Client alleged that FA Murray solicited a loan investment for a third party business outside Morgan Stanley without the Firm's authorization.

$300,000.00

$70,000.00

CLIENT ALLEGES EXCESSIVE TRADING AND UNSUITABLE RECOMMENDATIONS CONCERNING COMMON STOCKS, AND FAILURE TO EXPLAINE MUTUAL FUND CONTINGENT DEFERRED SALES CHARGES. TIME PERIOD IS 11/99 TO DATE. ALLEGES DAMAGES OF $200,000.00.

$200,000.00

IN A LETTER DATED 01-06-02, THE FIRM DENIED THE CLIENT'S ALLEGATIONS.

CLIENT ALLEGES HE PURCHASED $34,000 OF CPN ON DECEMBER 11, 2001, IN PART, BECAUSE THE BROKER SAID HE HAD REVIEWED THE STOCK. CLIENT ALSO ALLEGES THAT THE REVIEW CONSISTED OF READING REPORTS PREPARED BY VARIOUS OTHER FINANCIAL COMPANIES AND THAT THOSE REPORTS COULD HAVE BEEN BASED ON SPECULATION. THE CLIENT FURTHER ALLEGES THAT THE BROKER NEGLECTED TO TELL HIM ABOUT NEGATIVE NEWS PERTAINING TO THE STOCK. THE STOCK WAS SOLD THE DAY AFTER PURCHASE WHEN ITS PRICE DECLINED, PURSUANT TO A STOP LOSS ORDER ENTERED AT THE TIME OF PURCHASE. THE CLIENT SAYS HE SHOULD BE REIMBURSED FOR HIS $7,140 LOSS ON THE STOCK.

$7,140.00

ALLEGATIONS DENIED BY FIRM IN A 5/3/02 LETTER TO CLIENT.