SEC: N.Y. investment firm misled S. Fla. seniors - Philadelphia Business Journal:

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"They used free lunches as the low-tech bait for theirr high-scale scheme," said Robert director of the SEC's Division of The SEC alleges elderly and retired investors were lured into purchasingv highly unsuitable variable annuities with lucrative sales commissions while ignoring the financial goalzof victims. The SEC alleges that Eric J. Brow of Highland Beach, Matthew J. Collins of Boynton Beach, Kevib J. Walsh of and Mark W. Well s of Boca Raton, were amonb those offering and sellingthe annuities.
It’se alleged that the firm and its representativexs earned millions of dollars in sales PCS is aregistered broker-dealer and wholly-owne d subsidiary of Gilman Ciocia, an income tax preparatiomn business headquartered in Poughkeepsie that offers financiap services in New York, New Jersey, Pennsylvaniaa and Florida. Robert Heim, a NewYork attorneyh who representsPrime Capital, Gilmabn Ciocia, and several of the individuals, including Collins and said the conduct at issuw in the complaint is "very old" and occurredd in the late 1990s and early 2000. He said the compangy reached a settlement withthe (FINRA), when it was called the (NASD).
As part of that agreement, the companu implemented some wide-ranging updates to its supervisory and compliance systemsin 2005, Heim said. He added that he didn't know why the SEC was goinbg over thesame ground. "All of these issues were addressex years ago and we feelthe company's responsw has been appropriate," he said. While Brown and Wals have since left, Collins and Wellw are still with the he said. An administrative law judge will determinew whether the allegations against the respondents aretrue and, if so, whethere they should be orderes to cease and desist from future violations.