RIP-OFF ALERT: The Securities and Exchange Commission has taken action against Prime Capital Services for allegedly operating free-lunch seminars designed to sell variable annuities to senior citizens.

In general, free-lunch seminars are extremely popular in Arizona, Florida and Nevada. Seniors in their late 70s to late 80s are usually targeted. During the event, a charming salesperson will typically come up to them and offer to schedule a free private consultation where the real sales pitch comes.

"[PCS] used free lunches as the low-tech bait for their high-scale scheme," according to a statement from the SEC. "These con men lured elderly and retired investors into purchasing highly unsuitable variable annuities, enriching themselves with commissions while ignoring the financial goals of their victims."

In other words, they get rich and your parents (or you) get poor.

Money put into a variable annuity is generally not accessible without penalty until 10 years after the origination date. That makes no sense for a senior who needs to be able to spend their money. If you ever get a free-lunch pitch, you should run the other way.

Remember, the most expensive meal you can ever have is a free one. It will result in the biggest case of indigestion you could ever have.