The company reported a loss of just under $1.1 million, in the most recently ended quarter, up from a loss of $860,000 a year ago. First-quarter revenue was $9.5 million, a 4.2-percent increase from $9.2 million.
Gilman's diversification efforts lagged in the most recently ended quarter as tax and accounting revenue, which represents 7 percent of the total, dropped by 6.8 percent, falling to $633,000, down from $679,000. The SEC filing said the fall off came in accounting services. However, revenue from financial planning services rose to $8.9 million, a 5-percent hike from $8.5 million in last year's corresponding period.
Gilman has also faced the need to pay nearly $600,000 in civil penalties, disgorgement and predjudgement interests assess against the company and its subsidiary Prime Capital Services by the SEC. The levies stem from the SEC's findings that Gilman representatives fraudulently sold variable annuities to the elderly, for which the securities were unsuitable investments. PCS was ordered to payment $144.262.58 in disgorgement and prejudgement interest while the parent company was assessed $450,001 in disagorgement and civil penalties.
The payments were to be made in three installments. After Gilman was late with the second payment, the SEC accelerated the date for the third payment, which the company said it has not yet paid. The company is also indemnifying CEO Michael Ryan and chief compliance officer Rose Rudden for the $65,000 in civil penalties each was assessed for their lack of supervision in the annuities case.
