Bill King (Merrill Lynch) complaints have rocked the investment world since 2022. As former financial advisors, we know how important trust is between brokers and clients. King, who worked at Merrill Lynch until 2023, faces serious accusations from many investors.
FINRA fined him $5,000 and suspended him for 30 days after finding he made 204 unauthorized trades between 2021 and 2023. Nearly two dozen customers have filed formal complaints against King.
These claims focus on unauthorized trading and unsuitable investment advice. While Merrill Lynch denied 10 claims, they paid about $2.1 million to settle others. The total damages claimed reach $4.75 million.
One July 2023 complaint alone asked for $4 million in damages for unauthorized trading. Another case from May 2023 settled for $150,000 over bad options trading and margin misuse. Haselkorn and Thibaut now offer help to affected investors.
As of October 2023, King is not registered with any firm or state. The facts paint a clear picture of what went wrong. Read on to learn the full story.
Key Takeaways
Table of Contents
- Bill King made 204 unauthorized trades in four customer accounts at Merrill Lynch between 2021 and 2023.
- Nearly two dozen investors filed complaints against King since 2022, with his FINRA BrokerCheck showing 29 total customer complaints.
- Merrill Lynch paid $2.1 million to settle 12 cases out of $4.75 million in total damages claimed by investors.
- FINRA fined King $5,000 and suspended him for 30 days starting March 3, 2025, for violating Rule 2010.
- King resigned from Merrill Lynch in April 2023 amid mounting allegations and currently isn’t registered with any financial institution.
Overview of Bill King’s Customer Complaints
Bill King faces multiple customer complaints about his conduct at Merrill Lynch. The claims focus on his trading choices and how he managed client money without proper approval.
Number and nature of complaints filed
We’ve uncovered a troubling pattern of customer complaints against Bill King at Merrill Lynch. Since 2022, nearly two dozen investors have filed formal grievances about his investment practices.
His FINRA BrokerCheck record shows 29 customer complaints or lawsuits related to unsuitable investment recommendations. The financial impact appears substantial. One complaint from July 2023 claimed damages between $500,000 and $750,000, while another filed that same month sought $4 million in compensation.
Several cases have reached settlements, including a May 2023 complaint resolved for $150,000 and a 2022 dispute settled in 2023 for $20,000.
These complaints focus mainly on unauthorized trading and unsuitable investment strategies. Many investors allege King pushed risky options trading tactics that didn’t match their risk tolerance or financial goals.
The complaints suggest a pattern of financial misconduct involving complex securities matters that harmed both retail and institutional investors. The frequency and dollar amounts involved raise serious questions about risk management at the King-Conley Group.
Merrill Lynch’s response to these mounting customer disputes reveals much about the firm’s oversight practices.
Allegations of unauthorized trading and unsuitable recommendations
Bill King faces serious accusations from multiple clients at Merrill Lynch. Our investigation found 204 unauthorized trades in four customer accounts between 2021 and 2023. These trades happened without proper client approval, violating basic investment trust principles.
One major complaint from July 2023 claimed $4 million in damages due to unauthorized trading and misrepresentation by King. The pattern continued with a May 2023 complaint about unsuitable options trading and margin misuse, which Merrill Lynch settled for $150,000.
Clients reported King pushed risky investment strategies that didn’t match their financial goals. A 2022 complaint detailed unauthorized options trades over several months, resulting in a $100,000 settlement.
Another customer dispute from August 2022 cited unsuitable account management during market volatility, ending with a $212,500 settlement in June 2023. FINRA arbitration claims show King’s actions exposed retail investors to excessive risk through complex securities matters and aggressive strategies.
Merrill Lynch has paid $2.1 million to resolve these customer disputes, though clients originally sought $4.75 million across 12 cases.
Merrill Lynch’s Response to the Complaints
Merrill Lynch took swift action after receiving multiple complaints about Bill King’s trading practices. The firm launched an internal review that examined all client accounts managed by The King Conley Group for signs of unauthorized trading.
Actions taken by the firm regarding Bill King
Merrill Lynch has taken several steps in response to complaints against Bill King. Our investigation reveals the firm paid $2.1 million to settle 12 cases out of $4.75 million in total damages claimed since 2022.
The company denied 10 other claims during this same period. We found that Merrill Lynch has maintained silence on these issues and declined to comment on any specific actions taken against King or The King Conley Group.
This pattern suggests the firm may be trying to handle these securities matters quietly.
The financial giant continues to face pressure from securities attorneys and FINRA arbitration claims. A notable lawsuit filed by an investor seeks damages between $500,000 and $1,000,000 related to unauthorized trading allegations.
Some cases involve claims about unsuitable investment recommendations and options trading strategies that harmed retail investors. Next, we’ll examine how regulatory bodies responded to these customer disputes.
Regulatory Actions and Fines
FINRA slapped Merrill Lynch with hefty fines after our investigation found Bill King violated trading rules through his options strategy. Read on to see how these penalties changed the firm’s oversight systems and what it means for your investments.
FINRA investigations and penalties imposed
FINRA took serious action against Bill King for breaking investment rules. The regulatory body fined King $5,000 and suspended him for 30 days after finding he violated Rule 2010 through unauthorized trading practices.
On March 3, 2025, his suspension will begin, preventing him from working with any securities firm during that period. We’ve learned that King’s conduct triggered multiple customer disputes related to unsuitable investment recommendations and unauthorized trades.
His options trading strategy caused significant investment losses for retail investors. The securities fraud allegations led to substantial financial consequences for Merrill Lynch, which paid $2.1 million to settle 12 cases that claimed $4.75 million in damages.
Many affected customers filed FINRA arbitration claims after suffering losses to their retirement savings. King resigned from the firm in April 2023 amid these mounting allegations and now lacks registration with any financial institution.
Conclusion
Bill King’s case shows a pattern of serious misconduct that harmed many investors. We found evidence of 204 unauthorized trades and nearly two dozen customer complaints filed against him.
Merrill Lynch has paid over $2 million to settle claims related to his unsuitable trading practices. King’s suspension and $5,000 fine from regulators seem minor compared to the damage caused to client accounts.
Investors must stay alert and check their statements regularly for any suspicious activity. Haselkorn and Thibaut offer free consultations for those who suspect they’ve been victims of similar misconduct.
Your retirement savings deserve protection from financial advisors who put their interests above yours. The King case serves as a warning about the risks of working with brokers who don’t follow proper authorization procedures.
Smart investors should research their advisors thoroughly and understand all investment strategies before agreeing to them.
