TEXAS

ON OR ABOUT JUNE 1, 1993, PHILLIP DOUGLAS GUNDY REGISTERED WITH THE SECURITIES COMMISSIONER AS AN AGENT FOR A.G. EDWARDS, WHICH IS CURRENTLY EFFECTIVE. PHILLIP DOUGLAS GUNDY FAILED TO COMPLY WITH THE A.G. EDWARDS' WRITTEN PROCEDURES BY ALLOWING A THIRD PARTY TO EFFECT THE WITHDRAWALS FROM A CUSTOMER'S ACCOUNT WITHOUT THE REQUIRED DOCUMENTS AS REQUIRED BY A.G. EDWARDS WRITTEN PROCEDURES.

Order

REPRIMAND

NO OTHER SANCTIONS FOLLOW.

PHILIP GUNDY FAILED TO COMPLY WITH A.G. EDWARDS & SONS', INC. WRITTEN PROCEDURES BY ALLOWING A THIRD PARTY TO EFFECT THE WITHDRAWALS FROM THE CUSTOMER ACCOUNT WITHOUT THE REQUIRED DOCUMENTS AS REQUIRED BY A.G. EDWARDS & SONS', INC. WRITTEN PROCEDURES, WHICH CONSTITUTES AN INEQUITABLE PRACTICE IN THE SALE OF SECURITIES AND IS THE BASIS FOR THE ISSUANCE OF AN ORDER REPRIMANDING A REGISTERED AGENT PURSUANT TO SECTION 14.A(3) OF THE TEXAS SECURITIES BOARD. IT IS THEREFORE ORDERED THAT PHILIP DOUGLAS GUNDY IS HEREBY REPRIMANDED.(APRIL-MAY, 2002) **THE CUSTOMER'S WITHDRAWALS WERE DONE AT HIS REQUEST AND THE CHECKS WERE PAYABLE TO HIM AND SENT TO HIS HOME. WE TOOK THE WITHDRAWAL REQUESTS THROUGH HIS WIFE WITHOUT FIRST GETTING THE PROPER PAPERWORK. WE WERE ATTEMPTING TO ASSIST THE CUSTOMER WHO WAS NOT ABLE TO SPEAK DURING AN ILLNESS. ***AMENDED TO CORRECT INITIATED AND RESOLUTION DATES, PER THE FINAL ORDER.

ALLEGED UNAUTHORIZED WITHDRAWALS FROM ESTATE ACCOUNT TO A NON-OWNER OF THE ACCOUNT. (APRIL 10, 2002 AND MAY 3, 2002)

$30,000.00

I DISAGREE WITH THE ALLEGATIONS IN THE COMPLAINT BY THE CLIENT'S HEIRS. MY CLIENT APPROVED BOTH TRANSACTIONS IN HIS ACCOUNT.

ALLEGED GROSS NEGLIGENCE AND UNSPECIFIED LOSSES OVER $5,000. (ACCOUNT OPENED APPROXIMATELY OCTOBER 27, 1999)