MISREPRESENTATION - ACTIVITY DATES ARE FROM 10/2008 THRU PRESENT. PRODUCT IS AUCTION RATE SECURITIES - CLOSED END FUND.

$200,000.00

$175,000.00

I DID NOT MISREPRESENT THE AUCTION RATE SECURITIES TO THE CLIENT. THE CLIENT DID NOT LOSE ANY MONEY. UNBEKNOWST TO ME, MY ASSISTANT DID REFER TO THE ARS AS WEEKLY CD'S.

CAPITAL BROKERAGE CORPORATION

Discharged

Not Provided WRITING AND SENDING A LETTER TO A PROSPECTIVE CLIENT. MR. E.H. WALTON, THAT WAS DEEMED INAPPROPRIATE BY GNA.

GNA SECURITIES SETTLED WITH MR. WALTON FOR $4,000, WHICH WAS THE AMOUNT OF THE SALES CHARGE. GNA SECURITIES INFORMED ME BY LETTER THAT THEY WERE TERMINATING ME BECAUSE OF A LETTER SENT TO A MR. E.H. WALTON. IT IS AND WAS MY BELIEF THAT THE TRUE REASONS WERE: 1) COMPLAINTS BY ME AS TO GNA'S VERY LOW COMPENSATION SYSTEM AND 2) THE S&L I WORKED IN BEING TAKEN OVER BY THE RTC. I ANSWERED NO TO THIS QUESTION IN THE PREVIOUS U-4 BECAUSE I WAS TOLD VERBALLY BY SEVERAL EMPLOYEES OF THE S&L THAT THE TERMINATION RESULTED FROM THE TAKE OVER OF THE S&L.