THE CUSTOMER ALLEGES MISREPRESENTATION REGARDING AN INVESTMENT PURCHASED IN JUNE 2008. COMPENSATORY DAMAGES ARE NOT SPECIFIED.

CLIENT ALLEGES THAT FINANCIAL ADVISOR MADE UNSUITABLE INVESTMENT RECOMMENDATIONS AND UNAUTHORIZED TRADES.

$500,000.00

CUSTOMERS ALLEGED UNSUITABLE INVESTMENTS IN THEIR ACCOUNTS. THE STATEMENT OF CLAIM ALSO CONTAINED ALLEGATIONS SOLELY AGAINST THE FIRM.

$500,000.00

$100,000.00

BOTH MERRILL LYNCH AND MR. VALDES DENIED ANY LIABILITY IN THIS MATTER. IN 2000-01, THE CUSTOMERS DECIDED TO INVEST THEIR ACCOUNT IN BETTER PERFORMING EQUITIES, INCLUDING TECHNOLOGY STOCKS AND ENRON. THEY SOUGHT DAMAGES FROM MERRILL LYNCH AND MR. VALDES IN THE WAKE OF THE SUBSEQUENT MARKET DOWNTURN AND BEAR MARKET. AFTER RECEIVING ADDITIONAL INFORMATION, THE CUSTOMERS WITHDREW ALL CLAIMS AGAINST MR. VALDES WITH PREJUDICE. MERRILL LYNCH ULTIMATELY SETTLED THE MATTER TO AVOID THE COSTS, TIME AND VAGARIES OF ARBITRATION, WITHOUT ANY ADMISSION OF LIABILITY.

CLAIMANTS ALLEGE UNSUITABILITY WITH RESPECT TO RECOMMENDATIONS MADE BY THEIR FA AND THE CONCENTRATION MAINTAINED IN THEIR ACCOUNT.

$800,000.00

$120,000.00

BOTH MERRILL LYNCH AND MR. VALDES DENIED ANY LIABILITY IN THIS MATTER. THE MATTER WAS ONE OF SEVERAL COMPLAINTS BY CUSTOMERS WHO WORKED WITH EACH OTHER RELATING TO LOSSES FROM IPO STOCK THE CUSTOMERS RECEIVED WHEN THEIR EMPLOYER WENT PUBLIC. THE CUSTOMERS DID NOT HEED MR. VALDES' RECOMMENDATION TO DIVERSIFY THEIR HOLDINGS. THE CUSTOMERS WITHDREW ALL COMPLAINTS AGAINST MR. VALDES WITH PREJUDICE. MERRILL LYNCH ULTIMATELY AGREED TO PAY CUSTOMERS TO AVOID THE FURTHER COSTS, TIME AND DISTRACTION OF ARBITRATION, WITHOUT ANY ADMISSION OF LIABILITY.

CLAIMANT ALLEGES THAT HER FINANCIAL ADVISOR DID NOT DO ENOUGH TO ENCOURAGE HER TO DIVERSIFY HER PROTFOLIO THAT WAS INITIALLY CONCENTRATED IN ONE STOCK AND THEN LATER DISSUADED HER FROM SELLING ADDITIONAL SHARES OF THAT STOCK BECAUSE MERRILL LYNCH ANALYSTS RATED THE STOCK HIGHLY. CLAIMANT SEEKS DAMAGES BETWEEN $250,000 AND $400,000.

$250,000.00

$90,000.00

BOTH MERRILL LYNCH AND MR. VALDES DENIED ANY LIABILITY IN THIS MATTER. THE MATTER WAS ONE OF SEVERAL COMPLAINTS BY CUSTOMERS WHO WORKED WITH EACH OTHER RELATING TO LOSSES FROM IPO STOCK THE CUSTOMERS RECEIVED WHEN THEIR EMPLOYER WENT PUBLIC. THE CUSTOMER CONCEDED THAT MR. VALDES RECOMMENDED SHE REDUCE HER CONCENTRATED STOCK POSITION AND SHE DID NOT DO SO. THE CUSTOMER AGREED TO WITHDRAW HER CLAIM AGAINST MR. VALDES WITH PREJUDICE. MERRILL LYNCH ULTIMATELY SETTLED THE MATTER TO AVOID THE FURTHER COST, TIME AND DISTRACTION OF ARBITRATION, WITHOUT ANY ADMISSION OF LIABILITY.

NEGLIGENCE; MISREPRESENTATIONS/NON-DISCLOSURES; UNAUTHORIZED TRADING; SUITABILITY

$150,000.00

BOTH MERRILL LYNCH AND MR. VALDES DENIED ANY LIABILITY IN THIS MATTER. THE CUSTOMER SUSTAINED LOSSES THAT MIRRORED THE PERFORMANCE OF THE S&P 500 DURING THE SAME BEAR MARKET PERIOD (2000-01). MR. VALDES REGULARLY DISCUSSED WITH THE CUSTOMER THE RISKS OF INVESTING IN AND CONTINUING TO HOLD EQUITIES DURING THAT PERIOD. AFTER RECEIVING ADDITIONAL INFORMATION, THE CUSTOMERS WITHDREW ALL CLAIMS AGAINST MR. VALDES WITH PREJUDICE. MERRILL LYNCH ULTIMATELY SETTLED THIS MATTER TO AVOID THE COST, TIME AND VAGARIES OF ARBITRATION, WITHOUT ANY ADMISSION OF LIABILITY.

CUSTOMERS ALLEGE "EXCESSIVE TRADING", THE PURCHASE OF SECURITES WHICH WERE UNSUITABLE AND TRANSACTIONS :BEING EFFECTED WITHOUT PERMISSION." CLAIMANT DEMANDS DAMAGES BETWEEN $1,000,000 AND $3,000,000.

$3,000,000.00

$400,000.00

BOTH MERRILL LYNCH AND MR. VALDES DENIED ANY LIABILITY IN THIS MATTER. IN DENYING THE ALLEGATIONS, MERRILL LYNCH AND MR. VALDES SPECIFICALLY STATED THAT THE SOLICITED INVESTMENTS WERE DISCUSSED BEFOREHAND; A SUBSTANTIAL MAJORITY OF THE TRADES WERE UNSOLICITED; A NUMBER OF THE UNSOLICITED TRADES WERE MADE IN COMPANIES NOT FOLLOWED BY MERRILL LYNCH; AND THE ULTIMATE CUSTOMERS WERE EXPERIENCED INVESTORS WHO HAD AUTHORITY TO TRADE ON THE ACCOUNT(S), EXERCISED FULL CONTROL OVER THE ACCOUNT(S) AND CONDUCTED THE TRADING ACTIVITY PURSUANT TO THEIR OWN AGGRESSIVE SHORT TERM TRADING STRATEGY. AFTER RECEIVING ADDITIONAL INFORMATION, THE CUSTOMERS WITHDREW ALL COMPLAINTS AGAINST MR. VALDES WITH PREJUDICE. MERRILL LYNCH ULTIMATELY SETTLED THE MATTER TO AVOID THE COST, TIME AND VAGARIES OF ARBITRATION, WITHOUT ANY ADMISSION OF LIABILITY.

STATEMENT OF CLAIM ("SOC") ACKNOWLEDGES THAT CUSTOMER'S PORTFOLIO WAS ALREADY CONCENTRATED IN A SPECIFIC STOCK AND MARGINED WHEN HE TRANSFERRED HIS ACCOUNT TO MERRILL LYNCH, AND THAT VALDES RECOMMENDED SELLING THAT STOCK TO REDUCE MARGIN EXPOSURE. SOC ALLEGES THAT WHEN THE CUSTOMER REJECTED THE SUGGESTION TO SELL, THREE PURCHASE TRANSACTIONS IN OTHER SECURITIES WERE SOLICITED USING MARGIN TO INCREASE RISK. SOC ALSO ALLEGES FLAWED RESEARCH LED CUSTOMER TO HOLD THE STOCK POSITION.

$900,000.00

$95,000.00

BOTH MERRILL LYNCH AND MR. VALDES DENIED ANY LIABILITY IN THIS MATTER. THE MATTER WAS ONE OF SEVERAL COMPLAINTS BY CUSTOMERS WHO WORKED WITH EACH OTHER RELATING TO LOSSES FROM IPO STOCK THE CUSTOMERS RECEIVED WHEN THEIR EMPLOYER WENT PUBLIC. THE CUSTOMER REFUSED TO DIVERSIFY HIS POSITION AND BLAMED MERRILL LYNCH AND MR. VALDES FOR HIS LOSSES. THE CUSTOMER AGREED TO WITHDRAW HIS CLAIM AGAINST MR. VALDES WITH PREJUDICE. MERRILL LYNCH ULTIMATELY SETTLED THE MATTER TO AVOID THE FURTHER COST, TIME AND DISTRACTION OF ARBITRATION, WITHOUT ANY ADMISSION OF LIABILITY.

CUSTOMERS ALLEGE THAT FINANCIAL ADVISOR MADE UNSUITABLE INVESTMETN RECOMENDATIONS. NO SPECIFIC DAMAGE IS ALLEGED.

MERRILLL YNCH AND FINANCIAL ADVISOR DENY THE ALLEGATION. CLAIM WAS DENIED AND NO FURTHR ACTION TAKEN BY THE CUSTOMER.

CUSTOMER ALLEGES THAT MR. VALDES SHORTED CERTAIN STOCKS WITHOUT HIS AUTHORIZATION. NO DAMAGES ARE SPECIFIED. THIS OCCURRED AT MERRILL LYNCH.

$28,728.00

THE TRADES IN QUESTION WERE REVERSED AS A BUSINESS DECISION AT A COST OF $28,728. THE CLIENT IS ACTUALLY DISAPPOINTED IN THE STOCKS MR VALDES RECOMMENDED HE SHORT SELL. ALL TRADES WERE DONE BY MR. VALDES WITH CLIENT'S FULL KNOWLEDGE AND AUTHORIZATION. ON THE SAME DAY IN QUESTION CLIENT ALSO DID TAX LOSS SELLING WHICH THE CLIENT HAS NOT RAISED ANY ISSUE WITH.

AMEX

The Exchange instituted a formal disciplinary proceeding against Michael Valdes ("Valdes"), a registered employee of Merrill Lynch, Pierce, Fenner & Smith, a regular member organization of the Exchange. A Stipulation of Facts and Consent to Penalty was subsequently entered into between the Exchange and Valdes and was accepted by an Exchange Disciplinary Panel at a hearing held on September 24, 1997. Valdes consented to a finding that he violated Exchange Rule 411 by recommending and implementing a trading strategy which was unsuitable for his customers' accounts based upon the customers' investment objectives, financial situations and needs, and ability to evaluate and bear the risks of the recommended transactions; and Exchange Rule 421(a) by exercising discretion in his customers' accounts without first obtaining written authorization from the customers.

Stipulation and Consent

Monetary/Fine

$10,000.00

Censure

Valdes was censured, fined $10,000, and required that he re-enter the Regulatory Element of the continuing education program for registered persons, as required by Exchange Rule 341A.

Not Provided

CLAIMANT ALLEGED THAT HIS ACCOUNT WAS INVESTED IN STOCKS THAT WERE TOO RISKY CAUSING A SUBSTANTIAL DECLINE IN THE VALUE OF HIS ACCOUNT BETWEEN JANUARY 1991 AND MARCH 1992 AND SOUGHT $31,000 IN COMPENSATORY DAMAGES PLUS UNSPECIFIED COMMISSIONS, LOST TIME VALUE OF MONEY AS WELL AS UNSPECIFIED ATTORNEY'S FEES AND COSTS. THIS OCCURRED AT MERRILL LYNCH.

$22,500.00

$22,500 THIS MATTER WAS SETTLED TO AVOID THE TIME, EXPENSE AND UNCERTAINTY OF LITIGATION. REGISTRANT WANTS TO MAKE IT CLEAR THAT MERRILL LYNCH WAS SUED NOT THE REGISTRANT. MERRILL LYNCH MADE A BUSINESS DECISION TO SETTLE THIS ARBITRATION IN ORDER TO AVOID ANY FURTHER EXPENSES ASSOCIATED WITH THIS LITIGATION.

CHURNING, UNAUTHORIZED TRADING, DAMAGES IN EXCESS OF $60,000 ALLEGED.

$67,500.00

THIS MATTER WAS SETTLED FOR $67,500. THE SETTLEMENT WAS REACHED IN ORDER TO AVOID THE UNCERTAINTY AND EXPENSE OF PROTRACTED LITIGATION.

CLAIMS OF CHURNING, UNSUITABILITY AND UNAUTHORIZED TRADING ARE ALLEGED AND THE CUSTOMER SEEKS $255,440 IN DAMAGES.

$255,440.00

$145,000.00

CASE SETTLED FOR $145,000. ALL CHARGES OF WRONGDOING AND LIABILITY AND ALL CLAIMS FOR DAMAGES ARE DENIED. CASE SETTLED TO AVOID THE UNCERTAINTIES AND EXPENSES OF LITIGATION.