CLIENT ALLEGED MISREPRESENTATION REGARDING THE RISKINESS AND THE LIQUIDITY OF THE INVESTMENT HE PURCHASED IN 2004 AND 2005

$65,000.00

$18,742.95

THE REPRESENTATIVE CATEGORICALLY DENIES THE CLAIMS ALLEGED BY THE CLAIMANT

THE CLIENTS' ATTORNEY ALLEGED THAT THE REPRESENTATIVE MISREPRESENTED THE FEES INVOLVED AND THE POTENTIAL FOR MARKET LOSS.

$140,000.00

THE ALLEGATIONS ARE COMPLETELY UNTRUE.THE REPRESENTATIVE HELD NUMEROUS MEETINGS WITH THE CLIENTS THROUGHOUT THEIR 11 YEAR RELATIONSHIP. SHE SAYS SHE THOROUGHLY EXPLAINED ALL FEES, FEATURES AND RISKS OF THE VARIABLE ANNUITIES. HER ROLE AS FINANCIAL ADVISOR WAS CLEARLY DISCUSSED WITH THE CLIENTS DURING THESE MEETINGS. THE ANNUITIES WERE SUITABLE FOR THE CLIENTS BECAUSE THEY WERE SEEKING LONG TERM TAX DEFERRED GROWTH AND HAD A RISK TOLERANCE EQUAL TO THE ASSET ALLOCATION THEY CHOSE TOGETHER WITH THE REPRESENTATIVE. SHE FULLY EXPLAINED THE RISK TO PRINCIPAL INSIDE THE VARIABLE ANNUITY AND IN THER OTHER INVESTMENTS WHICH ARE NOT THE SUBJECT OF THEIR COMPLAINT. THE CLIENTS WERE LONG TERM INVESTORS APPARENTLY COMFORTABLE WITH THE VOLATILITY IN THEIR INVESTMENTS FOR 11 YEARS UNTIL THE MARKET BEGAN DROPPING IN MARCH 2009. THE CLIENTS THEN CHOSE TO SELL OUT AT THE BOTTOM OF THE MARKET ON MARCH 6, 2009 AND BEGAN BUYING BACK IN 10 DAYS LATER.