CLIENT VIA ATTORNEY ALLEGES UNSUITABILITY AND CHURNING FROM 12/28/00 THROUGH END OF 2001. SEEKS RELEASE OF CLAIMS ON DUPLICATE PAYMENTS OF $14,237 MADE TO CLIENT. NO SPECIFIC DAMAGES REQUESTED.

$14,232.00

$7,081.22

MR. SIER DENIES THE ALLEGATIONS AND BELIEVES THAT THEY ARE TOTALLY WITHOUT MERIT. THE CUSTOMER'S ALLEGATIONS WERE MADE ONE YEAR LATER, IN RESPONSE TO A CLAIM BY PIPER JAFFRAY ON A DUPLICATE PAYMENT OF $14K MISTAKENLY PAID TO THE CUSTOMER'S ACCOUNT. THIS WAS A CLERICAL ERROR IN WHICH PIPER JAFFRAY REQUESTED THAT THE CUSTOMER RETURN THE MONEY THAT WAS NOT HIS BUT HAD BEEN MISTAKENLY PAID TO HIM. MR. SIER BELIEVES THAT THIS "COMPLAINT" IS NOTHING MORE THAN A CYNICAL ATTEMPT TO MANIPULATE THE LEGAL SYSTEM TO ALLOW THE CUSTOMER TO GET A WINDFALL.

CLIENT ALLEGES MISREPRESENTATION ON SALES CHARGE ASSOCIATED WITH PURCHASE OF 8,419.365 SHARES OF AMECX ON 11/23/99. SEEKS RETURN OF FULL COMMISSION IN THE AMOUNT OF $5,523.90.

$5,300.00

COMPLAINT IS COMPLETELY UNFOUNDED. COMPLAINT INVOLVES THE SALE OF A MUTUAL FUND AND ALLEGES MISREPRESENTATION OF THE SALES CHARGE. CLIENT WAS GIVEN ALL INFORMATION INCLUDING A PROSPECTUS ON THE INITIAL CONSULTATION AND ALL FEES, INCLUDING BREAK POINTS, WERE FULLY DISCLOSED. CLIENT PURCHASED $145,739 OF AMERICAN FUNDS INCOME FUND OF AMERICA ON 11/23/99 AND MADE NO ADDITIONAL CONTRIBUTIONS TO THE ACCOUNT. THE CLIENT CLOSED THE ACCOUNT ON 5/22/01 WITH AMERICAN FUNDS INCOME FUND OF AMERICA ACCOUNT VALUE OF $165,914.67 A NET GAIN OF $20,175.67. A RETURN OF 13.84% OVER 1.5 YEARS. AN ANNUALIZED RETURN OF 8.675%.