Customer alleges that investments were made without taking the client's risk tolerance into consideration. Client alleges that risky trading was conducted

$35,000.00

Florida Office of Financial Regulation

N/A

Order

Cease and Desist

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

$7,500.00

NOTWITHSTANDING DEFENSES AVAILABLE TO MR. STUDDARD, TO AVOID FURTHER LEGAL EXPENSES HAD THE FLORIDA OFFICE OF FINANCIAL REGULATION FILED AN ADMINISTRATIVE PROCEEDING, HE CONSENTED TO THE OFFICE'S FINDING WITHOUT ADMITTING OR DENYING IT.

CLIENT ALLEGES THAT THE ADVISOR RECOMMENDED HE TAKE A HOME EQUITY LOAN AND TO INVEST THE PROCEEDS, IN ADDITION HE IS CLAIMING THE VARIABLE UNIVERSAL LIFE THAT HE PURCHASED IN 2001 WAS NOT SUITABLE. CLIENT REQUESTED THE FIRM RECTIFY THE SITUATION.

$5,000.00

CLIENT WAS NOT ABLE TO PROVIDE ANY INFORMATION REGARDING THE HOME EQUITY LOAN TO SUBSTANTIATE HIS CLAIM. THE INSURANCE WAS FOUND TO BE SUITABLE AND TO HAVE BEEN PROPERLY DISCLOSED. NO SETTLEMENT OFFER WAS MADE TO THE CLIENT.

CLAIMANT ALLEGES THAT ADVISOR RECOMMENDED UNSUITABLE INVESTMENTS FOR HER RETIREMENT INCOME SPECIFICALLY VUL AND REIT INVESTMENTS. CLAIMANT ALLEGES THAT ADVISOR OVERSTATED HER INCOME AND ASSETS AND THAT BE FORGED HER SIGNATURE ON ACCOUNT APPLICATIONS. CLAIMANTS IS REQUESTING $333,000 IN DAMAGES

$333,000.00

$150,000.00

ALTHOUGH I WANTED TO GO TO ARBITRATION, THE COST TO DEFEND MYSELF WAS PROHIBITIVE, THEREFORE, I CONTRIBUTED $5,000 TO SETTLE THE ALLEGATIONS DURING THE TIME I WASN'T COVERED BY ERRORS AND OMISSIONS INSURANCE.

THE CLIENT ALLEGES EXCESSIVE LOSSES DUE TO UNSUITABLE RECOMENDATIONS FROM 1999 TO 2002.

$11,000.00

THE CLIENTS STATED OBJECTIVES WERE GROWTH OF CAPITAL FOR RETIREMENT. THE INVESTMENT RECOMMENDATIONS WERE MADE BASED ON THEIR INVESTMENT EXPERIENCE, RISK TOLERANCE, AND GOALS. THE CLIENT ACCEPTED THE INVESTMENT RECOMMENDATIONS AND AGREED THE PORTFOLIO MET THEIR NEEDS. HOWEVER, THEY GAVE THE REGISTERED REP, BYRON STUDDARD, A DIRECT ORDER TO BUY (UNSOLICITED)200 SHARES OF FEDERAL MOGUL, WHICH MR. STUDDARD RELUCTANTLY ACCEPTED SINCE IT WASN'T A STOCK THAT HE FOLLWED. SUBSEQUENTLY, FEDERAL MOGUL LOST MOST OF ITS VALUE.AMERICAN EXPRESS HAS DENIED CLAIM.

THE CLIENT ALLEGED THAT HER INVESTMENTS WERE NOT SUITABLE. THE CLIENT STATES THAT SHE DID NOT RECEIVE A COPY OF THE VARIABLE UNIVERSAL LIFE POLICY AFTER THE POLICY WAS ISSUED IN OCTOBER 2002

$5,000.00