Shillin has forty-four total disclosures on his BrokerCheck report.
Michael Shillin (CRD#: 5927156) was registered as a broker of Alliance Global Partners (“AGP”) from 2018 until 2020. Previously, Shillin was registered as a broker with Raymond James Financial Services from 2014 until 2018. We previously reported on Shillin in March of 2021. Since then, Shillin has been charged by the SEC with violating Sections 17(a)(1), 17(a)(2), and 17(a)(3) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act.
The SEC’s allegations allege that Shillin served as an investment adviser to hundreds of clients and regularly assured them that he was acting as their fiduciary. They, in turn, entrusted him with their hard-earned savings. The SEC alleges that Shillin systematically betrayed his clients’ trust, plying them with lies. Too often, the results were devastating.
Shillin, in the course of selling a life insurance policy, told one client it contained a long-term care benefit. The client, now suffering from an illness, learned there was no such policy or benefit only after his diagnosis. Another client decided to retire early upon learning from Shillin that he was $450,000 richer. Shillin had explained the money was the profits from Shillin’s purchase of Space Exploration Technologies Corp. or “SpaceX” stock for the client. Only later did the investor learn the truth: The SpaceX stock and the resulting nest egg were figments of Shillin’s deception. According to the SEC, these are only two examples of Shillin’s myriad lies and the resulting suffering they have caused so many of his clients. Shillin went to great lengths to deceive his clients. He even set up an online portal for his clients to monitor their portfolio of securities and profits – much of which, as we now know, were pretend.
Shillin has forty-four disclosures on his BrokerCheck report.
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February 2021 Customer Dispute
Status: Pending
Allegations: Client stated that Mr. Shillin told him that he owned pre-IPO shares of SpaceX, even though the client did not pay for those securities and does not own them.
Damage Amount Requested: $7,500.00
February 2021 Customer Dispute
Status: Pending
Allegations: Clients stated that Mr. Shillin made misstatements about the taxability of withdrawals from IRA accounts, resulting in tax issues for the clients. Clients also stated that Mr. Shillin told them that they owned pre-IPO shares of SpaceX, even though the clients did not pay for those securities and does not own them.
Damage Amount Requested: $145,000.00
February 2021 Customer Dispute
Status: Pending
Allegations: Clients stated that Mr. Shillin made misstatements about the taxability of withdrawals from an annuity and accounts at AGP, resulting in tax issues for the clients.
Damage Amount Requested: $5,000.00
February 2021 Customer Dispute
Status: Pending
Allegations: Clients stated that Mr. Shillin misrepresented the features of insurance policies which appear to have been purchased before Mr. Shillin’s employment with AGP. Clients also stated that Mr. Shillin mismanaged their retirement funds resulting in poor investment performance.
Damage Amount Requested: $5,000.00
February 2021 Customer Dispute
Status: Pending
Allegations: Client stated that Mr. Shillin recommended an IRA rollover that caused a taxable event, and that Mr. Shillin charged management fees that were higher than the amount that had been agreed upon. Client also stated that Mr. Shillin told him that he owned pre-IPO shares of SpaceX and Palantir, although it does not appear that the client ever purchased those shares. Further, client stated that Mr. Shillin lied about creating a living trust for him.
Damage Amount Requested: $5,000.00
January 2021 Customer Dispute
Status: Pending
Allegations: Client stated that Mr. Shillin provided them with an inaccurate, falsely inflated value of pre-IPO shares of SpaceX that had been purchased by the client.
Damage Amount Requested: $5,000.00
January 2021 Customer Dispute
Status: Pending
Allegations: Client was told by Mr. Shillin he had purchased pre-IPO shares of SpaceX and Palantir. The client did not pay for these securities, and does not own them. The client further stated that Mr. Shillin gave him poor advice about the amount of money he could remove from his account per month.
Damage Amount Requested: $5,000.00
January 2021 Customer Dispute
Status: Pending
Allegations: Clients indicated they are having tax and insurance issues based on Mr. Shillin’s advice. Clients indicated Mr. Shillin provided a falsified 1099 for 2019 in an attempt to coverup his bad advice.
Damage Amount Requested: $30,000.00
January 2021 Customer Dispute
Status: Pending
Allegations: Clients stated that (a) they retired in 2015 and 2016, and made other financial decisions, based on misrepresentations made by Mr. Shillin about their financial situation and account balances; (b) Mr. Shillin recommended that they cash in a paid insurance product to fund a different policy, and that this policy has lapsed due to Mr. Shillin’s misrepresentations, and (c) Mr. Shillin told them they owned pre-IPO shares of SpaceX and Palantir, even though the clients did not pay for those securities and do not own them.
Damage Amount Requested: $5,000.00
January 2021 Customer Dispute
Status: Pending
Allegations: Client stated that he was supplied with a falsified 1099 by Mr. Shillin which caused tax and other issues, including with the receipt of a federal stimulus check. Client also stated that Mr. Shillin misrepresented Enterprise Zone formation and associated taxation. Client also stated that Mr. Shillin told him he owned pre-IPO shares of SpaceX and Palantir, even though the client did not pay for those securities and does not own them.
Damage Amount Requested: $5,000.00
January 2021 Customer Dispute
Status: Pending
Allegations: Client stated that he was supplied with a falsified 1099 from Mr. Shillin which caused tax issues. Client further stated he based retirement decisions on Mr. Shillin’s misrepresentations about his financial status. Client also stated that Mr. Shillin told him that he had purchased pre-IPO shares of SpaceX and Zoom.
Damage Amount Requested: $300,000.00
January 2021 Customer Dispute
Status: Pending
Allegations: Clients stated that they retired based on false information that Mr. Shillin provided to them as to the value of their accounts in 2014. Clients also stated that Mr. Shillin misled them about the source of their monthly distributions by stating that they represented income on their investments, when they appear to have been disbursements of the principal in their accounts.
Damage Amount Requested: $5,000.00
January 2021 Customer Dispute
Status: Pending
Allegations: Clients stated that Mr. Shillin misrepresented the features of an insurance policy they purchased in 2015 (while at a different firm). The clients indicated they were misled about the source of distributions from their accounts at AGP. The clients further indicated that they had tax issues based on bad advice from Mr. Shillin, and that Mr. Shillin reimbursed them for those amounts. Clients also stated that Mr. Shillin told them they owned pre-IPO shares of Spacex. It does not appear that the clients ever paid for the shares of SpaceX.
Damage Amount Requested: $5,000.00
January 2021 Customer Dispute
Status: Pending
Allegations: Clients stated that they have tax, insurance, social security, and related issues arising out of falsified 1099s provided by Mr. Shillin. Clients also stated that Mr. Shillin told them they owned pre-IPO SpaceX shares. It does not appear that the clients ever paid for the shares of SpaceX shares.
Damage Amount Requested: $50,000.00
January 2021 Customer Dispute
Status: Pending
Allegations: Client stated that Mr. Shillin misrepresented the features of a life insurance product purchased in 2014 while Mr. Shillin worked for Edward Jones. Client further indicated that Mr. Shillin misrepresented that monthly ACH deposits were coming from a life insurance company when they were coming from the client’s own funds. Client also stated that Mr. Shillin told him he owned pre-IPO SpaceX shares, and that he was provided a falsified 1099. It does not appear that the client ever paid for the shares of SpaceX.
Damage Amount Requested: $5,000.00
January 2021 Customer Dispute
Status: Pending
Allegations: Client stated that Mr. Shillin provided bad advice in regard to taking distributions from an IRA account, and provided poor advice regarding his business. Client also stated that Mr. Shillin told him he owned pre-IPO SpaceX shares. It does not appear that the client ever paid for the shares of SpaceX.
Damage Amount Requested: $5,000.00
December 2020 Customer Dispute
Status: Pending
Allegations: Client indicated that Mike Shillin attempted to switch his (and separately his wife’s) life insurance from State Farm to John Hancock in July 2018. His wife’s policy was switched, but the documentation Client received regarding his policy switch appears to be falsified as John Hancock indicated to him that he had no policy with John Hancock, and the policy number was not for Client (He discovered this fact recently). A check drawn from State Farm for $29,658.78 was deposited into Client’s joint brokerage account in April 2019. The money stayed in the account; and was not used to pay for any insurance policy. A review of Firm emails indicates Client was rejected for the policy in underwriting, but Mr. Shillin did not relay this information to Client. Client provided copies of multiple texts from Mr. Shillin which stated Client had a valid policy with John Hancock. He also provided copies of John Hancock documents he received directly from Mr. Shillin.
Damage Amount Requested: $30,000.00
November 2020 Customer Dispute
Status: Pending
Allegations: Complaint alleges that Mr. Shillin told [REDACTED] that he had purchased shares of SpaceX Series G Founders Shares in October 2019 or December 2019. Client further alleges the investment was for $20,000 (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.
Damage Amount Requested: $5,000.00
November 2020 Investigation
Initiated By: FINRA, Dept of Enforcement
Description of Investigation: To determine whether violations of the federal securities laws or FINRA, NASD, or MSRB rules have occurred.
October 2020 Customer Dispute
Status: Settled
Allegations: The client alleged that Mr. Shillin made misrepresentations relating to the amount and source of expected dividends in his account.
Damage Amount Requested: $20,000.00
Settlement Amount: $22,991.67
October 2020 Employment Separation After Allegations
Firm Name: AGP
Termination Type: Voluntary Resignation
Allegations: Mr. Shillin resigned while under investigation for (a) creation and alteration of documents and e-mails designed to show the existence of a long term care (LTC) insurance policy in favor of a “beneficiary” who was not a client of the Firm, when in fact, that policy did not exist, and (b) for directly making a series of payments to the “beneficiary” of the non-existent LTC policy. In addition, Mr. Shillin made material misstatements and provided falsified/altered documents to Firm personnel during the investigation in an apparent effort to explain the situation. The investigation to date has not uncovered any evidence of diversion of funds.
October 2020 Employment Separation After Allegations
Firm Name: AGP
Termination Type: Voluntary Resignation
Allegations: Supposed violation concerning insurance product providing for long-term care.
May 2018 Employment Separation After Allegations
Firm Name: Raymond James Financial Services, Inc.
Termination Type: Discharged
Allegations: Failure to follow firm directive regarding the payment of client CPA fees.
The Sonn Law Group is currently investigating allegations surrounding Michael Shillin. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.
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