1/01-1/03; CLIENT ALLEGES STOCKS WERE SOLD IN HER ACCOUNT AND PLACED IN HARTFORD FUND (2001, 2003) WITHOUT HER AUTHORIZATION. CLIENT CLAIMS THAT FA ADVISED HER TO SELL XCEL AT WHEN IT WAS .45 PER SHARE AND IT IS NOW TRADING AT $18.12 (AS OF 1/21/09). CLIENT STATES, WHEN SHE TRANSFERRED HER ACCOUNT TO ANOTHER FA, SHE BECAME AWARE OF A LOAN BALANCE OF $130,000.00. CLIENT STATES SHE BELIEVED SHE HAD ENOUGH MONEY TO LAST HER LIFETIME, BUT WITH RECENT MARKET CONDITIONS, SHE DOESN'T HAVE THAT MUCH. CLIENT DOES NOT MAKE A SPECIFIC CLAIM - NO FILING REQUIRED.

$5,000.00

$5,799.78

GIVEN 3/31/09 SETTLEMENT AMOUNT WILL ARE NOW PROCEEDING WITH FILING. IN REGARD TO THE LOAN BALANCE INVOLVING THE CLIENT'S HOME, OUR RECORDS REFLECT THE LOAN WAS INITIATED ON AUGUST 23, 2001 WITH THE TRANSFER OF $158,721.00 TO MONEY MARKET. FUNDS IN THE AMOUNT OF $160,632.47 WERE WIRED FROM THE ACCOUNT ON AUGUST 29, 2001. A DEPOSIT OF $211,892.58 WAS MADE IN THE ACCOUNT ON SEPTEMBER 27, 2001. A PORTION OF THE FUNDS WERE UTILIZED TO CLOSE THE LOAN. DURING THE COURSE OF THE NEXT SEVERAL YEARS, CHECKS WERE WRITTEN AGAINST THE MONEY MARKET ACCOUNT. THERE WERE MANY OCCASIONS ON WHICH FUNDS WERE NOT AVAILABLE TO COVER THE CHECKS WHEN PRESENTED FOR PAYMENT; THEREFORE, AUTOMATIC OVERDRAFT PROTECTION WAS UTILIZED TO PAY THE CHECKS. WHEN AUTOMATIC OVERDRAFT PROTECTION WAS UTILIZED TO PAY THE CHECKS, THE LOAN BALANCE IN THE ACCOUNT INCREASED. IT IS A CLIENT'S RESPONSIBILITY TO BE AWARE OF THE MONEY MARKET BALANCE IN THEIR ACCOUNT(S) AND TO ENSURE SUFFICIENT FUNDS ARE AVAILABLE WHEN WRITING CHECKS. AT THE TIME OF THE TRANSACTIONS (BUYS/SELLS) EFFECTED IN THE ACCOUNT, THE CLIENT WOULD HAVE RECEIVED CONFIRMATIONS DETAILING THE TRANSACTIONS. IN ADDITION, SINCE THE ACCOUNT WAS ESTABLISHED, THE CLIENT HAS RECEIVED STATEMENTS PROVIDING INFORMATION REGARDING THE INVESTMENTS HELD IN THE ACCOUNT AS WELL AS REFLECTING ALL ACCOUNT ACTIVITY. ALL MARGIN/LOAN ACTIVITY AND INTEREST CHARGES HAVE ALSO BEEN REFLECTED ON ACCOUNT STATEMENTS. BASED ON OUR REVIEW, IT IS OUR OPINION; ALL TRANSACTIONS WERE COMPLETED WITH THE CLIENT'S KNOWLEDGE AND AUTHORIZATION. HOWEVER, WE ARE EXTENDING AN OFFER TO THE CLIENT IN THE AMOUNT OF $5,799.78 WHICH REPRESENTS THE INTEREST CHARGES ASSESSED TO THE ACCOUNT IN 2008. CLIENT HAS THIRTY DAYS IN WHICH TO RESPOND TO OUR OFFER. CLIENT HAS ACCEPTED OUR OFFER.