Claimant has purchased several GWG products since 2016. GWG filed Chapter 11 bankruptcy as a debtor in possession in April 2022. Claimant files this claim against Respondent Arque for a few causes of action including but not limited to breach of fiduciary duty, breach of contract, negligence and violation of various state and federal securities laws. Claimant files this claim against Respondent Scanlon for control person liability.

$635,000.00

Claimants' claims are without merit. Respondents deny all allegations in their entirety.

Claimant has purchased a number of GWG products since 2011. GWG filed Chapter 11 bankruptcy as a debtor in possession in April 2022. Claimant files this claim against Respondent Arque for a number of causes of action including but not limited to breach of fiduciary duty, breach of contract, negligence and violation of various state and federal securities laws. Claimant files this claim against Respondents Kuwabara, Ning and Scanlon for control person liability. Respondents deny all allegations in their entirety.

$1,700,000.00

$230,208.89

Claimants' claims are without merit. Respondents deny all allegations in their entirety.

Violations of federal securities laws; violations of Securities Act of Arizona; violations of Arizona Consumer Fraud Act; violations of California securities laws; California unfair, unlawful and fraudulent business practices; breach of contract; common law fraud; breach of fiduciary duty; negligence and gross negligence.

$281,000.00

$53,114.95

Respondent Arque Capital denies all allegations.

Breach of contract, warranties and promissory estoppel; violation of state securities statutes; breach of fiduciary duty; claims under common law; vicarious liability.

$50,000.00

$7,610.69

Respondent Arque Capital denies all allegations.

Claimant alleges, among other things, failure to supervise, failure to conduct due diligence, unsuitable investment, which resulted in the alleged damages. Alleged investment was consistent with Claimant's investment objectives and risk tolerance. Claimant's allegations are without merit. Respondents deny all liability.

$100,001.00

$29,135.86

Claimant is a sophisticated investor, was well aware of the risks of the investment and acknowledged those risks. Claimant's allegations are without merit. Respondents deny all liability.

PRUDENTIAL SECURITIES INCORPORATED

Discharged

N/A VIOLATING THE FIRM`S BOOKS AND RECORDS POLICY.

REGISTERED REPRESENTATIVE RESIGNED. REGISTERED REPRESENTATIVE DENIES ANY VIOLATION.

NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

Acceptance, Waiver & Consent(AWC)

Monetary/Fine

$7,425.00

Censure

Not Provided

MR. [CUSTOMER] ALLEGED IN A WRITTEN COMPLAINT THAT MR. SEANTON EXERCISED DISCRETION IN CORP. AUTS. CONTROLLED BY THE [CUSTOMER]FAMILY. MR. [CUSTOMER]COMPLAINT ALLEGED UNSPECIFIED DAMAGES.

$165,045.00

MR. SCANTON WAS TERMINATED ON NOVEMBER 17, 1997. FIRM SETTLED COMPLAINT FOR $165,045.00 MR. SCANTON DENIED DISCRETION IN CORPORATE ACCTS.

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

Permitted to Resign

DISCRETIONARY TRADING DISCRETIONARY TRADING

Not Provided ACCUSED OF DISCRETIONARY TRADING BY CLIENT - CLIENT WAS INVOLVED IN SYNDICATE BUSINESS OF BUYING & SELLING NEW ISSUES INTRODUCED TO IT BY 24 YR OLD SON - AFTER 6 MONTHS 27 YR OLD SON COMPLAINED. DIDN'T BELIEVE MOTHER SHOULD BE DOING THIS COMPLAINT RESULTED IN DISCRETIONARY VIOLATION AND A $15,000 CLAIM TO CLIENT. DISCRETION CAME BECAUSE CLIENT WAS NOT INFORMED OF SELL SIDE AS TO TAX - PRICE.

[CUSTOMER] ALLEGED THAT MR. SCANLON EXERCISED UNAUTHORIZED DISCRETION IN HER ACCOUNT. ALLEGATION WAS MENTIONED IN LETTER WRITTEN BY [FAMILY MEMBER], [CUSTOMER'S] SON. LOSSES ALLEGED TO BE AROUND $18,000.00

$18,000.00

$18,000.00

TERMINATED ON 11/17/94. BEFORE TERMINATION AGREED TO REIMBURSE FIRM LOSSES TO [CUSTOMER] AT THAT TOTAL AROUND $18,000.00 - PAID $3000.00 TO FIRM INVOLVED [CUSTOMER] IN SOME SYNDICATE BUSINESS THAT HER SON [FAMILY MEMBER] WAS DOING. [CUSTOMER] WAS AWARE OF BUYS-SELLS ON TRUST ISSUES, HOWEVER MERRILL LYNCH ALLEGED I USED DISCRETION ON SELL ORDERS ON TIME AND PRICE

THE CUSTOMER ALLEGED INAPPROPRIATE, UNAUTHORIZED AND/OR NONDISCLOSURE OF DEFERRAL CHARGES. NO SPECIFIC DAMAGE AMOUNT WAS ALLEGED.

$10,000.00

TO AVOID THE COST & UNCERTAINTIES OF AN ARBITRATING THE FIRM MADE A BUSINESS DECISION TO SETTLE THIS MATTER FOR $10,000. MR SCANLON DENIED ANY UNAUTHORIZED TRADING, INAPPRORIATE AND/OR NON DISCLOSURE OF DEFERRED SALES CHARGE. MR. SCANLON MET W/ CLIENTS IN MERRILL LYNCH OFFICE.