According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Michael Shillin (Shillin), previously associated with A.g.p. / Alliance Global Partners, has at least 5 disclosable events. These events include 4 customer complaints, one regulatory event, alleging that Shillin recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $455,923.90 on October 13, 2022.
Six former clients of Shillin allege misrepresentations made by Shillin regarding the purchase of SpaceX stock that, in fact, they never purchased. Claimants are seeking damages in the form of profits they allegedly would have earned if that purchase had been made by Shillin on their behalf.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $150,000.00 on February 23, 2022.
AGP, through its registered representative Michael Shillin, indicated that Mr. and Mrs. [REDACTED] purchased shares in certain pre-IPO stocks. However, the shares of these certain pre-IPO stocks were never purchased.
FINRA BrokerCheck shows a final customer complaint on January 07, 2022.
The Securities and Exchange Commission (\\u201cCommission\\u201d) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (\\u201cExchange Act\\u201d) and Section 203(f) of the Investment Advisers Act of 1940 (\\u201cAdvisers Act\\u201d) against Michael F. Shillin. The Commission finds that: On November 18, 2021, a judgment was entered by consent against Shillin, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 (\\u201cSecurities Act\\u201d), Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Michael F. Shillin, Civil Action Number 3:21-cv-00601, in the United States District Court for the Western District of Wisconsin. The Commission\\u2019s complaint alleged that, in connection with the sale of securities, Shillin made numerous material misrepresentations to at least 100 advisory clients to entice them to place or keep their funds under his advisory management. Shillin\\u2019s misrepresentations were wide-ranging, and included misstatements and omissions of material fact regarding the nature of his clients\\u2019 investments; false claims that he had invested clients\\u2019 funds in initial public offerings (\\u201cIPOs\\u201d) or pre-IPO stocks; false claims about the value of clients\\u2019 portfolios; and misstatements regarding Shillin\\u2019s termination from a previous employer. On January 22, 2021, the Wisconsin Department of Financial Institutions \\u2013 Division of Securities issued a summary order permanently barring Shillin from registration and from making or causing to be made in or from Wisconsin to any person or entity any further offers or sales of securities unless and until such securities qualify as federal covered securities, among other prohibitions. In the Matter of Michael F. Shillin et al., DFI Case No. S-242215. The Wisconsin Order found that Shillin\\u2019s investment clients reported misconduct by Shillin, including but not limited to misrepresenting the amount and source of expected dividends from investments, and misleading investors into believing they had purchased investments in various securities.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $1,000,000.00 on December 29, 2021.
Each claimant alleges at least of the following: former RR misrepresented that he bought private securities in claimants’ accounts when he did not actually buy them and presented claimants with documentation, including texts that led them to believe the securities had been bought; misrepresented that withdrawals from claimants’ accounts were non-taxable when they were actually taxable; incorrectly advised claimants they could retire based on the performance of their portfolios. Bought securities for Claimants that he was not authorized to buy; misrepresented the premiums owed for life insurance; AND improperly advised claimants to obtain margin.
FINRA BrokerCheck shows a settled customer complaint with a damage request of $1,000,000.00 on December 29, 2021.
Each claimant alleges one or more of the following: that former FA misrepresented they bought securities in claimants’ accounts when he did not actually buy them and presented claimants with documents that led them to believe the securities had been bought; bought securities for Claimants that he was not authorized to buy; misrepresented the premiums owed for life insurance; incorrectly advised claimants on how much they could withdraw from their accounts to live on; improperly advised claimants to obtain margin; and/or incorrectly advised claimants they could retire based on the purported performance of their investments.
When your financial advisor is providing advice they must adhere to the SEC’s Regulation Best Interest (Reg BI) rule and standard of care. Reg BI replaced the former “suitability” rule and created a ‘best interest’ standard for brokerage firms and registered representatives. Reg BI applies when brokers recommend a retail investor engage in securities transaction or an investment strategy involving one or more securities. Reg BI also applies to financial advice concerning the transfer of funds and opening of accounts. This Reg BI standard of care applies to registered representatives making recommendations to customers in the purchase, sale, or exchange of securities or the implementation of investment strategies involving securities and non-securities. The rule also applies to the handling of opening accounts such as account transfers and types of accounts being recommended to be opened.
Another aspect of the care obligation is focusing on the client’s specific needs which brokers must reasonably understand through obtaining information for the client’s investment profile. In completing a customer’s investment profile the advisor should include information such as the investor’s investment time horizon; liquidity needs; risk tolerance; experience with various investment vehicles; investment objectives and financial goals; assets and debts including outside investment accounts; marital status; tax information; age; and other relevant information that may be individual to the investor that the advisor would need to know to properly render advice or provide services. Reg BI was meant to enhance the duties that registered representatives have to their clients by applying fiduciary principles to transactions and investment strategies by prohibiting brokers from placing their own financial interests ahead of the best interests of their client – the investor. There are several different aspects of the rule that brokers must comply with. One of which is the care obligations which require brokers to form a reasonable belief that their investment advice and recommendations are in the retail investor’s best interest. The care obligations include three components. First, the advisor must have an understanding of the potential risks, rewards, and costs associated with a product, investment strategy, account type, or series of transactions.
The care obligation also requires the broker to address the client’s specific needs through obtaining specific investment profile information on the client. The associated person typically will ask the customer for information such as the investor’s risk tolerance or ability to withstand account value declines or increases; experience with investments available; investment objectives and goals; investment time horizon; liquidity needs; assets such as investment accounts held at other financial institutions; tax information; their age and retirement plans; and other information that a customer may want to provide to the advisor to help them to properly address the services needed. Using the foregoing information, the associated person then must consider reasonably available investment option to accomplish the investor’s goals as well as alternative investment options that may be cheaper or other important qualities. Finally, the advisor must conclude that there is a reasonable basis to believe that the recommendation being provided is in the investor’s best interest. Finally, an advisor must also analyze the specific account features offered and determine whether their client can benefit from them in order to meet their care obligations. While securities and investments come with costs that must be considered, the type of securities account also has changes the cost equation for the investor and can change the retail customers’ future investment returns. The associated person must consider the different types of securities accounts for their client and determine whether or not the cost or features are reasonably needed for the client or if the customer’s current account costs and features are superior to solutions available to the advisor. In any event, the type of account and services recommended must be in the investor’s best interest.
Shillin has been in the securities industry for more than 9 years. Shillin has been registered as a Broker with A.g.p. / Alliance Global Partners since 2018.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.