CLAIMANT, A NEW YORK RESIDENT, ALLEGES BEGINNING IN 2002 RESPONDENTS AND RESPONDENT'S REPRESENTATIVE INVESTED IN PREFERRED STOCKS AND BONDS IN VOLATILE FINANCIAL COMPANIES SUBJECTING THE ACCOUNT TO RISKS AND LOSS OF PRINCIPAL. CLAIMANT IS SEEKING COMPENSATORY DAMAGES OF NO LESS THAN $30,000.00.

$30,000.00

$5,000.00

MR. KESSLER IS NOT A NAMED RESPONDENT IN THIS CASE. THE PREFERRED EQUITIES AND BOND INVESTMENTS IN QUESTION WERE VERY HIGHLY RATED INCOME PRODUCING SECURITIES THAT WERE WIDELY BELIEVED BY THE INVESTMENT COMMUNITY TO BE VERY SECURE. THEY WERE OFFERED AND HIGHLY RECOMMENDED BY MOST INVESTMENT FIRMS. **THE PARTIES SETTLED THIS MATTER FOR $5,000.00.

NEW YORK RESIDENTS CLAIM THAT FA SHOULD HAVE TRANSFERRED ACCOUNT FROM MUTUAL FUNDS AND INDIVIDUAL STOCKS INTO MONEY MARKET FUND DURING 2000-2001 MARKET DOWNTURN OF HISTORIC PROPORTIONS. CLIENT CLAIMS $700K, WHICH INCLUDES PRINCIPAL LOSSES AND LOSS OF CAPITAL GAINS EARNED WHILE POSITIONS WERE PROFITABLE.

$700,000.00

MR. KESSLER SPECIFICALLY ADDRESSED THE CLIENTS' OPTION TO TRANSFER FUNDS INTO A MONEY MARKET ACCOUNT ON A NUMBER OF OCCASIONS DURING THE TIME PERIOD IN QUESTION, BUT CLIENTS SPECIFICALLY DECIDED AGAINST SUCH A MOVE. CLAIM DENIED.