MONTANA

FRAUDULENT AND UNETHICAL PRACTICE OF RECOMMENDING UNSUITABLE INVESTMENTS TO CLIENTS.

Order

$10,000 FINE. HEIGHTENED SUPERVISION.

THE REPRESENTATIVE CONTESTS ALL ALLEGATIONS OF WRONGDOING AND WILL SEEK DISMISSAL OF THE ACTION. 04/05/12: SIMULTANEOUSLY WITH THE CONSENT AGREEMENT AND FINAL ORDER, THE REPRESENTATIVE WAS DISMISSED FROM THIS ACTION WITH PREJUDICE.

IN CONNECTION WITH THE RECOMMENDATION AND SALE OF MEDICAL CAPITAL, CLAIMANT ALLEGES UNSUITABILITY, OVERCONCENTRATION AND NEGLIGENCE.

$150,000.00

$77,129.11

GREGG SAUTTER IS NOT A NAMED RESPONDENT IN THIS MATTER. 10/13/2011: THE PORTION OF THIS CLAIM RELATING TO MEDICAL CAPITAL WAS PART OF A GLOBAL SETTLEMENT BY SECURITIES AMERICA, INC. CLAIMS RELATING TO ADDITIONAL PRODUCTS CONTINUE AT THIS TIME. 04/25/2012: SECURITIES AMERICA SETTLED ALL REMAINING CLAIMS FOR $7,500. THIS MATTER IS NOW CONCLUDED. THE REPRESENTATIVE WAS NOT ASKED TO, NOR DID HE, CONTRIBUTE TO EITHER SETTLEMENT.

CLIENT IS ALLEGING VIOLATIONS OF THE MONTANA SECURITIES ACT, NEGLIGENCE, FRAUDULENT MISREPRESENTATION, FRAUD AND DECEIT, CONSTRUCTIVE FRAUD, UNJUST ENRICHMENT.

$200,000.00

$49,212.46

THIS CLAIM WAS PART OF A GLOBAL SETTLEMENT BY SECURITIES AMERICA, INC. GREGG SAUTTER WAS NOT ASKED TO, NOR DID HE, CONTRIBUTE TO THIS SETTLEMENT.

CLAIMANTS (DECEASED'S NATURAL FATHER AND STEP-MOTHER) ALLEGE THEY ARE ENTITLED TO 100% NET DEATH BENEFIT($90,000) VERSUS ONLY 50% ($45,000) IF BENEFICIARY IS THE ESTATE OF DECEASED SON, [FAMILY MEMBER] (THE OTHER 50% TO NATURAL MOTHER). THE BENEFICIARIES AS LISTED ON ORIGINAL APPLICATION WERE [CUSTOMER] (NATURAL FATHER) AND/OR [CUSTOMER] (STEPMOTHER). HOWEVER, WITHOUT CLAIMANTS' OR REPRESENTATIVE'S KNOWLEDGE, NEW ENGLAND LIFE CHANGED BENEFICIARY TO CUSTODIAN/UTMA (DECEASED'S NATURAL MOTHER & NATURAL FATHER).

$45,000.00

$61,590.09

NEW ENGLAND LIFE (NEL) SETTLED THIS MATTER WITH CLAIMANTS. REPRESENTATIVE DID NOT CONTRIBUTE TO THIS SETTLEMENT. LITIGATION WAS DISMISSED PURSUANT TO SETTLEMENT AGREEMENT.