CUSTOMERS ALLEGE THAT SURRENDER CHARGES ASSESSED ON THEIR THREE CONTRACTS WERE DUE TO BROKER'S ERROR. FIRM INVESTIGATION REVEALED RR WAS NOT RESPONSIBLE AND THAT LATE DELIVERY OF REQUIRED DOCUMENTS WAS AS A RESULT OF CUSTOMERS UNTIMELY RESPONSE TO NOTICES SENT BY THE INSURANCE COMPANY AND THE CONTRA FIRM'S DELIVERY OF DOCUMENTS TO RRS OFFICE. DOCUMENTS SHOULD HAVE BEEN SENT DIRECTLY TO INSURANCE CARRIER.

$56,286.74

$25,750.00

11/15/2012-ERROR ON REP CONTRIBUTION AMOUNT. 9/13/2012 - CUSTOMERS ENGAGED ATTORNEY TO REPRESENT THEM IN COMPLAINT HOWEVER NO CIVIL ACTION OR ARBITRATION WAS FILED. FIRM SETTLED COMPLAINT THROUGH A SETTLEMENT AND FINAL RELEASE AGREEMENT DATED 9/13/2012. CUSTOMER ALLEGES THAT DUE TO BROKER ERROR ING RENEWED THEIR THREE CONTRACTS AND SUBSEQUENTLY ASSESSED MVA AND SURRENDER CHARGES AS A RESULT OF AN OUTGOING TRANSFER OF ASSETS. CONTRACTS WERE SCHEDULED TO MATURE ON FEBRUARY 12, 2011; REQUIRED DOCUMENTS TO PREVENT RENEWAL SHOULD HAVE BEEN RECEIVED BY ING NO LATER THAN FEBRUARY 11, 2011. UPON ING'S RECEIPT OF THE TRANSFER OF ASSETS DOCUMENTS, WHICH ARRIVED ON FEBRUARY 23, 2011, ING SURRENDERED THE CONTRACTS AND ASSESSED A COMBINED TOTAL OF $56,286.74 IN MVA AND SURRENDER CHARGES. UPON REVIEW THE FIRM FINDS ING PROVIDED THE CUSTOMER WITH 30-DAYS ADVANCE NOTICE THROUGH A LETTER DATED JANUARY 11, 2011 HOWEVER CUSTOMERS DID NOT REACT TO THE INFORMATION UNTIL FEBRUARY 4, 2011; AT WHICH TIME THEY COMMUNICATED TO THE RR OF THEIR WISH TO RECHARACTERIZE THEIR ROTH IRAS. RR ASSISTED THE CUSTOMERS WITH THEIR RECHARACTERIZATIONS ON FEBRUARY 8 WHICH IS WHEN CUSTOMERS DELIVERED SIGNED RECHARACTERIZATIONS FORMS. HOWEVER THE CUSTOMER'S DECIDED TO TRANSFER THEIR FUNDS TO ANOTHER FIRM. THE FIRM WAS ABLE TO CONFIRM THAT ON OR AROUND FEBRUARY 16, 2011 TRANSFER OF ASSETS PAPERWORK WAS DELIVERED TO RRS BRANCH OFFICE BY REPRESENTATIVES OF THE CONTRA FIRM. WE ARE UNCERTAIN AS TO WHY THE PAPERWORK WAS DELIVERED TO THE MONEY CONCEPTS RR. THE CONTRA FIRM'S REPRESENTATIVE SHOULD HAVE MAILED THE PAPERWORK DIRECTLY TO ING SINCE THEY WERE DELIVERING THE ASSETS TO THE CONTRA FIRM. IN ADDITION, BY THIS DATE IT WAS ALREADY PAST INGS DEADLINE OF FEBRUARY 11. UPON DISCOVERY OF THE DOCUMENTS THE RRS ASSISTANT IMMEDIATELY SENT TO ING VIA OVERNIGHT MAIL. ING STATED THEY HAVE A NON-CONTRACTUAL 10-DAY GRACE PERIOD FOR LATE DELIVERIES HOWEVER THE DOCUMENTS RECEIVED WERE PASSED THIS PERIOD. THE FIRM ATTEMPTED TO ASSIST THE CUSTOMER BY REQUESTING AN EXCEPTION OR WAIVER FROM ING HOWEVER THEY DENIED THIS REQUEST AND INSTEAD OFFERED THE REINSTATEMENT OF A 5-YEAR CONTRACT PAYING 3%. TERMS THE CUSTOMERS DID NOT ACCEPT. THE FIRM FEELS THIS WAS AN ERROR ON THE CONTRA BROKER'S PART WHO FAILED TO DELIVER PAPERWORK DIRECTLY TO ING.

COSTOMER ALLEGES MISREPRESENTATION, OMISSIONS, BREACH OF FIDUCIARY DUTY, VIOLATION OF THE OHIO SECURITIES ACT, FINRA CONDUCT RULES, NEGLIGENCE, FAILURE TO SUPERVISE, BREACH OF CONTRACT AND FRAUDLANT MISREPRESENTATION.

$25,000.00

$14,900.00

SETTLED WITH NO ADMISSION TO WRONGDOING, DISMISSED WITH PREJUDICE.