CUSTOMER ALLEGED THAT REPRESENTATIVE MISREPRESENTED THE PERFORMANCE AND ASSETS UNDER MANAGEMENT OF A MUNICIPAL BOND FUND PURCHASED IN FEBRUARY 2015 AND SOLD IN JANUARY 2016, ALTERED A DOCUMENT TO MISREPRESENT THE MARTIAL STATUS OF HE AND HIS EX-SPOUSE, SUBMITTED A FORGED INSTRUMENT, AND MISREPRESENTED HIS EXPERIENCE IN THE SECURITIES INDUSTRY.

$37,500.00

COMPLAINT HAS BEEN DENIED. THE MUTUAL FUND PURCHASE WAS FULLY DISCUSSED AND AUTHORIZED, AND CUSTOMER IS AN EXPERIENCED INVESTOR WHO INDICATED AN INVESTMENT TIME HORIZON OF 5-10 YEARS. NO DOCUMENTS WERE ALTERED AFTER SIGNATURE, AS ALL ENTRIES WERE COMPUTER GENERATED AND THUS ON THE DOCUMENTS WHEN THE CUSTOMER SIGNED THEM. THE CUSTOMER INSTRUCTED THAT HE AND HIS EX-WIFE BE IDENTIFIED AS SPOUSES. THE CUSTOMER DID NOT SPECIFY WHICH INSTRUMENT HE ALLEGES TO HAVE BEEN FORGED, BUT ALL DOCUMENTS APPEAR TO BEAR GENUINE SIGNATURES. REPRESENTATIVE DID NOT MISREPRESENT HIS EXPERIENCE IN THE SECURITIES INDUSTRY. THE CUSTOMER'S ALLEGATIONS OF INVESTMENT LOSS ARE ERRONEOUS, AS TOTAL DECLINE IN VALUE IN LESS THAN ONE YEAR DUE TO MARKET FLUCTUATION WAS APPROXIMATELY $10,000 (APPROXIMATELY 2%).

STATEMENT OF CLAIM CONTAINS ALLEGATIONS OF NEGLIGENCE, FAILURE TO SUPERVISE, MISREPRESENTATIONS/NON-DISCLOSURES, OMISSION OF FACTS AND MANIPULATIONS IN CONNECTION WITH A VARIABLE ANNUITY PURCHASE N NOVEMBER 1997. ALLEGED COMPENSATORY DAMAGE DOLLAR AMOUNT IS SPECIFIC TO A LOST DEATH BENEFIT, AND IS EXCLUSIVE OF FORUM FEES, ATTORNEYS FEES, PUNITIVE DAMAGES, WITNESS AND PRODUCTION FEES AND OTHER CASE-RELATED COSTS REFERENCED IN STATEMENT OF CLAIM

$30,000.00

$17,000.00

MATTER WAS SETTLED THROUGH MEDIATION WITHOUT ANY ADMISSION OF WRONGDOING AND WITH NO FINANCIAL PARTICIPATION BY THE FINANCIAL CONSULTANT. WM FINANCIAL SERVICES AND ALLMERICA EACH CONTRIBUTED 50% OF THE SETTLEMENT AMOUNT.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

NASD RULES 2110, 3030 - RESPONDENT ENGAGED IN OUTSIDE BUSINESS ACTIVITIES, FOR COMPENSATION, WITHOUT PROVIDING PROMPT WRITTEN NOTICE TO HIS MEMBER FIRM.

Acceptance, Waiver & Consent(AWC)

Monetary/Fine

$10,000.00

Suspension

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, AGUADO CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS, THEREFORE, HE IS FINED $10,000 AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR 30 DAYS. SUSPENSION EFFECTIVE MAY 5, 2003 TO CLOSE OF BUSINESS JUNE 3, 2003.

ESSEX NATIONAL SECURITIES INC

Voluntary Resignation

PERMITTED TO RESIGN/ I SOLD 3 FIXED ANNUITIES FOR AN OUTSIDE AGENCY THAT WAS UNAFFILIATED WITH ENSI

I SOLD 3 ANNUITIES FOR AN OUTSIDE AGENCY