Bad Investment Advice and Fraud Served Up to Senior Investors at "Free Lunch" Seminars According to SEC Report

Official SEC report confirms that investment seminars targeting senior investors are fraught with fraud, misreprentations and bad investment advice.

Houston, Texas (PRWEB) September 26, 2007 -- As the saying goes, there is no "free lunch." A recent investigation by the SEC of 110 "free lunch" seminars found serious issues with this popular tactic used by investment advisors targeting senior investors. Deficiency letters or letters of caution were sent to 78% of the investment firms investigated. In addition, 23% of the investment firms are under review for possible further investigation or action by a state agency, FINRA or SEC.

As a part of its ongoing effort to protect senior investors, the SEC initiated an investigation of broker-dealers, investment advisors and other financial services firms that offer so-called "free lunch" sales seminars. The detailed report summarizes their findings:

-   Sponsors of "free lunch" offer attractive inducements
-   Senior investors are the target
-   Seminars designed to sell
-   Misleading, exaggerated sales materials are often used
-   Broker firms fail to supervise these seminars
-   Bad investment advice is given leading to unsuitable investments
-   Fraudulent practices including misrepresentations of risk/return, fictitious investments

"We have so many clients who have fallen victim to these sales tactics," said Debra Brewer Hayes, president and CEO of the Hayes Law Firm. "The saddest thing is that they target senior investors, those who can least afford to lose their life savings. Senior investors need to be sure that the 'free lunch' doesn't cost them a bundle." The Hayes Law Firm encourages senior investors and those who have taken early retirement to report investment advisor or broker fraud and to seek damages.

The Hayes Law Firm focuses its practice entirely on representing investors and early retirees who lost money in the stock market. For more information, please visit our Web site at www.dhayeslaw.com to obtain a full copy of the SEC Report. The Firm's informative blog provides educational articles dealing with investor issues at www.aboutbrokerfraud.com.

Contacts:   
Debra Brewer Hayes, CEO      
Phone: 713-862-2152   
   
Charlie Hunter, Attorney      
Fax: 713-861-7466

Address: 1235 North West Loop, Suite 510, Houston, TX 77008
Website: www.dhayeslaw.com

Source: PRWeb: Legal / Law