CLIENTS STATE IR PERFORMED POORLY AND CLIENTS CANNOT CONTINUE TO ACCEPT SUCH PERFORMANCE IN THEIR ACCOUNT. CLIENTS STATE SECURITIES ARE DOWN IN VALUE AND THEY WANT TO SELL WHEN THEY CAN BREAK EVEN. CLIENTS ADDITIONALLY WANT THE SECURITIES SOLD WITH NO COMMISSION DUE TO LACK OF PERFORMANCE. LOSSES EXCEED $5,000.

$5,000.00

THE INVESTMENTS THAT WERE AND ARE CURRENTLY HELD IN THE ACCOUNT APPEAR TO BE WITHIN THE SCOPE OF CLIENTS' INVESTMENT OBJECTIVES AS LISTED ON THE ACCOUNT. FROM THE TIME OF THE PURCHASES, CLIENTS WOULD HAVE BEEN SENT ACCOUNT STATEMENTS REFLECTING THE VALUE OF THE PORTFOLIO. IT DOES APPEAR THE DECLINE IN THE PORTFOLIO CAN BE ATTRIBUTED TO MARKET FLUCTUATION. THE FIRM DOES RECOMMEND BUYING QUALITY INVESTMENTS AND HOLDING THEM FOR THE LONG TERM. BASED ON OUR INVESTIGATION, WE HAVE NO REASON TO BELIEVE THE ACCOUNT WAS HANDLED INAPPROPRIATELY BY THE IR; THEREFORE, WE HAVE DENIED CLIENTS' REQUEST TO PLACE SELLS WITHOUT COMMISSION. CLAIM DENIED.

THE CLIENT ALLEGED THAT THERE WAS AN UNAUTHORIZED SALE OF MUTUAL FUNDS AT AXP SECURITIES AND THE TRANSFER OF THE FUNDS TO AN EDWARD JONES ACCOUNT. THIS TRANSACTION OCCURRED ON 2/15/01. THE FUNDS WERE SUBSEQUENTALLY USED TO PURCHASE AN ANNUITY. ONCE AGAIN, THE CLIENT ALLEGED THAT THIS ANNUITY PURCHASE WAS UNAUTHORIZED. THE CLIENT STATED THAT BOTH OF THESE TRANSACTIONS WERE UNAUTHORIZED AND THAT HE WAS NOT APPRISED OF THE TAX CONSEQUENCES ASSOCIATED WITH THIS TRANSACTION. AS A RESULT HE INDICATED THAT HE HAS REALIZED SUBSTANTIAL CAPITAL GAINS.

$5,000.00

POWERS STATED THE THE CLIENT'S INVESTMENT ADVISOR WITH ANOTHER BROKER DEALER PASSED AWAY, AND MR. POWERS SUGGESTED CONSOLIDATING THE FUNDS WITH EDWARD JONES. THE CLIENT SIGNED THE NECESSARY TRANSFER DOCUMENTS TO LIQUIDATE AND TRANSFER THE FUNDS TO EDWARD JONES. IN FACT THE CLIENT SIGNED SEVERAL DOCUMENTS TO CHANGE THE BROKER DEALERS ON FUNDS TO HAVE EDWARD JONES AS HIS BROKER. MR. POWERS INDICATED THAT HE DISCUSSED THE BENEFITS OF THE ANNUITY WITH THE CLIENT AND THE TRADE WAS AUTHORIZED IN JUNE, 2001. THE CLAIM WAS DENIED.

THE CUSTOMERS CLAIM IR EMPLOYED BY EDWARD JONES ENTERED AN UNAUTHORIZED ORDER TO SELL 2,000 SHARES OF A STOCK IN THE HUSBANDS IRA ACCOUNT. THEY SENT A LETTER TO THE IR INSTRUCTING HIM THAT NO FURTHER ORDERS ARE TO BE ENTERED IN THEIR ACCOUNT WITHOUT THEIR WRITTEN PERMISSION. THEY DID NOT REQUEST REINSTATEMENT OF THE POSITION, BUT THE STOCK WAS UP $10 PER SHARE SINCE THE SALE WHEN THE CUSTOMERS LETTER WAS RECEIVED. NO SPECIFIC REQUEST WAS MADE, BUT THE AMOUNT IN QUESTION COULD EXCEED $5,000.00.

$5,000.00

COMPLAINT DENIED.