CLAIMANT VIA A REQUEST FOR MEDIATION ALLEGES THAT FINANCIAL ADVISOR MICHAEL MURPHY PURCHASED SPECULATIVE STOCKS AND FAILED TO PROPERLY PROTECT THE DOWNSIDE RISK OF THIS INVESTMENTS. TIME PERIOD 2001-PRESENT. DAMAGES UNSPECIFIED.

CLAIMANT ALLEGES UNSUITABILITY, BREACH OF FIDUCIARY DUTY, FRAUD IN CONNECTION WITH HEDGE FUNDS PURCHASED IN HER UBS PW ACCOUNT.

$450,000.00

$49,000.00

MY FIRM ELECTED TO SETTLE THIS CASE IN ORDER TO AVOID THE COST AND RISK OF LITIGATION. I WAS NOT ASKED TO CONTRIBUTE TO THE SETTLEMENT. FURTHER, I DENY ANY WRONG DOING IN RESPECT TO THE HANDLING OF THE ACCOUNT

CLIENT ALLEGES, THROUGH COUNSEL, THAT FA ENGAGED IN UNAUTHORIZED AND UNSUITABLE TRADING IN THE ACCOUNT. TIME PERIOD: 10/97-10/01

$185,000.00

I DENY THESE ALLEGATIONS IN ITS ENTIRETY. THEY ARE BASELESS & UNTRUE. UBS PAINEWEBBER DENIED THE ALLEGATIONS ON 7/15/02 BASED ON ITS FINDING THAT CLIENT AUTHORIZED ALL TRADES IN THE ACCOUNT. ADDITIONALLY, THE FIRM'S REVIEW REVEALED THAT CLIENT'S INVESTMENTS WERE CONSISTENT WITH HIS STATED OBJECTIVE AND RISK PROFILE, AND THAT THE MAJORITY OF THE TRADES IN THE ACCOUNT WERE UNSOLICITED".