SEC files Lawsuit Over Excessive Investment Fees
The SEC filed a federal lawsuit June 30 against Ryan Jindra and his company to recover the improper fees. Regulators also asked for an order freezing Jindra's assets and his investors' accounts.
The SEC says Jindra used some of the fee money to pay business debts at his company, some for personal benefit, and some to repay investors who had been charged fees earlier.
The SEC says the fees charged in the past year exceeded what's allowed under the agreements Jindra's investors signed.
Source: http://www.ketv.com/news/19907156/detail.html
Variable Annuity Sales Practices
Yesterday, The Securities and Exchange Commission instituted an enforcement action against Prime Capital Services (PCS), a Poughkeepsie, N.Y.-based firm that is a registered broker-dealer and wholly-owned subsidiary of Gilman Ciocia, Inc. (G&C), an income tax preparation business.
The SEC allege several representatives and supervisors engaged in fraudulent and unsuitable sales of variable annuities to senior citizens who were lured through free-lunch seminars at restaurants in south Florida.
Prime Capital Services (PCS) and its parent company recruited elderly investors to attend the seminars, after which the seniors were encouraged to schedule private appointments with PCS representatives who then induced them to buy variable annuities.
The sales pitches allegedly concealed high costs, lock-in periods, and other material information. While the firm and its representatives earned millions of dollars in sales commissions, the SEC alleges that many of the variable annuities were unsuitable investments for the customers due to their age, liquidity, and investment objectives.
"They used free lunches as the low-tech bait for their high-scale scheme," said Robert Khuzami, Director of the SEC's Division of Enforcement. "These con men lured elderly and retired investors into purchasing highly unsuitable variable annuities, enriching themselves with commissions while ignoring the financial goals of their victims."
James Clarkson, Acting Director of the SEC's New York Regional Office, added, "No investor should be misled into investing in unsuitable products, but fraud against the elderly is especially egregious because they often never recover financially from ill-advised investments that devastate their retirement savings."
Pittman Dutton Kirby & Hellums currently represents individuals and small businesses against brokers, promoters, accountants, and in some cases attorneys, regarding the sale of 412(i) plans. If you have purchased a 412(i) or have any questions about this litigation, please do not hesitate to contact us.
