CUSTOMERS COMPLAINED OF POOR PERFORMANCE AND UNSUITABLE INVESTMENTS.

$105,000.00

$20,000.00

MCDONALD INVESTMENTS IS INVESTIGATING THE ALLEGATIONS.

CUSTOMERS ALLEGED THAT JOHN BIANCHINI MADE UNSUITABLE INVESTMENTS FOR CUSTOMER'S ACCOUNT. CUSTOMERS ALSO ALLEGED MISREPRESENTATION ON THE PART OF JOHN BIANCHINI

$70,000.00

MCDONALD INVESTMENTS DENIES THE ALLEGATIONS.

CUSTOMER ALLEGED UNSUITABLE INVESTMENTS WERE PURCHASED IN CLIENT'S ACCOUNT WITHOUT AUTHORIZATION.

$53,000.00

$20,000.00

MCDONALD INVESTMENTS AGREED TO SETTLE THIS CLAIM.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

NASD RULE 2110 - WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE RESPONDENT CONSENTED TO THE ENTRY OF FINDINGS THAT HE PURCHASED OR CAUSED TO BE PURCHASED WITHOUT THE PRIOR KNOWLEDGE, CONSENT OR AUTHORIZATION OF PUBLIC CUSTOMER AN ADDITIONAL SHARES OF STOCK IN THE CUSTOMER'S ACCOUNT.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

Suspension

A SUSPENSION FROM ASSOCIATION WITH ANY MEMBER FIRM IN ANY CAPACITY FOR TEN (10) BUSINESS DAYS AND A FINE IN THE AMOUNT OF $5,000. THE SUSPENSION EFFECTIVE APRIL 15, 2002, AND END ON APRIL 26, 2002. FINES PAID 4/18/2002.

MR. BIANCHINI'S SUSPENSION HAS BEEN ACKNOWLEDGED FOR PERIOD 4-15-02 TO 4-26-02. HE HAS BEEN DISASSOCIATED FROM OUR OFFICE DURING THIS TIME. NO BUSINESS WILL BE TRANSACTED DURING THIS TIME NOR WILL RECEIVE ANY COMMISSIONS. MR. BIANCHINI'S RESPONSIBILITIES WILL BE HANDLED BY MR. JOHN ARGIRO AND MR. DAN KOBASA.

CUSTOMERS ALLEDGE UNSUITABLE AND UNAUTHORIZED TRANSACTIONS IN THEIR ACCOUNT

$70,000.00

$10,000.00

UNAUTHORIZED TRADE ON MARGIN IN CUSTOMERS ACCOUNT

$5,208.00

CUSTOMER ALLEGED THAT MR. BIANCHINI FAILED TO FOLLOW INSTRUCTIONS TO SELL STOCK ON 2/14/2001.

$30,000.00

$24,500.00

MCDONALD INVESTMENTS AGREED TO SETTLE THIS CLAIM.

MCDONALDS INVESTMENTS

Discharged

VIOLATION OF COMPANY POLICY

REGISTERED REP COMPLETED A TRADE TICKET FOR 500 SHARES OF A PARTICULAR SECURITY. REGISTERED SALES ASSISANT PURCHASED 5000 SHARES IN ERROR. REGISTERED REP SAW STOCK UP $2.00, DID NOT CANCEL TRADE. REGISTERED REP CHANGED TRADE TICKET TO REFLECT 5000 SHARES WITHOUT CLIENTS' CONSENT. REGISTERED REP WAS UNABLE TO CONTACT CLIENT IN A REASONABLE TIME.

FORMER CUSTOMER [CUSTOMER] THROUGH E-MAIL TO NASD CLAIMED THAT BIANCHINI PURCHASED STOCKS WITHOUT AUTHORITY WHILE EMPLOYED AT PRUDENTIAL STOCKS AND THAT HE BEHAVED FRAUDULENTLY WITH FIDUCIARY IRRESPONSIBILITY. NO AMOUNT OF DAMAGES CLAIMED. ARBITRATION CLAIM ALLEGES THAT BIANCHINI MISLED CLAIMANT ABOUT TRANSACTIONS IN THIS ACCOUNT, TRANSFERRED ASSETS WITHOUT CLAIMENTS KNOWLEDGE, OPENED ACCOUNTS WITHOUT CLAIMENTS KNOWLEDGE OR CONSENT AND MADE UNAUTHORIZED TRANSACTIONS.

$200,000.00

$41,000.00

CLIENT WAS FULLY AWARE OF ALL TRANSACTIONS AND WAS A KNOWLEDGEABLE AND SOPHISTICATED INVESTOR.

CUSTOMERS, THROUGH THEIR ATTORNEY, ALLEGED CHURNING AND UNSUITABILITY WITH REGARD TO THE HANDLING OF THEIR ACCOUNT. THEY CLAIM DAMAGES IN EXCESS OF $27,000.

CLAIM DENIED NOT PROVIDED

VANGUARD SECURITIES, INC.

Permitted to Resign

NASDR #E11980368 BIANCHINI ADMITTED DURING THE COURSE OF AN INTERNAL REVIEW TO REPAYING A CLIENT FOR LOSSES IN AN ACCOUNT.

PENDING CLIENT SUFFERED LOSSES IN HIS ACCOUNT DUE MY FAILURE TO PLACE TWO STOP LOSS ORDERS IN THEIR ACCOUNT PRIOR TO MY GOING ON VACATION. FELT IT MY RESPONSIBILITY TO REIMBURSE CUSTOMER FOR MY MISTAKE.

COMPLAINT IS AGAINST SHEARSON LEHMAN IN THE AMOUNT OF $150,000.00.

$150,000.00

$12,500.00

ALTHOUGH VEHEMENTLY DENYING ANY IMPROPRIETY REGARDING [CUSTOMER'S] ACCOUNT, THIS MATTER WAS SETTLED FOR $12,500.00 PAID BY THE FIRM TO AVOID THE RISKS AND COSTS ARBITRATIG THE CASE THROUGH HEARING. NOT PROVIDED