A former state representative and financial advisor from Otsego has been ordered to cease and desist sales of unregistered securities.
Fulton Sheen, who represented much of Allegan County in the State House of Representatives from 2002 through 2008, along with Terry Leverett of Kansas City, Mo. were both issued notices to cease and desist sales of unregistered securities associated with Missouri-based Shaar 2 LLC, according to a statement from the Michigan Department of Licensing and Regulatory Affairs (LARA).
Shaar 2 is also registered in Otsego, according to state regulatory filings.
The state agency’s Corporations, Securities & Commercial Licensing (CSCL) bureau said that an investigation began after a consumer complaint and alleges that Sheen, Leverett and Shaar 2 were not in compliance with the Michigan Uniform Securities Act (MUSA).
“In order to protect Michigan investors, all securities must be registered or exempt from registration,” CSCL Director Julia Dale said in a statement. “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.”
Sheen has worked as a financial advisor, according to his biography on Michigan Information & Research Service (MIRS).
The state intends to impose a $20,000 fine against each Sheen and Leverett. Both are allowed to request a hearing within 30 days, according to a statement.