On June 30, 2009, the SEC instituted administrative and cease-and-desist proceedings against Prime Capital Services, Inc. (PCS), Gilman Ciocia, Inc. (G&C), Michael P. Ryan, Rose M. Rudden, Christie A. Andersen, Eric J. Brown, Matthew J. Collins, Kevin J. Walsh, Mark W. Wells. According to the SEC: "From approximately November 1999 through February 2007 (the 'relevant period'), representatives associated with Respondent PCS offered and sold variable annuities to senior citizen customers in south Florida. At various times during the relevant period, Respondents Brown, Collins, Walsh and Wells, while associated with PCS and employed by Respondent G&C, were among those offering and selling variable annuities to senior citizens."

On March 16, 2010, the SEC filed an order regarding this matter accepting the offer of settlement submitted by Gilman Ciocia, Inc. and Prime Capital Services, Inc.

On June 10, 2010, the SEC issued an Order Appointing Tax Administrator. The SEC ordered the appointment of Damasco and Associates LLP, a certified accounting firm located in Half Moon Bay, California, as tax administrator for the Qualified Settlement Fund in the administrative proceeding.

On September 23, 2010, the SEC filed a Notice of Proposed Plan of Distribution and Opportunity for Comment.

On March 16, 2010, the SEC issued a Proposed Plan of Distribution. Previously, on March 16, 2010, the SEC issued an order making findings and imposing remedial sanctions as to Prime Capital Services, Inc. and Gilman Ciocia, Inc. The March 16, 2010 also established a Fair Fund.

On December 16, 2010, the SEC issued an order extending the time to enter an order approving or disapproving the distribution plan. The SEC noted: "Because of the need for Commission review of the Plan, good cause exists to extend the time period provided in Rule 1104 for entry of an order approving or disproving the plan to March 25, 2011."

On February 1, 2011, the SEC issued a Notice of Proposed Modified Plan of Distribution and Opportunity for Comment. According to the Notice: "The Division of Enforcement previously filed a different version of a proposed distribution plan, which was noticed for comment on September 23, 2010. The principal difference between the previous version of the plan and the Modified Distribution Plan is that the Modified Distribution Plan makes no provision for distribution of consequential costs to Eligible Investors, such as costs they incurred in hiring private legal counsel."

The SEC issued a Proposed Modified Plan of Distribution. According to the SEC: "This Fund was established to provide for the ultimate distribution of disgorgement and civil money penalties to PCS customers injured by the unsuitable and/or fraudulent sales of variable annuities ... and for an additional PCS customer also injured by the unsuitable and/or fraudulent sales of variable annuities who provided substantial assistance to the Division of Enforcement in connection with this administrative proceeding."

On March 14, 2011, the SEC issued an Order Approving Distribution Plan of a Fair Fund and Approving a Fund Administrator. In the Order the Commission also appointed Robert J. Keyes as the Fund Administrator and that "no bond is required since the Fund Administrator is a Commission employee."

On May 8, 2012, the SEC issued an Order Approving and Ratifying Prior Disbursement. According to the SEC: "The Modified Distribution Plan states that monies from the Fair Fund will be distributed to Eligible Investors who were harmed by the Respondents' conduct, as further described in the Modified Distribution Plan. On December 12, 2011, a distribution of $390,054.77 was made from the Fair Fund."

On December 18, 2013, the SEC issued an Order Directing Disbursement of Fair Fund Residual. Pursuant to the Order, residual funds totaling $141,500 from the Fair Fund were disbursed to seven investors.

On December 1, 2015, the SEC issued an Order Authorizing the Transfer of Remaining Funds and Any Funds Returned to the Fair Fund in the Future to the U.S. Treasury, Discharging the Fund Administrator, and Terminating the Fair Fund.