[CUSTOMER] ALLEGES THAT THE RISKS OF THE HYPERION 2002 TERM TRUST WERE NOT CLEARLY EXPLAINED TO HER AND SHE FURTHER BELIEVES THAT THE INVESTMENT WAS UNSUITABLE.

$15,729.00

THE FIRM ELECTED TO SETTLE THIS MATTER FOR $15,729.00. THIS WAS BUSINESS DECISION MADE SOLELY TO AVOID THE COSTS AND EXPENSES OF LITIGATION. REGISTRANT CONTINUES TO DENY ALL LIABILITY. THIS MATTER CONCERNS IN PART AN INVESTMENT IN THE HYPERION 1999, 1997 OR 2002 TERM TRUSTS. THESE ARE CLOSED AND DIVERSIFIED MUTUAL FUNDS WHICH INVEST EXCLUSIVELY IN AAA RATED GOVERNMENT OR GOVERNMENT AGENCY SECURITIES. THE OBJECTIVE OF THE FUNDS IS TO ACHIEVE A HIGH LEVEL OF CURRENT INCOME RELATIVE TO INTERMEDIATE TERM TREASURY SECURITIES CONSISTENT WITH INVESTING ONLY IN SECURITIES OF THE HIGHEST CREDIT QUALITY AND TO RETURN THE OFFERING PRICE TO INVESTORS AT TERMINATION IN THE YEAR IN THE TITLE OF EACH FUND. THE HYPERION FUNDS EXPERIENCED DECLINES IN CURRENT PRICE, NET ASSET AND DIVIDENDS DUE TO INCLINES IN INTEREST RATES AND GREATER THAN CORRESPONDING INCREASES IN HOME MORTGAGE REFINANCING. CLASS ACTION LAWSUITS HAVE BEEN FILED WITH RESPECT TO THE HYPERION FUNDS. THIS INVESTOR CHOSE TO PURSUE CLAIMS INDIVIDUALLY.