CUSTOMER ALLEGES MISRPRESENTATIONS IN THE ROLLOVER OF HIS MUTUAL FUNDS FROM HIS 401K IN APRIL 2001. I DENY THAT ANY MISREPRESENTATIONS OCCURRED. ALLEGED DAMAGES UNSPECIFIED, BUT BELIEVED TO BE APPROXIMATELY $3600.

$2,600.00

[CUSTOMER] CLAIMED THAT HE WAS NOT NOTIFIED OF A MARGIN CALL AND BECAUSE OF THE MARGIN CALL THE CLEARING FIRM LIQUIDATED A PORTION OF HIS ACCOUNT TO COVER THE CALL

$20,000.00

CASE WAS MUTUALLY SETTLED BETWEEN [CUSTOMER] AND GARREN SEPEDE AND WAS DISMISSED BY NASD. NOT PROVIDED

UNION EQUITY PARTNERS, INC.

Permitted to Resign

N/A VIOLATION OF INDUSTRY CODES OF CONDUCT AND BREACH OF FIDUCIARY DUTIES AS OFFICE AND EMPLOYER.

I FILED A LAWSUIT AGAINST GERALD SMILEY FOR INTERFERENCE WITH BUSINESS EXPECTATIONS AND DEFIMATION, BREACH OF CONTRACT I ALSO FILED A LAWSUIT AGAINST UEP FOR COMMISSIONS THAT WERE DUE TO ME AT THE TIME OF TERMINATION (APPROX. $40,000) I HAVE SINCE SETTLED THE DISPUTE WITH UEP IN A MANOR FAVORABLE TO ME. I WORKED UNDER AN EMPLOYMENT CONTRACT SIGNED BY THEN CEO MR. SMILEY WHICH ENTITLED ME TO CERTAIN COMMISSIONS I HAD EARNED. TWO DAYS AFTER MY COMMISSION CHECK WAS RECEIVED BY UEP HE FIRED ME INSTEAD OF GIVING ME MY COMMISSIONS EARNED FROM THE EMPLOYMENT CONTRACT. THAT COMMISSION WAS DUE TO ME PURSUANT TO AN EMPLOYMENT CONTRACT BETWEEN MR. SMILEY & MYSELF REGARDING COMMISSIONS EARNED BY ME & PAID TO UEP ON AN INVESTMENT BANKING TRANSACTION WITH SENIOR TOUR PLAYERS. I WORKED AS AN INVESTMENT BANKER ON THE TRANSACTION AND WHEN THE TRANSACTION WAS COMPLETED, I WAS ENTITLED TO PAYMENT FROM UEP. INSTEAD OF PAYING ME, MR. SMILEY CHOSE TO FIRE ME AND SUBSEQUENTLY PAID HIMSELF THE $40,000 AND THEN WITHIN 30 DAYS LEFT UEP. MR. SMILEY THEN MOVED WITH ALL OF UEP'S BROKERS TO A.G. EDWARDS. THE DEROGATORY U5 WHICH IS THE SUBJECT OF THIS DRP, WAS DONE BY MR. SMILEY SO HE COULD PAY HIMSELF, WITH BASIS IN FACT AND OUT OF ILL WILL AND SPITE THE NASD INVESTIGATION IS CONCLUDED THERE WAS NO BASIS FOR MY TERMINATION. ALSO ENCLOSED IS THE LAWSUIT FILED BY UEP VS MR. SMILEY IN THAT COMPLAINT YOU WILL FIND THAT THE NEW MANAGEMENT OF UEP COULD NOT FIND REASON FOR MY TERMINATION.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

Decision

Monetary/Fine

$2,000.00

Censure

Not Provided

INADEQUATE DISCLOSURE OF SALES CHARGES AND BREAKPOINTS SWITCHING FUNDS OF INVESTMENT COMPANIES

$25,000.00

$15,000.00

I WAS CENSURED AND FINED IN THE AMOUNT OF $2000 FOR VIOLATIONS OF ARTICLE III, SECTIONS 1 AND 2 OF THE ASSOCIATES RULES OF FIR PRACTICE Not Provided