CASGRAIN & COMPANY (USA) LIMITED

Discharged

MISPRICING OF CERTAIN SECURITIES INVENTORY FOR WHICH HE WAS RESPONSIBLE

NESBITT BURNS SECURITIES INC

Voluntary Resignation

I RESIGNED FROM NESBITT BURNS SECURITIES INC. IN RESPONSE TO ALLEGATIONS THAT I HAD ASSIGNED INCORRECT VALUES TO SECURITIES ON BOOKS THAT I MANAGED AND THAT I HAD FAILED TO DISCLOSE SUCH IMPROPER VALUATIONS TO MY EMPLOYER.

DURING THE FALL OF 1998,DUE TO UPHEAVALS IN THE MARKET,THE VALUES OF THE YANKEE BONDS ON MY BOOK HAD BECOME OVERSTATED,AND THE FIRM WAS ATTEMPTING TO LIQUIDATE ITS POSITIONS IN THE BONDS ENTIRELY.THE FIRM WAS LARGELY UNSUCCESSFUL IN THIS EFFORT,AND BY JANUARY AND FEBRUARY OF 1999,I HAD BEEN ASKED TO JUSTIFY THE POSITIONS ON MY BOOK BUT COULD NOT DO SO.I VOLUNTARILY RESIGNED FROM NESBITT BURNS SECURITIES,INC NOW CASGRAIN & CO ON MARCH 4,1999 AFTER MEETING WITH REPRESENTATIVES TO DISCUSS THE MATTER.