Michael Shillin, of Shillin Wealth Management, Indicted on 10 Counts of Fraud
The White Law Group is currently representing investors in securities fraud claims against their brokerage firm involving financial advisor Michael Shillin (CRD#: 5927156,). If you have been a victim of Michael Shillin, the firm may be able to help you recover your financial losses through FINRA arbitration.
According to a press release, the U.S. Department of Justice on October 27, charged Michael Shillin, of Shillin Wealth Management, with nine counts of wire fraud, and one count of bank fraud.
Shillin allegedly defrauded clients by making misrepresentations to them such as telling them that he purchased stock on their behalf and that they had made hundreds of thousands of dollars on these investments, when in fact, Shillin allegedly had not purchased the stocks.
According to the DOJ, Shillin also persuaded clients to purchase insurance policies by purportedly misrepresenting their costs and benefits, some of which he received commission on.
The indictment further charges Shillin with defrauding a bank by obtaining two loans, totaling $462,000, by using allegedly fraudulent collateral.
If convicted, Shillin faces a maximum penalty of 20 years in federal prison on each wire fraud charge, and a maximum penalty of 30 years on the bank fraud charge.
FINRA Bars Michael Shillin from Securities Industry
In December we reported that FINRA barred former advisor Shillin from working in the securities industry after he purportedly refused to appear for on-the-record testimony.
According to a Letter of Acceptance Waiver and Consent (AWC) signed on December 18, 2020, FINRA was reportedly investigating Shillin after his member firm, Alliance Global Partners, filed an amended Form U5 stating that a client had complained that “Shillin made misrepresentations relating to the amount and source of expected dividends in his account.”
Shillin’s most recent member firm, Alliance Global Partners filed a Form U5 stating that Shillin had allegedly resigned while under investigation. The Form U5 is the Uniform Termination Notice for Securities Industry Registration. Broker-dealers, investment advisers, or issuers of securities must use this form to terminate the registration of an individual in the appropriate jurisdictions and/or self- regulatory organizations.
For FINRA’s full findings see FINRA Case # 202006822610.
According to his FINRA BrokerCheck report, Shillin was reportedly registered with the following firms:
05/23/2018 – 10/05/2020, A.G.P. / ALLIANCE GLOBAL PARTNERS (CRD#:8361), Altoona, WI
08/21/2014 – 06/11/2018, RAYMOND JAMES FINANCIAL SERVICES, INC. (CRD#:6694), CHIPPEWA FALLS, WI
07/18/2011 – 08/22/2014, EDWARD JONES (CRD#:250),CHIPPEWA FALLS, WI
Broker Misrepresentations
Of the 37 complaints filed against Shillin, many are allegedly involving Space-X shares and switching of life insurance policies.
On December 9, a customer alleges that Mike Shillin attempted to switch a client’s life insurance policy but kept the payments instead for paying for the new policy. On November 23, a client filed suit alleging that Shillin promised to purchase $25,000 worth of Space-X shares, but instead purportedly only purchased $20,000 of shares “although he alleges that $25,000 was withdrawn from the account; and that Mr. Shillin promised the SpaceX shares would be delivered into client’s account.”
Recovery of Financial Losses
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, such as misrepresentation, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
For more information on the firm’s investigation, please see:
SEC Charges Barred Alliance Global Advisor Michael Shillin with Fraud
Barred Altoona Broker Michael Shillin has 27 Customer Complaints
WEAU: Former Altoona Investment Advisor Barred from Securities Industry
If you have suffered losses investing with Michael Shillin, the securities attorneys at The White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information, please visit our website, www.whitesecuritieslaw.com.
