Former Michigan State Representative, Fulton Sheen, Under Investigation for Securities Fraud
Earlier this year, the Michigan Department of Licensing and Regulatory Affairs (LARA), Corporations Securities & Commercial Licensing Bureau (CSCL) issued notices and orders to cease and desist against Shaar 2, LLC, to cease and desist from selling unregistered securities.
Shaar 2, is a Missouri-based company with a registered office in Ostego, MI. Cease and desist orders were also filed against former state representative, Fulton Sheen of Ostego, MI, and Terry Leverett of Kansas City, MO, from materially aiding the company and the sale of unregistered securities, contrary to the Michigan Uniform Securities Act (MUSA).
Fulton Sheen served as the 80th District State Representative from 2003 to 2009.
He was also a former Allegan County Treasurer in 1996 and again in 2000. From 1989 to 2012, Fulton owned and operated Sheen Financial, an advisory and investment firm.
The disclosed violations of MUSA show that Fulton and Leverett offered and sold securities in the form of investment contracts. The investment contracts were not registered under the MUSA nor where they are exempt from registration. This investigation was prompted by consumer complaints.
Currently, the Michigan securities administrator is imposing a $20,000 fine against each defendant. Leverett and Sheen have been notified of the right to request a hearing. Violation of MUSA or an order issued under that Act is guilty of a felony and may include imprisonment up to 10 years or a fine of not more than $500,000 per violation, or both.
If you have questions about investment fraud, financial schemes, broker misconduct, or about your broker’s management of your account, please contact our Law Firm at 313-334-7767 for a Free case evaluation.