CUSTOMER ALLEGES THE VARIABLE ANNUITY CONTRACT HE PURCHASED IN MARCH 2000 WAS MISREPRESENTED AS HAVING A GUARANTEED DEATH BENEFIT AND WOULD NOT LOSE PRINCIPAL.

$14,104.89

$13,554.23

WITHOUT ADMITTING LIABILITY OR WRONGDOING, THE FIRM AND REPRESENTATIVE ENTERED INTO A SETTLEMENT AGREEMENT WITH THE CUSTOMER IN EXCHANGE FOR A RELEASE OF ALL CLAIMS. THE SETTLEMENT WAS MADE SOLELY FOR BUSINESS REASONS AND TO AVOID A LENGTHY AND COSTLY LEGAL PROCEEDING.

CLIENT WROTE IN ALLEGING THE REP HAS PERPERATED A CRIMINAL ACT AND "TOOK" HER DECEASED HUSBAND'S RETIREMENT ACCOUNT AND "GAVE IT TO A 'STEP DAUGHTER'." IT IS CLEAR FROM THE OUTSET THAT NO "THEIVERY" HAS ACTUALLY TAKEN PLACE. THE FUNDS WERE INVESTED INTO A FIXED ANNUITY. SYSTEMATIC WITHDRAWALS HAVE BEEN MADE PAYABLE TO [CUSTOMER] AND SENT TO ADDRESS OF RECORD. THERE IS NO EVIDENCE OF "THEIVERY."

IT WAS IMMEDIATELY CLEAR FROM THE OUTSET OF OUR INVESTIGATION THAT THE CLIENT'S FUNDS WERE NOT STOLEN BY THE REP AS ALLEGED. THE CLIENT'S CONTRACT IS STILL ACTIVE, FULLY FUNDED, AND PROVIDING SYSTEMATIC INCOME FOR THE CLIENT IN THE FORM OF CHECKS MADE PAYABLE TO HER AND SENT TO THE ADDRESS OF RECORD. WE FOUND THESE ALLEGATIONS TO BE COMPLETELY WITHOUT MERIT AND CLOSED THE MATTER. THE CLIENT SUBSEQUENTLY WROTE ANOTHER LETTER TO THE FIRM EXONERATING THE RR FROM ANY WRONGDOING AND WITHDREW HER COMPLAINT AGAINST HIM. SHE NEVER MEANT TO ACCUSE THE RR OF ANY "THIEVERY" AND STATED HE "WAS UPRIGHT AND HONEST" WITH HER AT ALL TIMES.