Claimants allege fraudulent misrepresentation, fraudulent concealment, negligence, breach of fiduciary duty, and breach of contract. The timeframe of the alleged activity involved is unspecified.

$14,995.00

The allegations are completely false. The client and her son were made completely aware of the advantages and disadvantages of all investments in multiple documented meetings. Client signed disclosure documents stating she understood the features of the investments. The client made money on all of her investments.

CHURNING AND UNSUITABLE PURCHASE OF VARIABLE ANNUITY; SURRENDER CHARGES

$297,666.00

CUSTOMERS PURCHASED NUMEROUS ANNUITIES OVER THE LAST DECADE AND EACH SIGNED AT LEAST FIVE DISCLOSURE DOCUMENTS ACKNOWLEDGING RISKS, REWARDS, PENALTIES AND SURRENDER FEES. WHILE THE CUSTOMERS CLAIMED CHURNING, SUCH ACTIVITY IS IMPOSSIBLE IN AN ANNUITY BECAUSE NO COMMISSION IS GENERATED ON SUB-ACCOUNTS. REP PROVIDED SIGNIFICANT DOCUMENTATION REFUTING THE CUSTOMERS' CLAIMS AND EVIDENCING THE TRANSACTIONS, THEIR SUITABILITY AND THE DISCLOSURES MADE. EVEN THOUGH THE PRODUCTS WERE PERFORMING WELL AND EXACTLY AS SOLD, CUSTOMERS FILED AN ARBITRATION IN AN ATTEMPT TO FORCE A SETTLEMENT FROM THE BROKER-DEALER.

LPL FINANCIAL

Discharged

DISCHARGED FOR VIOLATING FIRM POLICIES AND PROCEDURES REGARDING OBTAINING CLIENT SIGNATURES ON ACCOUNT DOCUMENTATION IN THAT ADVISER USED COPIED CUSTOMER SIGNATURES ON ORIGINAL DOCUMENTATION.

LPL FIRST REFUSED TO PROVIDE A SPECIFIC REASON FOR TERMINATING REP AND THEN HAS REPEATEDLY REFUSED TO PROVIDE PROOF SUBSTANTIATING THE ALLEGATION THAT IT FINALLY CAME UP WITH. REP IS WORKING THROUGH AN ATTORNEY TO HAVE LPL AMEND THE INFLAMATORY TERMINATION ALLEGATION LANGUAGE.

CUSTOMERS ALLEGE THAT ANNUITY SALE WAS MISREPRESENTED AND REQUET WAIVER OF SURRENDER PENALTIES.

$5,000.00

CUSTOMER COMPLAINS THAT HER REPRESENTATIVE CONDUCTED UNAUTHORIZED AND UNSUITABLE STOCK EQUITY TRADES IN ORDER TO GARNER COMMISSIONS OVER THREE MONTHS FROM NOVEMBER 2000 TO FEBRUARY 2001.

$46,758.00

REPRESENTATIVE STATES THAT ALL TRADES WERE DISCUSSED WITH THE CUSTOMER AND THAT SHE SIGNED DISCLOSURE DOCUMENTS INDICATING HER DESIRE FOR GROWTH INVESTMENTS, WHICH GROWTH OBJECTIVE SHE PURSUES TODAY.

CUSTOMERS ALLEGED THAT THEY PURCHASED A BROKERED CERTIFICATE OF DEPOSIT IN DECEMBER 1998, IN THE AMOUNT OF $75,000.00, AND THAT REPRESENTATIVE HAD NOT INFORMED HIM OF THE PENALTY IF HE CASHED THE CD IN PRIOR TO MATURITY. IN LATE NOVEMBER 1999, CUSTOMER HAD INQUIRED ABOUT CASHING IN HIS CD INVESTMENT, AT WHICH TIME REP REMINDED HIM OF DURATION OF INVESTMENT, AND THAT THE CALLABLE FEATURE DID NOT GUARANTEE THAT THE CD WOULD BE CALLED. AT THAT TIME, REPRESENTATIVE ADVISED CUSTOMER THAT HE WOULD BE ABLE TO SELL HIS CD ON THE MARKET AT THAT TIME FOR 85%. CUSTOMERS DECLINED TO SELL THIS INVESTMENT. IN RESPONSE TO CUSTOMERS' ALLEGATIONS, REP DENIED THAT HE MADE ANY MISREPRESENTATIONS CONCERNING THESE INVESTMENTS, AND MAINTAINED THAT HE PROVIDED ACCURATE AND COMPLETE INFORMATION TO THE CUSTOMERS CONCERNING THE MANNER IN WHICH CDS WORKED, INCLUDING THE CALLABLE FEATURES AND DURATIONS OF THE CD, BEFORE CUSTOMERS INVESTED. NO DAMAGES SOUGHT OR SPECIFIED, BUT BELIEVED TO BE OVER $5,000.00.

CUSTOMERS ALLEGED THAT THEY PURCHASED BROKERED CERTIFICATES OF DEPOSIT IN SEPTEMBER 1998, DECEMBER 1998, JANUARY 1999, AND FEBRUARY 1999 TOTALING $42,000.00, AND THAT REPRESENTATIVE HAD INFORMED THEM THAT THEY WOULD NOT LOSE ANY PRINCIPAL INVESTMENT AMOUNT UNLESS THEY CASHED IN THOSE CDS WITHIN THE FIRST YEAR OF INVESTMENT. CUSTOMER HAD INQUIRED ABOUT CASHING IN HIS $11,000.00 SEPTEMBER 1998 INVESTMENT, AT WHICH TIME REP REMINDED HIM OF DURATION OF INVESTMENT, AND THAT THE CALLABLE FEATURE DID NOT GUARANTEE THAT THE CD WOULD BE CALLED. AT THAT TIME, REPRESENTATIVE ADVISED CUSTOMER THAT HE WOULD BE ABLE TO SELL HIS CD ON THE MARKET AT THAT TIME FOR 88%, AND SEVERAL DAYS LATER, FOR 92%. CUSTOMER DECLINED TO SELL HIS INVESTMENTS. IN RESPONSE TO CUSTOMERS' ALLEGATIONS, REP DENIED THAT HE MADE ANY MISREPRESENTATIONS CONCERNING THESE INVESTMENTS, AND MAINTAINED THAT HE PROVIDED ACCURATE AND COMPLETE INFORMATION TO THE CUSTOMERS CONCERNING THE MANNER IN WHICH CDS WORKED, INCLUDING THE CALLABLE FEATURES AND DURATIONS OF THE CDS, BEFORE CUSTOMERS INVESTED. NO DAMAGES SOUGHT OR SPECIFIED, BUT BELIEVED TO BE UNDER $5,000.00