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USA v Shillin, Michael

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency. If the matter is being appealed, it will be noted below.

Michael Shillin, 31, Eau Claire, Wisconsin, is charged with 9 counts of wire fraud and 1 count of bank fraud.  The indictment alleges that Shillin, the owner of a financial advisory company named Shillin Wealth Management (SWM), engaged in a scheme to defraud clients by making misrepresentations to them. 

The indictment alleges that Shillin told his clients that he purchased non-public stock of well-known companies on their behalf and that they had made hundreds of thousands of dollars on these investments, when in fact, Shillin had not purchased the stocks.  It further alleges that Shillin convinced numerous clients to purchase insurance policies by misrepresenting the cost of the policies as well as the benefits, and that Shillin received commission payments on some of these policies.  In addition, the indictment alleges that Shillin provided clients with fraudulent tax documents to make them appear eligible for tax breaks to which they were not entitled. 

 

The indictment also charges Shillin with defrauding a bank by obtaining two loans totaling $462,000 on behalf of SWM by using fraudulent collateral.  The indictment alleges that he provided an account statement showing that SWM owned an account with a balance of over $1.2 million, when in fact a client owned and controlled the account.

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.  The charges against him are the result of an investigation by the Federal Bureau of Investigation, Eau Claire and Altoona Police Departments, and Wisconsin Department of Financial Institutions. 

On August 25, 2022: CHIPPEWA VALLEY FINANCIAL ADVISOR SENTENCED TO 84 MONTHS FOR FRAUD SCHEME

Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Michael Shillin, 33, formerly of Eau Claire, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 84 months in federal prison for orchestrating a scheme to defraud his clients as well as committing bank fraud.  Shillin pleaded guilty to these charges on May 23, 2022. 

Shillin previously had been remanded into custody on April 14, 2022, because he took a vacation to St. Thomas in violation of his terms of pretrial release that forbade him for traveling outside of the State of Wisconsin. 

Shillin worked as a financial advisor with clients throughout the Chippewa Valley and beyond.  He pleaded guilty to a three-part wire fraud scheme in which he (1) misled his clients by telling them that they owned shares of pre-IPO stock in high-profile companies such as Space-X and Palantir; (2) misled his clients into believing they had long-term care insurance policies when they did not; and (3) misled his clients into believing they were eligible for tax benefits when they were not.  As the scheme unraveled, Shillin used fraudulent collateral to obtain two bank loans in the aggregate amount of $462,000 to continue the scheme. 

At sentencing, Judge Peterson emphasized the need to impose a sentence for this “pretty horrifying crime” that reflected the suffering that Shillin inflicted on his victims.  Based on the record at sentencing, Judge Peterson called Shillin “resolutely dishonest” and a “very selfish person.”  He rejected Shillin’s argument that Shillin lied in a misguided attempt to make his clients feel good, but instead stated that Shillin “lied to make [himself] feel good.”  Judge Peterson noted that the victims should not feel bad about being defrauded because they were defrauded by a “highly skilled manipulator” who had “vast experience in deceit.”

Licensing

BBB confirmed that Shillin Wealth Management LLC had not obtained a necessary license from Securities & Exchange Comm.. BBB encourages you to contact the following agency or agencies to confirm this information: - 2029427040