PENNSYLVANIA RESIDENT CLAIMED THAT IN AUGUST 2000 HE ROLLED OVER HIS 401K LUMP SUM PENSION DISTRIBUTION TO FIRST UNION. THE CLIENT FURTHER CLAIMED THAT HE TOLD THE FA THAT HE COULD ONLY AFFORD TO LOSE APPROXIMATELY 20% OF HIS PRINCIPAL SINCE HE PLANNED TO RETIRE AT 56 TO TAKE CARE OF HIS HANDICAPPED SON. THE CLIENT CLAIMED THAT IN AUGUST 2000 HE INVESTED APPROXIMATELY $230,000 IN VARIOUS MUTUAL FUNDS AND UITS FOR HIS ACCOUNT BASED UPON THE ADVICE OF THE FA. FINALLY, THE CLIENT CLAIMED THAT WITHIN 20 MONTHS HIS INVESTMENT IN THE MUTUAL FUNDS AND UITS HAD DECLINED SUBSTANTIALLY IN VALUE. NO SPECIFIC AMOUNT OF DAMAGES WERE CLAIMED BUT THE CLIENT INDICATED THAT UNREALIZED LOSSES AS OF APRIL 2002, WHEN THE CLIENT TRANSFERRED HIS ACCOUNT FROM THE FIRM, APPEARED TO BE APPROXIMATELY $75,000.

$75,000.00

A LETTER WAS SENT TO THE CLIENT ON JANUARY 28, 2004 DENYING THE COMPLAINT. A REVIEW OF THE CLIENT'S ACCOUNT INDICATED THAT THE INVESTMENTS THAT WERE RECOMMENDED BY THE FA WERE CONSISTENT WITH THE CLIENT'S INVESTMENT OBJECTIVES, RISK TOLERANCE AND INVESTMENT TIME HORIZON. FURTHER, THE FA WAS NEVER INFORMED THAT THE CLIENT INTENDED TO RETIRE WHEN HE WAS 56 YEARS OLD TO CARE FOR HIS SON. ANY DECLINES IN THE VALUE OF THE CLIENT'S PORTFOLIO WERE THE RESULT OF MARKET FLUCTUATIONS THAT WERE BEYOND THE CONTROL OF THE FA AND THE FIRM. THE CLIENT TRANSFERRED HIS ACCOUNT(S) FROM THE FIRM IN MAY 2002.

WRONGFUL SELLING OF TEXTBOOKS

MISDEMEANOR, PETIT THEFT, TOTAL FINE OF $71.40

I WAS ADVISED BY THE OFFICER TO PLEAD GUILTY TO THE CHARGE. 3 TEXTBOOKS WERE GIVEN TO ME TO SELL FOR A FRIEND. THIS IS NORMAL PROCEDURE AT THE END OF A COLLEGE SEMESTER. SINCE I WAS NOT REGISTERD FOR THE COURSES OF THESE TEXTBOOKS I WAS CHARGED WITH PETIT THEFT AND FINED A TOTAL OF $71.40