation, unsuitable asset allocation, misrepresentations, and improper outside business activities while managing Jones’s portfolio at Merrill Lynch’s Boca Raton, Florida branch. Jones sought approximately $16 million in damages, alleging that Merrill Lynch failed to properly supervise its employee and ignored red flags that could have prevented the theft.

Court and regulatory filings allege that Williams used his position as Jones’s trusted advisor to transfer funds from Jones’s accounts without authorization. According to a June 2024 arrest report cited by ESPN, Williams allegedly siphoned $1.56 million through 133 separate transactions, and another $1.03 million through a laundering scheme involving Octivia Monique Graham, a Georgia-based woman Jones had never met. The funds were allegedly spent on luxury cars, jewelry, airline tickets, hotels, and strip clubs.

Williams was arrested and charged with first-degree organized fraud and first-degree grand theft, both punishable by up to 30 years in prison. He was released on $1 million bond and is awaiting trial.

FINRA Bars Isaiah Williams from the Securities Industry

In April 2025, FINRA permanently barred Williams after he refused to cooperate with its investigation into the allegations.

According to FINRA’s findings (Case No. 2024082549801), Williams violated FINRA Rules 8210 and 2010 by failing to provide documents and information requested in connection with his firm’s internal review. Merrill Lynch’s Form U5 filings disclosed that Williams “voluntarily resigned while under internal review into allegations of misappropriation, unsuitable asset allocation, misrepresentations, and an improper business activity.”

BrokerCheck records show that Williams, who entered the industry in 2013, worked briefly for UBS Financial Services, Inc. before joining Merrill Lynch in 2017. His record reflects multiple customer complaints, including:

May 2024: A customer alleged misrepresentation and improper outside business activity between March 2019 and May 2024.
July 2025: A separate client alleged that Williams failed to act in the client’s best interest and recommended an unsuitable asset allocation strategy. The customer seeks $3.5 million in damages.

Merrill Lynch’s $9.5 Million Settlement

Although Merrill Lynch denied liability, the $9.5 million settlement reflects the seriousness of the allegations and the firm’s potential exposure to supervisory liability under FINRA Rule 3110.

Broker-dealers are legally obligated to supervise their registered representatives and prevent misconduct that can harm investors. When a firm fails to detect or respond to red flags—such as unauthorized transfers, undisclosed outside business activities, or complaints from high-net-worth clients—it can be held responsible for resulting losses.

This case also illustrates a recurring theme in FINRA arbitration: broker-dealer supervision failures involving trusted financial advisors who misuse personal relationships. Many athletes and entertainers rely heavily on their advisors’ expertise and integrity, often granting them access to personal accounts. When that trust is breached, the damage can be both financial and personal.

Athlete Investment Fraud: A Growing Concern

Professional athletes are frequent targets of financial fraud due to their high earnings and limited investment experience. Reshad Jones, who made over $56 million during his 10-year NFL career, joins a growing list of athletes who have pursued claims against major financial institutions for supervisory failures.

The intersection of sports and finance has drawn increased regulatory attention. FINRA and the SEC have both emphasized the duty of brokerage firms to identify red flags, monitor for misappropriation, and prevent outside business activities that create conflicts of interest.

According to Iorio Law PLLC’s founder August M. Iorio, a New York-based securities arbitration attorney:

“Cases like this highlight why supervision is the cornerstone of investor protection. When brokerage firms fail to detect unauthorized transfers or ignore clear warning signs, investors—whether athletes, retirees, or small business owners—pay the price. FINRA arbitration gives victims a forum to recover those losses and hold firms accountable.”

Legal and Regulatory Standards at Issue

Broker-dealers and financial advisors are subject to several key obligations under FINRA and SEC rules, including:

Regulation Best Interest (Reg BI): Advisors must place clients’ interests ahead of their own when making investment recommendations.
FINRA Rule 2111 (Suitability): Brokers must recommend investments suitable for the client’s financial situation and objectives.
FINRA Rule 3110 (Supervision): Firms must establish and maintain systems to detect and prevent misconduct.
FINRA Rule 2010: Registered persons must observe high standards of commercial honor and just and equitable principles of trade.
FINRA Rule 8210: Registered persons must cooperate with FINRA investigations or face permanent industry bars.

Williams’s conduct violated several of these rules, and Merrill Lynch’s settlement demonstrates the consequences firms face when they fail to meet their supervisory responsibilities.

What Investors Can Learn from the Case

This case offers critical lessons for all investors:

Check Your Advisor’s Record: Use FINRA BrokerCheck to review disciplinary history, complaints, and employment background.
Monitor Account Activity: Regularly review account statements for unfamiliar transactions.
Beware of Over-Personal Relationships: Excessive trust or personal entanglement can lead to blurred professional boundaries.
Act Quickly if You Suspect Misconduct: FINRA arbitration claims are time-sensitive—typically within six years of the misconduct.

If you suspect unauthorized transactions or unsuitable advice, consult an experienced securities arbitration attorney immediately. Investors may recover losses through FINRA arbitration, even when the advisor is barred or facing criminal charges.

About Iorio Law PLLC

Iorio Law PLLC is a national securities arbitration law firm based in New York, NY, representing investors nationwide in claims against brokerage firms and financial advisors. The firm, led by August M. Iorio, has helped investors recover nearly $100 million in losses through FINRA arbitration, mediation, and litigation.

Mr. Iorio has secured landmark victories, including the first FINRA arbitration award against Robinhood for its 2021 meme-stock trading restrictions and millions in recoveries for GWG L Bond investors.

The firm’s practice focuses exclusively on investor recovery, including cases involving:

Misappropriation and unauthorized trading
Misrepresentation and omissions
Unsuitable investment recommendations and Reg BI violations
Breach of fiduciary duty and failure to supervise
Improper outside business activities and “selling away”

Free Case Evaluation: Recovering from Financial Advisor Misconduct

If you have suffered losses due to financial advisor misconduct, you may have a claim through FINRA arbitration.

At Iorio Law PLLC, we work on a contingency-fee basis—you pay no legal fees unless we recover money for you. Our attorneys conduct thorough investigations, analyze brokerage records, and pursue justice through arbitration or settlement negotiations.

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Merrill Lynch Settles $9.5 Million FINRA Arbitration with Former NFL Pro Bowler Reshad Jones