WELLS FARGO CLEARING SERVICES, LLC

Discharged

During the course of an internal investigation financial advisor admitted using discretion to trade in family's trust account and advisor was then discharged. No customer harm identified.

CLAIM ALLEGES UNSUITABILITY WITH REGARD TO MUTUAL FUNDS PURCHASED IN 2003 AND 2004.

$100,000.00

THOUGH THE LAWSUIT IS NOT AGAINST ME SPECIFICALLY, I WANTED TO MAKE A COUPLE OF COMMENTS. THIS INVESTMENT WAS PORTRAYED BY MORGAN KEEGAN AND THE MANAGER AS BEING A SOMEWHAT CONSERVATIVE VERSION OF A HIGH YIELD FUND, AND IT BEHAVED LIKE THAT FOR SEVERAL YEARS UNTIL THE BUBBLE BURST IN ASSET-BACKED SECURITIES IN 2008. I GOT THE CLIENT OUT OF MUCH OF HIS POSITION BEFORE THE SECURITY PLUMMETED, AND WE GOT OUT OF THE REST A BIT DOWN THE ROAD. HIS TAXABLE LOSS WAS CLOSE TO $50,000 BECAUSE OF THE REINVESTED DIVIDENDS RAISING THE COST BASIS; HOWEVER, IN HARD DOLLARS HE DIDN'T ACTUALLY LOSE MUCH OR ANY MONEY.

CLAIM ALLEGES UNSUITABILITY WITH REGARD TO MUTUAL FUNDS PURCHASED IN 2006.

$200,000.00

$51,620.01

**UPDATE - THIS DISCLOSURE IS NO LONGER REPORTABLE ON THE CURRENT U4 BECAUSE IT WAS FILED MORE THAN 24 MONTHS AGO AND DID NOT SETTLE FOR $15,000 OR MORE** CLAIM ALLEGES MISREPRESENTATION AND UNSUITABILITY WITH REGARD TO MUTUAL FUNDS PURCHASED IN 2004.

$22,411.31

**UPDATE - THIS DISCLOSURE IS NO LONGER REPORTABLE ON THE CURRENT U4 BECAUSE IT WAS FILED MORE THAN 24 MONTHS AGO AND DID NOT SETTLE FOR $15,000 OR MORE** MORGAN KEEGAN AND CLAIMANTS' COUNSEL AGREED IN AUGUST 2010 TO RESOLVE THIS CASE BY SETTLEMENT FOR A NOMINAL AMOUNT. AFTER REPEATED ATTEMPTS TO OBTAIN A SETTLEMENT AGREEMENT EXECUTED BY CLAIMANTS, ONE HAS NEVER BEEN PROVIDED AND THE PROPOSED SETTLEMENT PAYMENT WAS NEVER MADE BY MORGAN KEEGAN. WE CONSIDER THIS CASE WITHDRAWN.