The Office of Financial and Insurance Regulation (OFIR) and AARP Michigan Wednesday announced the “Free Lunch Seminar Monitor” program, which gives individuals an opportunity to fight back against unscrupulous promoters by reporting questionable investment practices in their communities to state securities authorities for investigation.

The Free Lunch Senior Monitor program enlists the help of Michigan seniors, who attend seminars and report back to OFIR whether investors are being pressured into purchasing inappropriate or unsuitable investments. Participants bring a checklist with them to help assure that both the products promoted at free investment seminars, as well as the promoters, conform to securities laws and regulations. Information from the checklists is then forwarded to OFIR for evaluation.

Investment fraud perpetuated by free seminars is a growing problem for the senior population.  A recent year-long examination of free lunch seminars conducted by state securities regulators, the Securities and Exchange Commission, and the Financial Industry Regulatory Authority found that while many free meal financial seminars were advertised as “educational,” or “workshops,” 100 percent of the “seminars” were instead sales presentations; 50 percent featured exaggerated or misleading advertising claims; and one-quarter involved possibly unsuitable recommendations to attendees. 

According to OFIR, in the past three years, three out of five investors age 60 and over received six or more invitations to a free investment seminar.

“This is a great chance for Michigan seniors to be our ‘eyes and ears’ at these free lunch seminars as we continue to ferret out bad actors,” OFIR Commissioner Ken Ross said. “Where we find evidence of misrepresentations, high-pressure sales tactics and outright fraud we will take enforcement action and pursue criminal referrals.”

“A solid investment portfolio is the bedrock of a financially secure retirement,” Steve Gools, AARP State Director in Michigan, said. “By empowering individuals with knowledge and information, we aim to create an educated and financially savvy investor who can spot a scam when they are being targeted. We also hope the Free Lunch Seminar Monitor program will deter scammers and give state securities regulators an opportunity to investigate them.”

For more information about how to volunteer for the Free Lunch Seminar Monitor program and to download the monitor checklist, visit www.aarp.org/nofreelunch.

For questions about an investment firm, professional or product, contact OFIR at (877) 999-6442 or online at www.michigan.gov/ofir.