Merrill Lynch has agreed to pay $1.2 million to former Miami Dolphins cornerback Sean Smith, who alleged last July that a now barred broker "failed to act in his best interest and recommended an unsuitable asset allocation strategy," according to a regulatory filing.
Smith sought $3.5 million in damages from the broker, Isaiah Thomas Williams Jr., who voluntarily resigned from Merrill on Dec. 16, 2024, over allegations related to misappropriation, unsuitable asset allocation, misrepresentations and an improper outside business activity, according to Williams' BrokerCheck profile. The case was settled April 27.
The Financial Industry Regulatory Authority barred Williams on April 11, 2025, for refusing to provide information in connection with its investigation into allegations made by Merrill in Form U4 and U5 filings. The findings stated that Merrill had filed a U4 amendment disclosing a customer complaint that alleged Williams engaged in misrepresentation and improper OBAs.
Williams was arrested in June 2025 for allegedly stealing over $2 million from his client Reshad Jones, former safety for the Miami Dolphins, between May 2020 and April 2024. He was charged with felony grand theft, fraud, money laundering and criminal use of personal information and released on a $1 million bond.
Jones had sought $16 million alleging "misappropriation, unsuitable asset allocation strategy, misrepresentations and an improper outside business activity." Merrill paid $9.5 million to settle the allegations.
After leaving Merrill, Williams co-founded an independent RIA, Bascom Hill Wealth, in Royal Palm Beach, Florida, where he was listed as managing director and CEO. The firm failed to renew its registration in December 2025.
AdvisorHub first reported the settlement earlier Friday.
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