A federal judge has sentenced a former Wisconsin advisor who pleaded guilty to a fraud scheme in which he misled his clients, according to a report by WealthManagement.
33-year-old Michael Shillin of Eau Claire, a former broker with Raymond James Financial and Alliance Global Partners, was sentenced to 84 months in federal prison after pleading guilty on May 23 to a three-part wire fraud scheme.
Prosecutors said Shillin engaged in several misrepresentations that defrauded his clients. He misled the clients by saying they owned shares of pre-IPO stock in high-profile companies such as Space-X and Palantir, misled them into believing they had long-term care insurance policies when they did not, and misled them into believing they were eligible for tax benefits when they were not. Shillin also used fraudulent collateral to obtain two bank loans totaling $462,000 as part of the scheme, according to the charges.
The sentence was handed down by Chief U.S. District Judge James D. Peterson, who said the seven-year term reflected the suffering of the victims of what he called Shillin’s “pretty horrifying crime.” Peterson called Shillin “a highly skilled manipulator” with “vast experience in deceit.”
Shillin was previously barred from the securities industry by FINRA and the Wisconsin Department of Financial Institutions. In a separate action, the Securities and Exchange Commission obtained a partial judgment against him after charging him with anti-fraud violations. He was ordered to pay disgorgement, prejudgment interest and a civil penalty, and was barred from acting as an officer or director of a public company.
The attorneys at Lewitas Hyman are uniquely qualified to represent individual investors in investment-related claims against financial professionals and their firms. Our attorneys understand the financial and emotional ramifications of investment losses caused by financial professionals. If you have suffered losses as a result of misconduct by your financial professional or their firms, contact Lewitas Hyman at (844) 651-2643 or through our online contact form for a free consultation.