CLIENT ALLEGES MISREPRESENTATION IN THE SALE OF A 1997 VARIABLE LIFE INSURANCE POLICY. CLIENT ALLEGES SHE WAS SOLD ON THE CONCEPT THAT THIS POLICY WAS AN EXCELLENT INVESTMENT VEHICLE, AS WELL AS AN INSURANCE POLICY. DAMAGES ARE UNSPECIFIED.

BROKER/DEALER AXA ADVISORS HAS DENIED COMPLAINT FILED BY CUSTOMER

COUNSEL ALLEGES MISREPRESENTATION DURING THE SALE OF A 1997 ISSUE VARIABLE LIFE INSURANCE POLICY. COUNSEL FURTHER ALLEGES THE CLIENT WAS TOLD HER MONEY WOULD BE SAFE, COULD BE WITHDRAWN AT ANY TIME WITHOUT PENALTY AND WOULD INCREASE IN VALUE BY AT LEAST 12% A YEAR. COUNSEL REQUESTED A REFUND OF $33,180 PLUS $12,806 IN INTEREST.

$45,788.00

$20,616.84

I AM BEING ALLEGED OF THREE WRONGS: 1) HER MONEY IN A VARIABLE LIFE POLICY IS A SAFE INVESTMENT: IN THE CLIENT FILE IS AN INVESTMENT RISK QUESTIONAIRE THE CLIENT FILLED IN AFTER A DETAILED DISCUSSION OF THE INVESTMENT RISK INVOLVED IN INVESTING IN THE STOCK MARKET (IN SEPERATE ACCOUNTS) THROUGH A VARIABLE LIFE POLICY. I HAVE MET WITH THIS CLIENT DURING ANNUAL REVIEWS DISCUSSING THE INVESTMENT PERFORMANCE YEAR BY YEAR EXPLAINING THE RISK INVOLVED AND THE CHARACTER OF STOCK MARKET RELATED INVESTMENTS. 2) MONEY CAN BE WITHDRAWN WITHOUT PENALTY: THE CLIENT SIGNED THE ILLUSTRATION OF THE PRODUCT PROPOSAL ON WHICH I DISCUSSED A SURRENDER COST OVER THE FIRST 15 YEARS OF THE CONTRACT. I DID MENTION THAT THE CLIENT CAN REQUEST SMALL WITHDRAWALS WITHOUT BEING SUBJECT TO SURRENDER COST, BUT NOT THAT SHE CAN WITHDRAW ALL THE FUNDS WITHOUT ANY SURRENDER COST 3) ILLUSTRATED 12% GROSS RETURN. THIS IS ACCURATE, I DID ILLUSTRATE A 12% GROSS RETURN. THIS WAS AN ACCEPTED RATE OF RETURN TO ILLUSTRATE AND WAS SUGGESTED TO BE USED BY MY MANAGERS AND PEERS IN THE OFFICE. I EXPLAINED TO THE CLIENT WHAT THE PERFORMANCE HISTORY WAS OF THE STOCK MARKET AS A WHOLE AND THAT THE LONG TERM RETURN (OVER 40 TO 50 YEARS) WAS BETWEEN 10% AND 12%. THE INTENT OF THIS DISCUSSION WAS TO EDUCATE THE CLIENT ON LONG RANGE RESULTS BUT THAT FLUCTUATIONS OVER THE SHORT TERM NEEDED TO BE TOLERATED. THE CASE WAS RESOLVED THROUGH A COMPANY SETTLEMENT ON 05/19/2004. THE CASE IS CURRENTLY CLOSED AND SETTLED. NO INDIVIDUAL FUNDS WERE NECESSARY FOR THE SETTLEMENT.

CUSTOMER ALLEGED THAT SHE GAVE ME A CHECK IN THE AMOUNT OF $2,036.54 ON NOVEMBER 4, 1999 WITH THE INTENT THAT IT WE FORWARDED TO THE FIRM FOR DEPOSIT INTO HER ACCOUNT AND THAT I DID NOT DO SO UNTIL LATE JANUARY, 2000. SHE ALSO ALLEGED THAT HER NAME WAS SIGNED TO A DOCUMENT WITHOUT HER PERMISSION.

$2,036.54

THE EQUITABLE AGREED TO REVERSE THE CONTRIBUTION OF $2,036.54 MADE TO CUSTOMERS' VARIABLE ANNUITY ON JANUARY 27,2000 AND THEN PROCESS THE CONTRIBUTION AS OF NOVEMABER 4, 1999 AND THEN APPLY THE APPLICABLE INTEREST AND GROWTH TO THE ACCOUNT.