Former NBA Player Says Merrill Lynch Stole $17M From His Account

Former NBA No. 1 draft pick Kwame Brown is suing Merrill Lynch, alleging that the brokerage stole more than $17 million from his accounts.

Brown’s suit, filed in California state Superior Court in Los Angeles on Thursday, names Merrill Lynch, Bank of America and his advisor, Michelle Marquez, as defendants, alleging fraud, breach of fiduciary duty and breach of contract. According to the suit, Marquez is a Los Angeles-based advisor with Merrill Lynch.

Brown alleges that his signature was forged on authorization forms and agreements giving his financial advisor discretion over his accounts, resulting in the loss of about $17.4 million deposited with Bank of America and Merrill Lynch.

Brown, a 6-foot, 11-inch center, was selected as the first pick of the 2001 NBA draft by the Washington Wizards, becoming the first top pick to be selected straight out of high school. During his 12-year career, he played for seven different teams, including the Wizards and the Los Angeles Lakers. Throughout his career, he earned nearly $64 million in salary.

Brown became a Merrill Lynch client in 2005, according to the suit, choosing to allow all of his financial matters to be handled by Merrill Lynch and Marquez with the stipulation that investment and trade decisions would only be executed with his consent. Over the next 13 years, the defendants handled all of his NBA income and his investments.

Brown alleges that Marquez began overseeing his account and began investing and trading his assets without permission. According to the suit, Marquez opened bank accounts under Brown’s name without his knowledge and without giving him access to the accounts.

Marquez is alleged in the lawsuit to have made deposits, investments and trades while collecting commissions for herself. In addition, Marquez allegedly failed to pay off a $1.1 million construction loan taken by Brown in 2006 in an expedient manner, instead converting the unpaid debt to a line of credit. Brown alleges that Marquez used the line of credit to conduct financial trades, causing financial losses.

In 2017, Brown attempted to contact Marquez and was unable to reach her. Another representative of Merrill Lynch or Bank of America allegedly told him that he had no money invested with Merrill Lynch after he requested an accounting of his investments, according to the lawsuit.

The representative allegedly told Brown that he had signed authorizations giving advisors discretion over his accounts in 2010, but Brown claims that forensic handwriting experts have determined that the signatures were forged.

In his suit, Brown seeks compensatory and punitive damages with prejudgment interest.