CLIENT ALLEGES MISREPRESENTATION AND UNSUITABLE RECOMMENDATION RELATING TO THE LIQUIDITY OF AN AUCTION RATE SECURITY. CLIENT REQUESTE THE RETURN OF THEIR ORIGINAL INVESTMENT. ACTIVITY DATES 7/13/2005.

$100,000.00

IN JULY OF 2005, I HELPED THE CLIENTS DEPOSIT $250,000 INTO AUCTION RATE SECURITIES. THEY DID WITHDRAW $150,000 DURING ONE OF THE SECURITIES ROLLOVERS. IN MARCH OF 2006 I TRANSFERRED TO ANOTHER WASHINGTON MUTUAL BRANCH IN SOUTHERN CA. AT THAT TIME, THE ACCOUNT WAS REASSIGNED TO THE LOCAL FINANCIAL CONSULTANT AS IT WAS WASHINGTON MUTUAL'S POLICY THAT BROKERAGE ACCOUNTS BE ASSIGNED TO THE FINANCIAL CONSULTANT ASSIGNED TO THE BRANCH THE ACCOUNT WAS ORIGINATED IN RATHER THAN TO FOLLOW THE FINANCIAL ADVISOR TO THEIR NEW BRANCH. OUT OF PROFESSIONAL COURTESY TO THE NEW FINANCIAL ADVISOR ASSIGNED TO THE ACCOUNT, I HAVE NOT SPOKEN WITH THEM SINCE MARCH OF 2006. THE CLIENTS HAD THE ABILITY TO WITHDRAW ALL OF THE FUNDS PLUS INTEREST AS THE SECURITIES ROLLED OVER EVERY 14 OR 30 DAYS FROM THE TIME OF PURCHASE 7-13-2005 THROUGH JANUARY OF 2008.