THE CLIENT STATES IN THE SPRING OF 2012 SHE LIQUIDATED HER 401K WITH AN ACCOUNT VALUE OF $61,828.64 TO PAY DOWN DEBT PRIOR TO FILING BANKRUPTCY. THE CLIENT CLAIMS THIS WAS DONE AS A RESULT OF ADVICE PROVIDED BY THE FINANCIAL ADVISOR. THE CLIENT IS REQUESTING REMIBURSEMENT OF THE VALUE OF THE ACCOUNT AS LIQUIDATION OF THE ACCOUNT WAS NOT NECESSARY.

$61,828.64

AFTER COMPLETION OF THE FIRM'S INVESTIGATION, IT WAS DETERMINED THE FINANCIAL ADVISOR DID NOT OFFER THE ADVICE CLAIMED BY THE CLIENT AND THE REQUEST FOR REIMBURSEMENT WAS DENIED.

7/20/09; CLIENT INDICATES HE RECEIVED VERY POOR BUSINESS ADVICE FROM THE FA. CLIENT STATES HE WAS INFORMED BY FA THAT CITI CORP WAS GOING TO DECLARE BANKRUPTCY AND SHE ADVISED HE SELL THE BOND. CLIENT INDICATES HE HAS LATER LEARNED THAT CITI HAS YET TO FILE BANKRUPTCY AND BONDHOLDERS ARE PAID FIRST AFTER BANKRUPTCY. CLIENT STATES THEY SHOULD HAVE NEVER TOOK THE LOSS OF $18,943.84 ON THE BOND.

$18,943.84

ACCORDING TO FA, SHE CONTACTED CLIENT ON JULY 20, 2009 TO REVIEW THE CIT BOND THAT WAS HELD IN THE ACCOUNT. DUE TO THE UNCERTAINTY OF THE FUTURE OF CIT GROUP AND BASED ON CLIENT'S DISCUSSION WITH FA, THE DECISION WAS MADE TO SELL THE CIT BOND. WHILE CIT GROUP HAD NOT FILED BANKRUPTCY AT THE TIME THE CLIENT SENT THE LETTER, CIT DID FILE FOR A PREPACKAGED BANKRUPTCY ON NOVEMBER 1, 2009. WE CERTAINLY UNDERSTAND CLIENT'S DISAPPOINTMENT IN THE LOSS INCURRED ON THE CIT BOND SALE; HOWEVER, THERE ARE RISKS ASSOCIATED WITH OWNING ANY INVESTMENT. CLAIM DENIED.