RSS

Annuity Watch

Free lunch + fraudulent variable annuties = SEC charges

The SEC has alleged that four employees of Prime Capital Services were pushing fraudulent variable annuities on unsuspecting seniors. Not surprising was the vehicle the alleged scammers used to gain the trust of the seniors -- a free-lunch seminar. From Directorship.com:

The SEC alleges that Prime Capital Services (PCS) recruited elderly investors to seminars in which a free lunch was provided, seminars which revolved around the sale of variable annuities. After the lunch, seminar attendees were persuaded to schedule one-on-one appointments in which representatives from PCS pitched the annuities.

PCS representatives allegedly concealed high costs, lock-in periods, and other information relating to the sales contracts.

It's actions like these alleged ones that give all annuities a bad name. And it's why we focus on selling fixed annuities. No high commissions. No high costs. And no reason to not fully disclose the terms. Yet things like this happen. It's one of the reasons we wrote our free eBook, How To Avoid The Seven Mistakes Annuity Investors Make. Download it today!