NATIONAL FUTURES ASSOCIATION

NFA NEWS RELEASE, DATED APRIL 1, 2003: ON JANUARY 18, 2002, NFA'S BUSINESS CONDUCT COMMITTEE ("BCC") ISSUED A COMPLAINT TO PHILIP M. VERDE. THE COMPLAINT ALLEGES THAT VERDE AND OTHERS MADE COMMUNICATION WITH THE PUBLIC WHICH OPERATES AS A FRAUD OR DECEIT, IN VIOLATION OF NFA COMPLIANCE RULES 2-2(A) AND 2-29(A)(1).

Decision

Monetary/Fine

$7,500.00

ON MARCH 27, 2003, THE PANEL ISSUED AN AMENDED DECISION ACCEPTING PHILIP M. VERDE SETTLEMENT OFFER IN WHICH HE NEITHER ADMITTED NOR DENIED THE ALLEGATIONS OF THE COMPLAINT. THE PANEL ORDERED THE FOLLOWING: VERDE WILL PAY A $7,500 FINE, IF AND WHEN HE IS GRANTED NFA MEMBERSHIP, ASSOCIATE MEMBERSHIP OR PRINCIPAL STATUS. IF VERDE BECOMES AN NFA MEMBER OR ASSOCIATE OR PRINCIPAL OF AN NFA MEMBER AT ANY TIME IN THE FUTURE, HE WILL EXECUTE A WRITTEN CONSENT ALLOWING NFA, FOR TWO YEARS FROM THE DATE ON WHICH THE CONSENT IS SIGNED, TO TAPE RECORD HIS SALES SOLICITATIONS TO NFA STAFF, PURSUANT TO NFA'S ENHANCED SURVEILLANCE PROGRAM.

IN JANUARY 2002 A REGULATORY ACTION WAS SUBMITTED BY THE BCC OF NFA ALLEGING MISLEADING SALES SOLICITATIONS. ALTHOUGH I FOUND THE STATEMENTS TO BE ACCURATE, I REACHED A SETTLEMENT WITH THE NFA IN MAR 2003 WITH THE ABOVE STATED RESOLUTION. SINCE 2001 I HAVE WORKED IN THE BANKING INDUSTRY FOR WACHOVIA BANK AND AM NOW CURRENTLY EMPLOYED WITH SUNTRUST BANK.