Alliance Global Partners Advisor Michael Shillin Barred from Securities Industry
Wisconsin Advisor Michael Shillin charged with Defrauding 100 Advisory Clients
The White Law Group continues to investigate potential securities claims involving Michael Shillin and Alliance Global Partners. The firm has received numerous calls from investors who have allegedly suffered financial losses investing with Shillin and Shillin Wealth Management.
Update October 28, 2021 – Michael Shillin Indicted on Federal Criminal Fraud Charges
The U.S. Department of Justice has reportedly charged Michael Shillin, of Shillin Wealth Management, with nine counts of wire fraud, and one count of bank fraud on October 27, 2021.
According to the indictment, Shillin allegedly defrauded clients by making misrepresentations to clients by telling them 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. Shillin also allegedly persuaded clients to purchase insurance policies by purportedly misrepresenting their costs and benefits, some of which he received commission on.
The bank fraud charge reportedly stems from allegations that Shillin obtained 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.
SEC files Charges against Advisor Michael Shillin
According to a press release, the Securities and Exchange Commission on September 23, filed a litigated action charging financial advisor Michael F. Shillin, of Appleton, Wisconsin, with defrauding at least 100 investment advisory clients.
Shillin allegedly made misrepresentations to his advisory clients, many of whom were elderly. The SEC alleges that Shillin falsely told certain clients that they had successfully subscribed for IPO or pre-IPO shares in high-profile companies when they had not, and purportedly lied to clients about the true value of their investment portfolios, according to the complaint.
Further, Shillin allegedly recommended several advisory clients roll over their existing life insurance policies into new policies, which caused certain clients to sell securities in order to pay premiums for policies that were non-existent or had far fewer benefits than Shillin allegedly claimed. Shillin reportedly received hundreds of thousands of dollars in ill-gotten gains as a result of his allegedly fraudulent conduct.
The SEC is seeking injunctive relief, disgorgement with prejudgment interest, a civil penalty, and a bar against Shillin serving as an officer or director of a public company, according to the press release.
FINRA Bars Michel Shillin after Customers File 37 Complaints for Misrepresentation
On December 18, 2020, The Financial Industry Regulatory Authority (FINRA) reportedly barred Shillin (CRD#: 5927156, Altoona, WI) from association with any FINRA member in all capacities after he purportedly refused to appear for on-the-record testimony. FINRA reportedly launched an investigation after his member firm 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.”
On October 5, 2020, A.G.P. / Alliance Global Partners filed a Form U5 stating that Shillin had allegedly resigned while under investigation for creating and altering documents and e-mails “designed to show the existence of a long term care (LTC) insurance policy” that did not exist, for “directly making a series of payments to the ‘beneficiary’ of the non-existent LTC policy,” and for making “material misstatements and provid[ing] falsified/altered documents to Firm personnel during the investigation in an apparent effort to explain the situation,” according to the AWC.
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 Alliance Global Partners in Altoona, WI from 2018 until October 2020. Previously, he was registered with Raymond James in Chippewa Falls, WI for 4 years until he was discharged for “failure to follow firm directive regarding the payment of client CPA fees,” according to his broker report. He reportedly has 37 customer complaints on his broker record for allegations of misrepresentation.
His broker report indicates that Shillin was the owner of a private label entity for financial services called Shillin Wealth Management since May 2018.
According to his broker report, Shillin was affilated with the following firms during his career in the securities industry:
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
Filing a Complaint against your Brokerage Firm
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, 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.
If you are concerned about investments with Michael Shillin, the securities attorneys at The White Law Group may be able to help you. For a free consultation with an attorney, please call (888) 637-5510.
For more information on the firm’s investigation, please see:
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. For more information, please visit our website, www.whitesecuritieslaw.com.