CUSTOMER COMPLAINED THAT HER ACCOUNTS WERE MISMANAGED AND PERFORMED POORLY FROM MARCH OF 2000 UNTIL 2006. ALLEGED DAMAGES UNSPECIFIED, BUT BELIEVED TO BE MORE THAN $5,000.00

AFTER INVESTIGATION OF CUSTOMER COMPLAINT, IT WAS DETERMINED THAT FA ACTED PROPERLY AND NO SALES PRACTICE VIOLATIONS OCCURRED. COMPLAINT DENIED.

CUSTOMERS ALLEGED THAT FINANCIAL ADVISOR FAILED TO DISCLOSE FEES ASSOCATED WITH B-SHARE MUTUAL FUNDS. ALLEGED DAMAGES ARE UNSPECIFIED BUT BELIEVED TO BE $5,000 ORE MORE.

CLIENT HAS ALLEGED THAT I PURCHASED AN UNAUTHORIZED AMOUNT OF A PREFERRED SECURITY. THE CLIENT BELIEVES THAT THE AMOUNT WAS TO BE $5,000.00, AND I PURCHASED $25,000.00 OF THE SECURITY. THE FIRM AND I EMPHATICALLY DENY THAT THERE WAS AN UNAUTHORIZED DOLLAR AMOUNT OF THE SECURITY PURCHASED IN THE CLIENTS ACCOUNT. IN FACT, ON THE SAME DAY THE CLIENT PURCHASED $25,000.00 OF A SIMILAR TYPE PREFERRED SECURITY THAT IS NOT IN QUESTION.

SHEARSON LEHMAN BROTHERS INC.

Permitted to Resign

N/A SIGNING A CLIENTS NAME TO A STOCK POWER

PERMITTED TO RESIGN THE CLIENT SENT IN A STOCK CERTIFICATE UNSIGNED. HE WAS SENT THE INCORRET PAPERWORK AND INSTRUCIONS THREE TIMES FROM MY OPERATIONS DEPARTMENT. WHEN I EXPLAINED TO HIM THAT WE HAD TO SEND HIM ANOTHER STOCK POWER ( FOR THE FOURTH TIME) HE WAS IN DISBELIEF AND BECAME FRUSTRATED ESPECIALLY SINCE APPROXIMATELY 2 WEEKS HAD GONE BY, THE CERTIFICATE HAD NOT BEEN PUT IN HIS ACCOUNT NOR HAD HIS INSTRUCTIONS PERTAINING TO THE CERTIFICATE BEEN EXECUTED. AT THIS POINT, THE CLIENT ASKED ME TO DO HIM A FAVOR SIGN THE STOCK POWER FOR HIM SO THIS MATTER COULD BE OVER.