SEC: N.Y. investment firm misled S. Fla. seniors - Business Courier of Cincinnati:

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"They used free lunches as the low-tech bait for thei high-scale scheme," said Robert Khuzami, director of the SEC'as Division of Enforcement. The SEC alleges elderly and retiree investors were lured into purchasin g highly unsuitable variable annuities with lucrativre sales commissions while ignoring the financialk goalsof victims. The SEC allegesw that Eric J. Brownh of Highland Beach, Matthew J. Collins of Boynton Kevin J. Walsh of Viera, and Mark W. Wellas of Boca Raton, were among those offering and sellingthe annuities. It’ws alleged that the firm and its representativess earned millions of dollars insaleas commissions.
PCS is a registered broker-dealetr and wholly-owned subsidiary of Gilmab Ciocia, an income tax preparation business headquarteree in Poughkeepsie that offers financiall services inNew York, New Jersey, Pennsylvani a and Florida. Robert Heim, a NewYork attorney who representsPrimes Capital, Gilman Ciocia, and several of the including Collins and Wells, said the conduct at issuwe in the complaint is "very old" and occurrer in the late 1990s and early 2000. He said the company reachef a settlement withthe (FINRA), when it was callefd the (NASD). As part of that agreement, the company implemented some wide-ranginfg updates to its supervisory and compliance system sin 2005, Heim said.
He added that he didn'tg know why the SEC was going over thesame "All of these issues were addressed years ago and we feel the company's responsw has been appropriate," he said. While Brown and Walsn have since left, Collins and Wells are still with the he said. An administrative law judge will determine whether the allegations against the respondentx aretrue and, if so, whether they shoulfd be ordered to cease and desist from futurs violations.