NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.

NASD RULE 2110 - WITHOUT ACCEPTING OR DENYING THE ALLEGATIONS, RESPONDENT CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS THAT WHILE EMPLOYED AT A MEMBER FIRM, ACCEPTED AND EXECUTED ORDERS FROM AN INDIVIDUAL FOR THE ACCOUNT OF A PUBLIC CUSTOMER AT THE FIRM. HOWEVER, SANDERS NEVER RECEIVED A WRITTEN POWER OF ATTORNEY CONVEYING SUCH AUTHORITY TO THE INDIVIDUAL AND THEREFORE SHOULD NOT HAVE ACCEPTED ORDERS FROM THE INDIVIDUAL.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$2,500.00

FINED $2,500, JOINTLY AND SEVERALLY

FINED $2,500, JOINTLY AND SEVERALLY

DURING THE MONTH OF APRIL, THE CUSTOMER ALLEGED THAT I EXECUTED UNAUTHORIZED TRADES IN HIS ACCOUNT. THESE ALLEGATIONS ARE UNTRUE. I ALWAYS RECEIVED APPROVAL FOR ANY TRADES EXECUTED. LADENBURG THALMANN HAS JOINED ME IN DISPUTING THESE ALLEGATIONS.

$6,000.00

LADENBURG FOUND NO MERIT TO THE ALLEGATIONS PRESENTED IN THE CUSTOMER'S COMPLAINT.