CUSTOMER'S DAUGHTER INITIATED LEGAL PROCEEDINGS AS POA WHICH WERE RECD BY THE FIRM IN APRIL 2009.ALLEGATIONS DETAIL RR RECOMMENDED INAPPROPRIATE AND UNSUITABLE INVESTMENT GIVEN CUSTOMER'S AGE AND LIQUIDITY NEEDS.

$35,750.00

$35,500.00

CLIENT RECEIVED RETURN OF PRINCIPAL FROM POSITION HELD IN AUCTION RATE SECURITY

THIS COMPLAINT AROSE OUT OF THE SALE OF AN AUCTION RATE SECURITY (ARS) THAT WAS MADE PRIOR TO THE UNPRECENDENTED ILLIQUIDITY IN THE ARS MARKET THAT OCCURRED IN FEBRUARY 2008.

$25,000.00

$25,000.00

CUSTOMER ALLEGES THAT REPRESENTATIVE MADE CHANGES TO THE TERMS OF HIS VARIABLE ANNUITY CONTRACT WITHOUT PERMISSION OF THE CUSTOMER

HIBERNIA NATIONAL BANK

Permitted to Resign

ACCEPTED $ 17,500 IN CASH FROM A CUSTOMER AND TRANSFERRED THE CASH TO HIBERNIA NATIONAL BANK FOR PROCESSING, BUT FAILED TO NOTIFY HIBERNIA INVESTMENTS OF ACCEPTANCE, CAUSING HIBERNIA INVESTMENTS TO BE IN NONCOMPLIANCE WITH CFR REPORTING, RECORD KEEPING AND RECORD RETENTION REQUIREMENTS. APPARENT VIOLATION BY MR. GUNDLACH OF NASD CONDUCT RULE 2110.

THE IMPLICATION IN #4 IS THAT I INTENTIONALLY SOUGHT TO AVOID CASH REPORTING REQUIREMENTS. THIS IS NOT TRUE. A CLIENT WAS REFERRED TO ME BY A PERSONAL BANKER. THE CLIENT HAD RECENTLY INHERITED SOME CD'S DUE TO THE DEATH OF HIS MOTHER. AFTER MEETING WITH THE CLIENT, HE DECIDED TO PURCHASE AN ANNUITY. ON APRIL 21, 2001 AND ON APRIL 24, 2002 HE BROUGHT CASH TOTALING $25,000 INTO THE OFFICE,WHICH WAS LOCATED IN THE HIBERNIA NATIONAL BANK BUILDING, FOR THE PURCHASE OF THE ANNUITY. EACH TIME THE CASH WAS GIVEN TO THE ASSISTANT BANK MANAGER TO BE PUT INTO NEGOTIABLE INSTRUMENTS THAT COULD BE USED FOR THE PURCHASE OF THE ANNUITY. HIBERNIA HAS A POLICY PROHIBITING CUSTOMERS FROM USING CASH TO PURCHASE CASHIER'S CHECKS OVER $3,000. TO CIRCUMVENT THIS POLICY THE ASSISTANT BANK MANAGER ISSUED CHECKS FOR AMOUNTS UNDER $3,000. I DO NOT REMEMBER EVER BEING INFORMED OF THIS POLICY AND CERTAINLY WOULD NOT KNOWINGLY HAVE ASKED SOMEONE TO VIOLATE IT. WHILE I WAS AWARE OF THE $10,000 CASH REPORTING RULE, I ASSUMED THAT THE REPORTING RESPONSIBILITY WOULD FALL UNDER THE BANK AND NOT THE INVESTMENT SIDE. THE PURCHASE OF THE CASHIERS CHECKS TRIGGERED AN INVESTIGATION BY HIBERNIA ETHICS COMMITTEE. HOWEVER, THE COMMITTEE NEVER QUESTIONED ME OR ALLOWED ME TO ADDRESS THEM AND EXPLAIN MY PERSPECTIVE ON WHAT HAD TRANSPIRED. I WAS THEN INFORMED THAT I WAS BEING TERMINATED BECAUSE OF THIS SITUATION. I THEN ASKED TO RESIGN INSTEAD AND HIBERNIA AGREED. HAVING QUESTION 4 ON THE U5 ANSWERED AS IT WAS, TRIGGERED AN INVESTIGATION BY THE NASD. IN A LETTER OF CAUTION DATED FEBRUARY 19, 2002, EXAMINATION NO: TC-E015010351, THE NASD STATED THAT THIS WAS NOT REPORTABLE ON FORM BD OR FORM U4.