CLAIMANTS ALLEGE OVER CONCENTRATION, MISREPRESENTATIONS, UNSUITABILITY AND UNAUTHORIZED TRADING IN CONNECTION WITH INVESTMENTS IN 2006 OF BEHRINGER HARVARD REITS AND UNSPECIFIED STOCKS.

$100,000.00

$17,500.00

CLIENTS' ALLEGATIONS WERE MERITLESS FOR INVESTMENTS PURCHASED IN 2006 AND DECLINED DURING THE REAL ESTATE MARKET'S DOWNTURN/RECESSION. CLIENTS WERE SUITABLE, HAD NO SHORT TERM LIQUIDITY NEEDS AND THE PORTFOLIO WAS DIVERSIFIED. REPRESENTATIVE WAS NOT A NAMED PARTY TO THIS MATTER, WHICH WAS SETTLED FOR DEFENSE OF COSTS TO AVOID ADDITIONAL TIME, COST OF LITIGATION AND EXPENSES.

CLIENT ALLEGED REGISTERED REPRESENTATIVE MADE MISREPRESENTATIONS RELATED TO A VARIABLE UNIVERSAL LIFE PRODUCT PURCHASED IN FEBRUARY 2002.

$118,117.00

$62,500.00

IN FEB 2002, CLIENT IN CONSULTATION WITH HIS ACCOUNTANT WHO WAS PRESENT AT THE MEETING AGREED TO A VUL PURCHASE AS A 419 PLAN. SEVERAL YEARS LATER THE IRS CHANGED ITS RULING ON THE TAX BENEFITS OF 419 PLANS. CLIENT SETTLED WITH IRS FOR TAXES AND PENALTIES OWED RELATED TO THE VUL PURCHASE. THE CLIENT THEN PROCEEDED TO ATTEMPT TO RECOUP HIS IRS PAYMENTS BY ALLEGING THAT TAX ADVICE WAS PROVIDED INAPPROPRIATELY TO HIM ON THE INITIAL INVESTMENT. CLIENTS' ALLEGATIONS WERE MERITLESS. THIS MATTER WAS SETTLED FOR DEFENSE COSTS TO AVOID ADDITIONAL TIME, COST OF LITIGATION AND EXPENSES.