Consumer Advisory

"FREE LUNCHES" COULD COST FLORIDA SENIORS THEIR SAVINGS

December 2, 2008
TALLAHASSEE, FL - Attorney General Bill McCollum and Department of Elder
Affairs Secretary E. Douglas Beach today issued a consumer advisory urging
senior citizens and their loved ones to think twice before taking advantage
of so-called financial planning seminars or estate preservation workshops
that use a "free lunch" to lure seniors to attend. The Attorney General's
Office has received more than a dozen complaints from seniors enticed to
attend a free meal that actually turned out to be a high-pressure sales
pitch for investments that may be entirely inappropriate for the individual
based on his or her age and financial circumstance.

"The last thing our seniors need during this economic climate when their
retirement savings may be dwindling is an investment scam that further
depletes that nest egg," said Attorney General McCollum. "Too many of our
seniors are finding that these free meals can cost them dearly."

The invitations to the free meal often arrive via phone or mail and promise
tips on earning great financial return with minimal risk, eliminating taxes
or avoiding probate. After a high-pressure presentation, salespeople then
try to schedule follow-up visits in the homes of those who attend so they
can continue the pitch. In addition to losing money, consumers who
complained to the Attorney General's Office reported being badgered by
multiple unsolicited phone calls and frustrated by misrepresentation of the
seminar's purpose.

"Florida's seniors spent their lives hearing there's no such thing as a
free lunch, and now some unscrupulous hucksters are trying to make them
think otherwise," said Secretary Beach. "The safest approach for older
residents is to stick with tried-and-true methods of retirement planning so
they can avoid becoming the next victims of these high-pressure tactics."

AARP and the Financial Industry Regulatory Authority (FINRA) recommend that
seniors do not purchase anything or open an account of any kind at a
free-meal seminar. Seniors should also consider asking the following
questions:

• What are the risks of this investment?
• How much does it cost initially to purchase the investment?
• What, if any, additional or ongoing costs will I have to pay?
• How liquid is this investment? If I need to sell or cash in the
  investment, how readily can I do so?
• Will my investment be tied up? If so, for how long?
• What happens if I decide to sell or cash in my investment? Are there
  surrender charges or other fees?
• For what type of investor is this investment a good idea? For what
  type of investor is this investment a bad idea?
• Is the investment registered? If so, with which regulator?
• Are those offering the investment opportunity willing to give
  information to me in writing?

If the speaker can't or won't answer questions to a consumer's
satisfaction, the investment is probably not the best choice. AARP provides
a checklist on its website to take with you if you decide to attend such a
seminar. The checklist can be downloaded at
http://assets.aarp.org/www.aarp.org_/articles/money/listen_checklist.pdf

The bottom line: Consider carefully where and how you will invest your
hard-earned savings. AARP says that while a free meal or prize might be
enticing, there are unbiased, noncommercial places to go for information
about investing, including regulators such as the Securities and Exchange
Commission, FINRA and state securities regulators as well as the AARP
website.