SEC Says Prime Capital Services, Inc. Defrauded Elderly Investors in Florida with “Free” Lunch Seminars and Unsuitable Variable Annuity Sales

美国证券交易委bob200体育员会正在指责经纪交易商Prime Capital Services Inc.，所得税准备业务Gilman Ciocia Inc.和7个人defrauding senior investors在佛罗里达。该机构声称，据称这两家公司以及名称的个人使用了“免费”午餐研讨会，导致了不合适的变量年金的销售，有时还会在佣金中获得数百万美元。

Robert Khuzami, the SEC Enforcement Director, called the free lunches “bait” for the scam. Elderly investors who are persuaded to purchase unsuitable financial products frequently are never able to fully recover their financial losses, which can severely deplete their retirement savings.

In addition to cease and desist proceedings against the respondents, the SEC is seeking remedial action, including civil penalties and disgorgement. According to the attorney representing PCS, Gilman, PCS President Michael P. Ryan, CCO Rose M. Rudden, one of the registered representatives, and one of the supervisors, the conduct under question occurred in the late ’90’s and 2000’s and has been remedied for some time. The respondents plan to defend themselves against the charges.

SEC investigators say the seniorinvestment fraud scamoccurred between November 1999 and February 2007 and that during appointments conducted with seminar participants, PCS representatives either left out important information or made misrepresentations about variable annuities. For example, PCS representatives are accused of telling investors they would have unrestricted access to the money they invested but did not tell them that there would be substantial charges if they withdrew their money early.

SEC声称，代表在销售变量年金时的委员会为6％。他们对其他投资产品的委托仅为3％。该机构还声称，瑞安（Ryan）和许多主管忽略了实施PC的监督程序，以确定何时发生不当行为，并防止经纪人的不当行为发生。

Related Web Resources:
Read the SEC’s Order（PDF）

“Free-Lunch” Seminars Still Baiting Seniors, Retirement Income Journal, July 15, 2009
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