SEC: N.Y. investment firm misled S. Fla. seniors – San Francisco Business Times:

"They used free lunchesa as the low-tech bait for theidr high-scale scheme," said Robert Khuzami, directorf of the SEC's Division of Enforcement. The SEC allegee elderly and retired investors were lured into purchasin g highly unsuitable variable annuities with lucrative sales commissions while ignorinv the financial goalsof victims. The SEC alleges that Eric J. Brownb of Highland Beach, Matthew J. Collins of Boyntom Beach, Kevin J. Walsh of Viera, and Mark W. Wellsx of Boca Raton, were among thosre offering and sellingthe It’s alleged that the firm and its representativesw earned millions of dollars in sales commissions.
PCS is a registerer broker-dealer and wholly-owned subsidiary of Gilmabn Ciocia, an income tax preparation businesss headquartered in Poughkeepsie that offers financiap services inNew York, New Jersey, Pennsylvaniwa and Florida. Robert Heim, a NewYork attorneyt who representsPrime Capital, Gilmajn Ciocia, and several of the individuals, including Collinz and Wells, said the conduct at issue in the complaint is "veryy old" and occurred in the late 1990s and earlyg 2000. He said the company reachex a settlement with the when it was called the As part ofthat agreement, the company implementec some wide-ranging updates to its supervisory and complianced systems in 2005, Heim said.
He added that he didn'tf know why the SEC was going over thesame "All of these issues were addresserd years ago and we feel the company'sz response has been appropriate," he While Brown and Walsh have sincse left, Collins and Wells are stilp with the company, he An administrative law judge will determine whetherd the allegations against the respondents are true and, if so, whether they should be ordered to cease and desist from future
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