Time frame: 2018 Claimant's counsel alleges unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy. Counsel further states clients were placed in an investment that was not in their best interest.

$620,000.00

This arbitration is being reported on my record only because of FINRA reporting rules that my firm interprets to require reporting based on a single phone call I had with the customer to describe the options strategy that is subject of the complaint. The customer was never my client and I did not recommend the strategy to him. I am also not named a party in the subject arbitration-indeed, my name does not appear in the Statement of Claim. A FINRA arbitration panel recently ruled in favor of expungement in a virtually identical situation that a report of an arbitration brought by someone who was not my client should be removed from my record. In that case the arbitrators said my "sole role as it relates to the customer claims was to verify that the customer understood the risks associated with the [strategy]," and found that I "was not responsible for determining suitability, nor played a role in the sales and/or solicitation of the product."

Allegations as stated by Claimant: Time frame: Starting in the Fall of 2017 Allegations: Claimants' counsel alleges unsuitability and misrepresentation with respect to recommendations to invest in and hold an options overlay strategy.

$900,000.00

Costello was a subject of the customer's complaint against his member firm that asserted the following causes of action: breach of contract and warranties; promissory estoppel; violation of the Texas Deceptive Trade Practices - Consumer Protection Act; violation of the Texas Securities Act; statutory fraud; breach of fiduciary duty; negligence and gross negligence; misrepresentation/omission and negligent misrepresentation/omission; unjust enrichment; failure to supervise; common law and statutory claims; and vicarious and control person liability.

$100,000.00

Costello was a subject of the customer's complaint against his member firm that asserted the following causes of action: fraud; misrepresentation; unsuitability; unsuitable product; breach of fiduciary duty; negligence and breach of contract under the federal securities laws, FINRA regulations, North Carolina securities statutes and applicable common law.

$525,467.00