CUSTOMER ALLEGES SALES PRACTICE VIOLATION.

$14,882.45

$14,882.45

NO WRITTEN COMPLAINT WAS SUBMITTED, BUT AGREEMENT WAS REACHED TO RETURN INITIAL INVESTMENTS INCURRING MARKET LOSSES TO BE PAID BY REPRESENTATIVE.

CLAIMANTS BEGAN INVESTING WITH THIS REGISTERED REP IN VARIABLE ANNUITY PRODUCTS IN THE FALL OF 2001. CLAIMANTS ALLEGE UNSUITABLE RECOMMENDATIONS, NEGLIGENCE, MISREPRESENTATION & FRAUD.

$500,000.00

$50,000.00

THIS CASE WAS SETTLED AT ADVICE OF COUNCIL DUE TO COST TO DEFEND. CLIENT FILED A COMPLAINT ALLEGING THAT HE DID NOT UNDERSTAND THE TAX CONSEQUENCES REGARDING WITHDRAWLS FROM HIS INVESTMENTS. THE CLIENT HAD BEEN PROVIDED AN EXPLANATION OF TAX ISSUES & WAS ALSO ADVISED TO CONTACT A TAX ADVISOR.

ILLINOIS SECURITIES DEPARTMENT

RESPONDENT SOLD UNREGISTERED PROMISSORY NOTES OR INVESTMENT CONTRACTS ISSUED BY DIRECT PARTICIPATION SERVICES, INC. D/B/A GOVERNMENT FINANCIAL TO ILLINOIS RESIDENTS.

Consent

NOTICE OF HEARING ISSUED NOVEMBER 4, 1996. HEARING SET JANUARY 15, 1997. A CONSENT ORDER OF PROHIBITION WAS ISSUED, JANUARY 15, 1997. THE RESPONDENT IS PROHIBITED FROM OFFERING OR SELLING ANY SECURITIES AND ACTING AS A SALESPERSON IN THE STATE OF ILLINOIS UNLESS IN COMPLIANCE WITH THE ACT. THE RESPONDENT WAS ASSESSED $500 FOR THE COSTS OF INVESTIGATION IN THIS MATTER.

IN 1995 I WAS WORKING WITH A REPUTABLEINSURANCE AGENCY THAT HAD BEEN AROUND FOR ALMOST 30 YEARS. THE OWNERS WERE SELLING COMMERICIAL PAPER/PROMISSORY NOTES TO THEIR CLIENTS AND ORDERED ME TO SELL THEM. THEY SAID THEY CHECKED WITH THE STATE OF IL & WE DIDN'T HAVE TO BE LICENSED TO SELL THIS PRODUCT SICE IT WAS A 9 MONTH COMMERCIAL PAPER. I SOLD ONE & WAS FINED. THE OWNERS FOUGHT THE STATE & WON, BUT I COULD NOT AFFORD THE LAWYERS THEY HAD.