On September 23, 2021, the United States Securities and Exchange Commission (“SEC” or “Plaintiff”), represented by Jonathan Stephen Polish at SEC’s Chicago regional office, filed a civil enforcement action against Michael F. Shillin (“Shillin'' or “Defendant”), seeking injunctive relief, payment of civil penalties, and disgorgement of all ill-gotten gains with pre-judgement interest for the alleged wrongdoing of Defendant. This case was filed in the U.S. District Court in the Western District of Wisconsin.
In the complaint Plaintiff alleged that, “Defendant Michael F. Shillin served as an investment adviser to hundreds of clients throughout Wisconsin and beyond. Shillin regularly told his clients he was their fiduciary. They, in turn, entrusted him with their hard- earned savings. Shillin systematically betrayed their trust, plying them with lies. Too often, the results were devastating. Shillin, in the course of selling a life insurance policy, told his client it contained a long-term care benefit. The client, now suffering from stage IV cancer, learned there was no such policy or benefit only after his diagnosis.”
Plaintiff also alleged that, “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. 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.”
There are three claims for relief laid down by Plaintiff. The first claim is for the alleged violation of Section 17(a) of the Securities Act. The second claim is for the alleged violation of Section 10(b) of the Exchange Act, and Exchange Act Rule 10b-5. The third claim is for the alleged violation of Advisers Act Sections 206(1) and 206(2).
In its prayer for relief Plaintiff has requested the court to permanently enjoin Defendant, his officers, agents, servants, employees, attorneys, and those persons in active concert or participation with Defendant from, directly or indirectly, engaging in the transactions, acts, practices or courses of business described above, or in conduct of similar purport and object, in violation of Section 17(a) 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. Plaintiff further requested the court to order defendant to disgorge the ill-gotten gains received because of the violations alleged in the complaint, including prejudgment interest, pursuant to Section 21(d)(5) and 21(d)(7) of the Exchange Act, order Defendant to pay civil penalties pursuant to Section 20(d) of the Securities Act, Section 21(d)(3) of the Exchange Act and Section 209(e) of the Advisers Act, issue an order imposing an officer and director bar pursuant to Section 21(d)(2) of the Exchange Act, and grant such other relief as the court deems appropriate.
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Pending - Other Pending
United States Securities and Exchange Commission
Michael F. Shillin
Jonathan Stephen Polish
Attorney at United States Securities and Exchange Commission
175 W. Jackson Blvd., Suite 900
Chicago, IL 60604
JS-44 Civil Cover Sheet
(#1) COMPLAINT against Michael F Shillin., filed by United States Securities and Exchange Commission. (Attachments: #1 JS-44 Civil Cover Sheet, #2 Summons, #3 Summons) (Polish, Jonathan) (Entered: 09/23/2021)
Docket(#1) COMPLAINT against Michael F Shillin., filed by United States Securities and Exchange Commission. (Attachments: #1 JS-44 Civil Cover Sheet, #2 Summons, #3 Summons) (Polish, Jonathan) (Entered: 09/23/2021)Read MoreRead Less
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