CLIENT COMPLAINED THAT FA DID NOT DISCLOSE SURRENDER FEES - 01/05/06

$8,772.20

$8,772.20

THE CLAIM WAS SETTLED FOR $8772.20

ALLEGED MISREPRESENTATION ON THE PURCHASE AND SALE OF KEMPER SHORT TERM GLOBAL BOND FUND. ALLEGED DAMAGES OF $172,899.15.

$172,899.15

$100,000.00

MR. JOHNSON WAS DISMISSED OF ANY ALLEGATION OF WRONGDOING. WACHOVIA BANK AGREED TO PAY(CUSTOMER)$100,000 IN SETTLEMENT OF ALL CLAIMS. MR. JOHNSON DID NOT, NOR WAS HE ASKED, TO CONTRIBUTE TO THE SETTLEMENT. THE FIRM VIEWS THE (CUSTOMER)LAWSUIT AS A PRODUCT RELATED COMPLAINT.(THIRD PARTY)(212)816-8163

CUSTOMER ASSERTED THAT AN INVESTMENT IN KEMPER SHORT-TERM GLOBAL INCOME FUND PROVED TO HAVE A HIGHER DEGREE OF RISK IN RELATION TO THE PERCENTAGE OF HIS LIQUID ASSETS INVESTED IN THE FUND. ALLEGED DAMAGES: $313,719.89

$313,719.89

$60,000.00

FIRST NATIONAL BANK OF ATLANTA, N.A (THE BANK) PAID [CUSTOMER] $60,000.00 TO AVOID THE EXPENSE OF LITIGATION. IN HIS DEPOSITION, [CUSTOMER] ADMITTED THAT HE HAD NEVER DISCLOSED HIS LIQUID ASSETS TO ANYONE AT THE BANK AND THAT HE HAD ALLUDED TO OTHER INVESTMENT ACCOUNTS HE HELD ELSEWHERE, THUS GIVING THE APPEARANCE THAT HIS TOTAL INVESTMENTS WERE LARGER THAN THEY ACTUALLY WERE. HIS TOTAL INVESTMENTS TURNED OUT TO BE SUBSTANTIALLY SMALLER THAN THE BANK AND MR. JOHNSON UNDERSTOOD THEM TO BE. [CUSTOMER] INITALLY STATED THAT JOHNSON MISREPRESENTED FACTS, BUT RETRACTED THAT ALLEGATION IN HIS DEPOSITION.