The SEC report revealed that in August the board of directors had approved  indemnifying CEO Michael Ryan and chief compliance officer, Rose Rudden, who had agreed to pay a $65,000 civil penalty each. Meanwhile, on September 15, the company paid only $100,000 out of an installment of $198,088 due and paid the rest on October 8. That total was out of a total penalty of $450,000 to be paid in three installments. Because of the missed deadline, Gilman noted the SEC had accelerated the due date of the third installment, which had not been paid as of the filing of the 10-K with the SEC on October 13.

Ryan, who is also active in the sale of securities, and Rudden had agreed to an SEC ban on their being able to perform in supervisory roles at any broker/dealer organization. So that Ryan can keep his job as president and CEO and not violate the supervisory restrictions, the directors delegated those duties to Carole Enisman, EVP of operations. She will supervise any issue that could impact the conduct or employment of two company subsidiaries, Prime Capital Services and Asset and Financial Planning, will report directly to the board of directors, not to Ryan on those issues.