Bankruptcy

Discharged

NORTH CAROLINA CLIENT COMPLAINS VIA HER ATTORNEY THAT HER VARIABLE UNIVERSAL LIFE POLICY, PURCHASED VIA FINANCIAL ADVISOR JIM EADES, WAS MISREPRESENTED AS POSSESSING GUARANTEE FEATURES. CLIENT REQUESTS THE CONTRACT BE RESCINDED AND SURRENDER FEE ESTIMATED AT $14,501 WAIVED.

$14,501.00

NO EVIDENCE FOUND TO SUPPORT CLIENTS CLAIM OF MISREPRESENTATION. GUARANTEED FEATURES AND BENEFITS OF THE POLICY MATCH THOSE THAT CLIENT BELIEVES NOT TO EXIST. HOWEVER, TRAVELERS RESOLVED CLAIM. PER [CUSTOMER]'S ATTORNEY ON OCTOBER 8, 2004, TRAVELERS HAS VOLUNTARILY AGREED TO RETURN HER PREMIUM WITHOUT ASSESSING ANY SURRENDER.

ALLEGED AGENT DID NOT MAKE A GOOD FAITH EFFORT TO DETERMINE TAX CONSEQUENCES. CLIENTS ALLEGE A GAIN IN EXCESS OF $187,000 IN THEIR ACCOUNT AND SUBSEQUENT TAX LIABILITY OF $56,000 RESULTED FROM UNAUTHORIZED TRADING. ALL TRADES WERE AUTHORIZED BY THE CLIENT

$105,631.00

$39,000.00

ON SEPTEMBER 28, 2000 EADES WAS DISMISSED FROM THE [CUSTOMER] ARBITRATION CASE WITH PREJUDICE. THE ARBITRATION CASE BAGAN ON SEPTEMBER 26, 2000 AND DURING THE FIRST DAY OF HEARINGS, CLAIMANTS APPROACHED EADES AND A.G. EDWARDS WANTING TO SETTLE THE CASE. THE CASE AND SETTLEMENT NEGOTIATIONS CONTINUED UNTIL SEPTEMBER 28, 2000 WHEN THE CASE WAS ULTIMATELY SETTLED WITH MR. EADES BEING DISMISSED FROM THE MATTER AT THAT TIME. AFTER A.G. EDWARDS PAID THE SETTLEMENT CHECK, A.G. EDWARDS WAS WAS DISMISSED FROM THE ARBITRATION AS WELL. THE CASE WAS SETTLED SOLELY TO AVOID THE COST OF FURTHER LITIGATION.

ALLEGES INTENT TO DEFRAUD, RETAIN OR USE FUNDS OF A VALUE IN EXCESS OF $200.00 PAID TO HIM BY BOTH DELTA PROPERTIES AND JAMES A. BOYD, OTHER THAN TO PAY PERSONS WHO HAD PERFORMED LABOR OR FURNISHED MATERIALS.

Not Provided

Not Provided