06/2008-05/2009; THE CLIENT'S ATTORNEY STATES THE INVESTMENTS WERE NOT SUITABLE GIVEN THE CLIENT'S AGE; HE STATES A MAJORITY FUNDS SHOULD HAVE BEEN INVESTED IN INCOME PRODUCING FUNDS. HE STATES THE NEGLIGENT ADVICE CAUSED THE CLIENT'S ACCOUNT TO DECLINE MORE THAN IT SHOULD. HE WOULD LIKE REIMBURSEMENT OF THE LOSSES.

$5,000.00

THE FA INDICATED PRIOR TO INVESTING THE FUNDS, HE REVIEWED A PORTFOLIO OBJECTIVE OF BALANCED TOWARD GROWTH AND INCOME. IT IS OUR UNDERSTANDING HE REVIEWED THE COST, BENEFITS AND RISKS OF THE PROPOSED PORTFOLIO. ACCORDING TO THE FA, THE CLIENT AGREED TO THE PROPOSED PORTFOLIO. A COMBINATION OF MUTUAL FUNDS AND CORPORATE BONDS WERE PURCHASED TO HELP MEET THE CLIENT'S STATED ACCOUNT OBJECTIVES. THE CLIENT PURCHASED SEVERAL FUNDS FROM THE AMERICAN FUND FAMILY, RECEIVING A $100,000 BREAKPOINT. UPON REVIEW OF THE INVESTMENTS, THEY APPEAR TO BE WITHIN THE SCOPE OF THE INVESTMENT OBJECTIVES. WHILE WE UNDERSTAND THE CLIENT'S DISAPPOINTMENT WITH THE PERFORMANCE OF THE INVESTMENTS, THE PERFORMANCE IS ATTRIBUTED TO CIRCUMSTANCES BEYOND OUR CONTROL AND MARKET FLUCTUATION. IN LIGHT OF THESE CIRCUMSTANCES, THE REQUEST FOR REIMBURSEMENT IS RESPECTFULLY DENIED.