Claimant alleges that he purchased an unsuitable, high-risk investments. Claimant alleges the recommendation constituted breach of contract, negligence, and failure to supervise.

$330,000.00

$14,600.00

All investments I recommended to this client were suitable and consistent with the clients risk tolerance and investment objectives. The client was well aware of the risks of investment in real estate. Before investing we discussed real estate declines in 1986 due to tax reform, and the 2008 mortgage crisis. The client's previous three real estate investments with me made a profit. While it is unfortunate that this particular real estate investment did not perform as expected primarily due to Covid19. The case was settled by my broker dealer firm to avoid the costs and uncertainties of arbitration. I did not contribute to this settlement.

CUSTOMER ALLEGES THAT VARIABLE ANNUITY SUB-ACCOUNT ALLOCATIONS SINCE FEBRUARY 2000 WERE UNSUITABLE. DAMAGES UNSPECIFIED, BUT BELIEVED TO BE OVER $5000.

$20,500.00

CUSTOMER ALLEGES THAT INITIAL ALLOCATIONS TO VARIABLE ANNUITY SUB-ACCOUNTS IN AUGUST 2001 WAS UNAUTHORIZED. I DENY THERE ALLEGATIONS, AS I BELIEVE THE ALLOCATIONS WERE SPECIFICALLY DISCUSSED AND AUTHORIZED.

$8,940.00

CLAIM HAS BEEN DENIED.

CUSTOMER ALLEGED THAT MUTUAL FUNDS PURCHASED IN DECEMBER 1999 WERE UNSUITABLE, LEADING TO LOSSES. REPRESENTATIVE DENIED ALLEGATIONS, NOTING THAT CUSTOMERS HAD SPECIFICALLY REQUESTED FUNDS THAT HAD EXPERIENCED HIGHER HISTORICAL RETURNS, AND THAT INCREASED RISKS WERE SPECIFICALLY DISCUSSED. CLAIM HAS BEEN DENIED.

$15,258.00

CLAIM HAS BEEN DENIED.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

Consent

Monetary/Fine

$6,000.00

Censure

The fixed annuity I sold was the best in the country per consumer report. It was a guaranteed product backed by the S.C. State Guaranty, My firm's products were below this standard. I was not willing to compromise my client's best interest.

WHEAT FIRST SECURITIES

Permitted to Resign

N/A ENGAGED IN SALE OF INSURANCE/ANNUITIES WITHOUT APPROVAL OF WHEAT FIRST SECURITIES

TERMINATED FROM EMPLOYMENT I HAD NO IDEA THAT IN HELPING MY CLIENTS FILL THEIR NEEDS THAT I COULD BE FIRED FROM MY JOB AT WHEAT FIRST. I HAVE NOT GENERATED INCOME FOR TWO WEEKS AND WHEN I CAN PERHAPS, 1 1/2 MONTHS MAY PASS. I AM VERY SORRY THIS HAPPENED AND WAS TOO NAIVE AS TO THE SEVERITY OF THIS OCCURANCE. DUE TO LOSS OF INCOME & CLIENTS I HOPE YOU SEE I HAVE PAID QUITE A PRICE.

MISREPRESENTED RISK OF KEMPER HIGH YIELD FUND AND CLOSED END BOND FUNDS. CUSTOMER SOUGHT DAMAGES IN EXCESS OF $40,000

$40,000.00

$20,000.00

MATTER SETTLED FOR $20,000 TO AVOID TIME AND EXPENSE OF ARBITRATION DISPUTE. RESPONDENTS DENY & CONTINUE TO DENY ALLEGATION ASSERTED AGAINST THEM. THE CLIENTS WERE FACED WITH DECLINING PRINCIPAL DUE TO AGGRESSIVE INCOME NEED FOR MEDICINE. THIS NEED INSPIRED THEM TO CALL ME FOR HELP. THEIR AGGRESSIVE OBJECTIVE OF DESIRE & NEED FOR HIGH INCOME DICTATED THEIR INVESTMENT. THE KEMPER HIGH YIELD FUND, AFTER DECLINING A LOWER YIELDING SAFER INVESTMENT. THEY WERE WARNED THAT PRINCIPAL COULD FLUCTUATE. SUMMARY THEIR OBJECTIVE DICTATED THEIR INVESTMENT. I DISCLOSED WHAT IT WAS & NO GUARANTEE AND THAT PRICES COULD GO UP & DOWN. MY TONE WAS OF CONCERN. VERY FEW OF MY CLIENT OWN THIS TYPE OF INVESTMENTS. I HAVE NO FAULT TO WHAT OCCURED