Securities America and the bait-and-switch

1. Securities America and the
Elderly
By Nick Moreland

2. Securities America
• Subsidiary of Ladenburg Thalmann Financial
Services Inc.
• A financial services/investment firm
• More than 2,000 brokers
• Headquarted in La Vista, NE

3. The Problem?
• The company approved ads from a broker who
“exploited the dangers of Alzheimer's disease
in order to gain access to senior clients.”
• Seniors would call the given number to get
information about Alzheimer's disease and
give contact info.
• Used info to try to sell financial advice,
according to the complaint.

4. BAIT AND SWITCH
• Falsely advertising one service to obtain
contact information, and then switching it out
for another.

5. More facts
• No actual customer complaints
– An outside source accused Securities America of
using a bait-and-switch scheme
• Barry Armstrong (the broker) denied any
wrongdoing
• Securities America claimed they did not know
about his plan

6. Ethical Questions to Consider
• Is a Bait-and-Switch unethical if the service
can be beneficial?
– Or if the first offered information is actually given?
• Should Barry Anderson be punished for “false
advertising” even though he had previous
experience dealing with Alzheimer's?