The SEC alleged that the company, PCS and two representatives engaged in fraudulent sales of variable annuities to senior citizens and that CEO Michael P. Ryan and chief compliance officer Rose M, Rudden and two of the representatives failed to supervise variable annuity transactions. Gilman said it has accrued $344,000 as of September 3 as a reserve for potential fines and disgorgement of profits related to the order.

For the third quarter ended September 30, the company loss $860,000, down from $696,000 a year earlier. Revenue for the most recently ended period was $9.2 million, down 12.1 percent from $10.4 million. Brokerage commission revenue dropped to $6.3 million, down 9.1 percent from $6.9 million. Insurance commissions dropped 3.7 percent to $261,000 from $381,000 a year earlier. Advisory fees fell to $1.8 million, down 22.2 percent from $2.3 million.

However, because of the two acquisitions last year, fees from tax preparation and accounting fees rose 6.2 percent to $679,000 from $648,000.