Former state Rep. Fulton Sheen has been cited by state regulators for selling unregistered securities.
The Michigan Department of Licensing and Regulatory Affairs Corporations, Securities and Commercial Licensing bureau announced today (Friday, June 23) it had issued notices and orders to cease and desist against the Otsego resident.
Sheen formerly served as Allegan County Treasurer and represented most of the county in the state House for six years.
The agency also cited Terry Leverett of Kansas City, Mo., and Shaar 2 LLC, a Missouri-based company with a registered office in Otsego.
The bureau ordered Shaar 2 LLC to cease and desist selling unregistered securities and Sheen and Leverett to cease and desist materially aiding the company in the sale of unregistered securities, contrary to the Michigan Uniform Securities Act.
LARA said it began the investigation after a consumer complaint.
“In order to protect Michigan investors, all securities must be registered or exempt from registration,” said CSCL director Julia Dale. “Investors should ask questions before they invest their hard-earned money and can follow up with CSCL to see if the products and the people selling them are registered.”
According to the state agency, neither Sheen, Leverett nor Shaar 2 are registered in any capacity under the state securities act for which the complaint disclosed violations.
The agency said the complaint included the details that Sheen, Leverett nor Shaar 2 offered and sold securities in the form of investment contracts to a Michigan resident who was 60 years of age or older at the time of sale. The investment contracts were neither exempt from registration nor properly registered.
The LARA orders indicate that the Michigan Securities Administrator intends to impose a $20,000 fine against each of the respondents. The orders also notify the respondents of the right to request a hearing within 30 days.
Sheen did not immediately return calls for comment.
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