NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

ARTICLE III, SECTION 1 OF THE RULES OF FAIR PRACTICE - A PUBLIC CUSTOMER OBTAINED A SINGLE PROCEEDS CHECK FROM THE DISTRIBUTION OF HIS PENSION PLAN AND INTENDED TO MAKE SEVERAL INVESTMENTS THROUGH RESPONDENT SKEITH USING THESE PROCEEDS. SKEITH RECOMMENDED THAT THE CUSTOMER PLACE THESE PROCEEDS INITIALLY IN AN INCOME FUND AND THEN TRANSFER A PORTION OF THEM INTO OTHER RECOMMENDED INVESTMENTS. BY RECOMMENDING INITIAL SHORT TERM INVESTMENTS IN THE FUND, RESPONDENT SKEITH RECEIVED A $3,213.85 CONCESSION, AND THE CUSTOMER INCURRED $3,863 IN TRANSACTION CHARGES. THESE CHARGES WOULD HAVE BEEN AVOIDED IF THE PROCEEDS HAD BEEN INITIALLY DEPOSITED INTO A MONEY MARKET FUND AND THEN DISTRIBUTED INTO THE VARIOUS RECOMMENDED INVESTMENTS.

Acceptance, Waiver & Consent(AWC)

Censure

Civil and Administrative Penalty(ies)/Fine(s)

$2,500.00

ON DECEMBER 5, 1994 DISTRICT NO. 3 NOTIFIED JOHN ROBERT SKEITH THAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. C3B940026 WAS ACCEPTED; THEREFORE, HE IS CENSURED AND FINED $2,500. **$2,500 PAID ON 1/5/95 INVOICE #94-3B-802**

A PUBLIC CUSTOMER OBTAINED A SINGLE PROCEEDS CHECK FROM HIS PENSION PLAN AND INTENDED TO MAKE SEVERAL INVESTMENTS WITH THE REPRESENTATIVE SKEITH. REP RECOMMENDED THE CUSTOMER PLACE THESE PROCEEDS INITIALLY IN AN INCOME MUTUAL FUND AND THEN TRANSFER A PORTION INTO THE OTHER RECOMMENDED INVESTMENTS. BY RECOMMENDING INITIAL SHORT TERM INVESTMENT, REP RECEIVED $3,213.85 CONCESSION AND THE CUSTOMER INCURRED $3,863 IN TRANSACTION CHARGES. THESE WOULD HAVE BEEN AVOIDED IF THE PROCEEDS HAD BEEN INITIALLY DEPOSITED IN A MONEY MARKET FUND AND THEN DISTRIBUTED INTO THE VARIOUS RECOMMENDED INVESTMENTS.