These actions stems from an SEC finding that from November 1999 through February 2007 four representatives associated with PCS and employed by Gilman fraudulenty sold variable annuities to senior citizen customers. The investments were highly unsuited for persons that age and the SEC found the representatives misrepresented the annuities and omitted important facts and that the limited access to principal was against some clients' expressed wishes.

As a result, PCS was ordered to pay a total of $144,262.58 in disgorgement and prejudgment interest and Gilman, $450,001 in disgorgement and civil penalties. A fund administrator will determine losses suffered by investors, along with any costs, such as attorney fees, incurred in pursuing complaints against the companies. Investors will be paid on a pro rata basis for charges for the investments and if funds are left over, they will be repaid for expenses, also on a pro rata basis.

Earlier this year, the SEC issued a one-year suspension to Christie A. Andersen, who had been chief compliance officer at the Boca Raton, Fla., branch office. The representatives, Eric Brown, Matthew Collins, Kevin Walsh and Mark Wells were ordered to disgorge respectively, $41,992, $2,915, $24,790 and $6,609.

Each was ordered to pay a civil penalty of $130,000 and all were barred from association with any broker, dealer, or investment adviser; ordered to cease and desist from violations of the antifraud and books and records provisions of SEC laws.