Mr. Coffman states: "July of 2008 Client made an investment in a Cypress Income Fund. Based on information provided by Client and attested to by Client's own signature, they were investing only 3.3% of their investable assets. They subsequently received income from the investment for several years and after the company began to register significant declines the client made a claim that the investment was over-concentrated, unsuitable and inconsistent with client's investment objectives and risk tolerance. Feeling they had sustained unnecessary losses and hoping to recover said losses, they filed a claim in August of 2019, 11 years later. The Claim was brought only against the broker dealer H. Beck Inc., and the registered representative Loran Coffman was excluded from the claim. In October of 2020, the Broker Dealer H. Beck Inc., took it upon themselves to settle the case for $12,000.00. They took this action on their own volition without any proof of wrongdoing or violations of any rules or regulatory laws by Loran Coffman. It should be noted that this settlement does not substantiate any of the client's accusations made regarding the Cypress Income Fund investment nor represent any conclusion of wrongdoing by Loran Coffman."

$150,000.00

$12,000.00

THE CLIENT CLAIMS THAT HE WAS SOLD NY MUNI AUCTION RATE SECURITIES AND IT WAS NOT DISCLOSED THE RISKS AND THE FACT THAT CERTAIN AUCTIONS WERE FAILING AT THE TIME OF THE SALES. ACTIVITY PERIOD: 07/23/2008 - 08/28/2008.

$1,000,000.00

RESPONSE TO DUPLICATE ALLEGATION: A FAILED AUCTION OF AUCTION RATE SECURITIES, "ARS", DOES NOT RESULT IN A DEFAULT OR A LOSS OF CAPITAL; IT IS AN INDICATION OF A LACK OF LIQUIDITY IN THE MARKETPLACE. THE CLIENT HAS CONTINUED TO RECEIVE INTEREST AT THE FAILED AUCTION RATE FOR THE ENTIRE TIME THAT THE POSITIONS WERE HELD AND AS OF NOVEMBER 29TH 2013, THE SECURITIES HAVE BEEN FULLY REDEEMED AT FACE VALUE ALONG WITH ALL THE INTEREST THE CLIENT EARNED. FINAL DISPOSITION: CLIENT EXPERIENCED NO LOSS. CLIENT RECEIVED THEIR ENTIRE INITIAL INVESTMENT PLUS INTEREST.

THE CLIENT CLAIMS THAT HE WAS SOLD NY MUNI AUCTION RATE SECURITIES AND IT WAS NOT DISCLOSED THE RISKS AND THE FACT THAT CERTAIN AUCTIONS WERE FAILING AT THE TIME OF THE SALES. ACTIVITY PERIOD: 07/23/2008 - 08/28/2008.

$1,500,000.00

A FAILED AUCTION OF AUCTION RATE SECURITIES, "ARS", DOES NOT RESULT IN A DEFAULT OR A LOSS OF CAPITAL; IT IS AN INDICATION OF A LACK OF LIQUIDITY IN THE MARKETPLACE. THE CLIENT HAS CONTINUED TO RECEIVE INTEREST AT THE FAILED AUCTION RATE FOR THE ENTIRE TIME THAT THE POSITIONS WERE HELD AND AS OF NOVEMBER 29TH 2013, THE SECURITIES HAVE BEEN FULLY REDEEMED AT FACE VALUE ALONG WITH ALL THE INTEREST THE CLIENT EARNED. FINAL DISPOSITION: CLIENT EXPERIENCED NO LOSS. CLIENT RECEIVED THEIR ENTIRE INITIAL INVESTMENT PLUS INTEREST.

UNAUTHORIZED AND UNSUITABLE PURCHASE

$133,500.00

THE CLIENT RETRACTED HIS PREVIOUS DEMAND FOR RESCISSION OF THE INVESTMENT IN QUESTION AND DETERMINED THAT THE REP'S ACTION "WERE CONSISTENT WITH THE TERMS OF THE CERTAIN DISPOSITIVE PROVISIONS".