Client alleged that recommended investments were not suitable for his age and stated portfolio objective.

$75,449.00

After completion of the firm's investigation into the client's allegations, the claim was denied.

CLIENT'S ATTORNEY STATES CLIENT PURCHASED AN ANNUITY FOR $64,779.18 IN DECEMBER 2003. ATTORNEY STATES AT THE TIME OF THE PURCHASE, CLIENT WAS 84 YEARS OLD AND BELIEVES THE SALE WAS IMPROPER, ILLEGAL AND ILL-CONCEIVED. ATTORNEY STATES CLIENT DIED SHORTLY AFTER ISSUANCE AND HEIRS ONLY RECEIVED $49,189.19 IN DEATH BENEFIT. ATTORNEY IS REQUESTING $14,365.00.

$14,365.00

IR INDICATED THAT THE CLIENT CONTACTED IR IN DECEMBER OF 2003 INQUIRING HOW INCOME COULD BE RECEIVED FROM CLIENT'S VARIABLE ANNUITY. IR STATED HE REVIEWED THE OPTIONS OF SYSTEMATIC WITHDRAWALS AND ANNUITIZATION WITH THE CLIENT AND ENCOURAGED CLIENT TO DISCUSS THE OPTIONS WITH CLIENT'S FAMILY. IR FURTHER STATED CLIENT OPTED FOR THE TEN-YEAR PERIOD CERTAIN OPTION, BELIEVING CLIENT'S HUSBAND WOULD PASS AWAY FIRST AND CLIENT WOULD RECEIVE THE INCOME FOR THE REMAINDER OF THE PERIOD CERTAIN. AFTER CLIENT'S DEATH, THE FIRM WAS ADVISED BY PROTECTIVE LIFE THAT IT DID OFFER A DEATH BENEFIT IN THE AMOUNT OF $49,189.19 AND IT IS OUR UNDERSTANDING THIS OFFER WAS ACCEPTED BY THE DECEASED CLIENT'S BENEFICIARIES. BASED ON OUR INVESTIGATION, IT DOES NOT APPEAR THAT THIS MATTER WAS HANDLED INAPPROPRIATELY BY IR; THEREFORE, THE REQUEST FOR COMPENSATION WAS DENIED.

THE CLIENT STATES ON 10/4/00 BLACKLEY RECOMMEDED HE SELL ONE GOLDMAN SACHS MUTUAL FUND THAT WAS NOT PERFORMING WELL AND PURCHASE ANOTHER FUND. THE CLIENT STATES HE AUTHORIZED THE SELL OF THE ONE MUTUAL FUND. THE CLIENT STATES BLACKELY SOLD THREE GOLDMAN SACHS FUNDS AND PURCHASED FEDERATED FUNDS. THE CLIENT STATES HE DID NOT AUTHORIZE THE TWO ADDITIONAL SELL AND PURCHASE ORDERS. IN ADDITION, THE CLIENT STATES THAT THE RECOMMENDATION TO MOVE FROM GOLDMAN SACHS A SHARES TO FEDERATED C SHARES WAS NOT APPROPRIATE WHEN HE COULD HAVE EXCHANGED WITHIN THE GOLDMAN SACHS FUND FAMILY. THE CLIENT STATES HE HAS LOST APPROXIMATELY $19,000 AS A RESULT OF THESE TRADES.

$19,000.00

THE INITIAL PURCHASES WERE MADE IN MAY, 1994. BLACKLEY STATES THE CLIENT AUTHORIZED HIM TO SELL ALL OF THE GOLDMAN SACHS FUNDS IN OCTOBER 2000. THE CLIENT RECEIVED CUSTOMER CONFIRMATIONS ON THE SELLS AND NEW FUND PURCHASES AS WELL AS PROSPECTUSES FOR THE NEW PURCHASES. IN ADDITION, THE CLIENT RECEIVED MONTHLY STATEMENTS FOR THE LAST EIGHT MONTHS WHICH REFLECTED THIS ACTIVITY. CLAIM DENIED.