Client alleges fees were not disclosed. (6/20/2013-10/22/2014)

ARBITRATION CASE DESCRIPTION: ALLEGATIONS OF BREACH OF FIDUCIARY DUTY, NEGLIGENCE, EXCESSIVE MARGIN, VIOLATIONS OF NEBRASKA SECURITIES ACT, VIOLATION OF NASD RULES OF SUPERVISION AND SUITABILITY, MISREPRESENTATION, NEGLIGENT SUPERVISION AND BREACH OF CONTRACT IN RECOMMENDING INVESTMENTS FOR CLAIMANT'S REQUEST AND IN MARGIN. (AMOUNT CLAIMED: NOT SPECIFIED WITH ATTORNEYS' FEES, COSTS AND EXPERT FEES)

$24,907.48

AWARD AGAINST JONES (FIRM) AND ARKFELD JOINTLY AND SEVERALLY OF $24,907.48 AS COMPENSATORY DAMAGES PLUS $4,000 IN ATTORNEYS' FEES.

CLIENT SAID ARKFELD TOLD HIM THE ANNUITIES WOULD EARN NO LESS THAN 27% OVER A THREE YEAR PERIOD. THE CLIENT STATES A PROSPECTUS WAS NOT GIVEN ON ONE OF THE ANNUITIES UNTIL AFTER THE FACT AND WAS NOT TOLD OF THE 7% WITHDRAWAL PENALTY. CLIENT ALSO STATES ARKFELD TOLD HIM THERE WAS NO WAY TO CHANGE THE INVESTMENT STRATEGY IN ONE OF THE ANNUITIES.

$5,000.00

ACCORDING TO ARKFELD, HE PROVIDED A PROSPECTUS TO THE CLIENT PRIOR TO THE TRANSACTION AND ALSO DISCUSSED THE DETAILS OF THE ANNUITIES, INCLUDING WITHDRAWAL PENALTY. IN REGARDS TO THE PERFORMANCE OF THE ANNUITIES, ARKFELD EXPLAINED HOW THE STOCK MARKET MAY AVERAGE 9-10% PER YEAR. ARKFELD ALSO DISCUSSED MARKET FLUCTUATION AND THAT THE VALUE OF THE CLIENTS ACCOUNT COULD INCREASE AND DECREASE. ACCORDING TO ARKFELD, HE DID NOT STATE THE CLIENT COULD NOT CHANGE HIS INVESTMENT STRATEGY. ARKFELD ADVISED THE CLIENT HE COULD MAKE CHANGES TO THE ANNUITY, BUT ARKFELD BELIEVED THE CLIENT HAD A GOOD MIX OF INVESTMENTS. CLAIM DENIED.