EDWARDSVILLE - Edwardsville residents Russell and Shelley Gilliland are suing Cornerstone Securities investment advisor representative Alan Thomilson for fraudulent misrepresentation.
According to the official court filing, the Gillilands first met Thomilson, who was with OneAmerica Securities, in late 2009. The couple agreed to become Thomilson's advisory clients and would pay him annual assets in exchange for Thomilson acting as their fiduciary in making investment recommendations. At the time, the Gillilands were long-term growth investors who had saved approximately $450,000 and wished for that amount to grow in the market.
Thomilson established two separate brokerage accounts. The first was for Shelley Gilliland and initially was funded with approximately $175,000. The second was a joint account and held approximately $175,000. During this time, Thomilson recommended that the Gillilands invest in a "CD replacement fund" in the amount of $100,000. However, the fund was allegedly an Allianz variable annuity with an income rider, something that Thomilson didn't tell the plaintiffs.
From when the plaintiffs first became his clients until December 2010, Thomilson allegedly used the money in the brokerage accounts to make a series of purchases of individual stocks and bond funds. By the end of 2010, the Gillilands claim to have owned a basket of approximately 19 or so individual, mostly blue-chip stocks and positions in municipal bond funds.
The Gillilands are suing Thomilson for fraudulent misrepresentation/omission, violation of the 1934 Securities Act, negligent misrepresentation, breach of fiduciary duty, violation of 815 ILCS 5/12, and breach of the duty of suitability. They're seeking a collective financial sum of over $250,000 in addition to legal fees and other rewards that the court deems appropriate.