THE CLIENT STATES MR. QUINN RECOMMENDED THEY TRANSFER THEIR ASSETS HELD AT OTHER FIRMS INTO EDJ. THE CLIENT STATES MR. QUINN ADVISED THEM THEY WOULD NOT OWE TAXES ON THEIR FUNDS BECAUSE HE WOULD TRANSFER THEM OVER TO HARTFORD FUNDS. THE CLIENTS PURCHASED $240,000 OF HARTFORD FUNDS ON 4/20/99. THE CLIENTS STATE THEY INCURRED A TAX LIABILITY IN EXCESS OF $50,000.

$50,000.00

THE CUSTOMER WAS ADVISED THAT MR. QUINN INDICATED THE CUSTOMERS OPENED AN ACCOUNT WITH A TRANSFER ON DEATH FEATURE WITH OUR FIRM AND WANTED TO TRANSFER THEIR INVESTMENTS INTO THE ACCOUNT FOR ESTATE PLANNING PURPOSES. THE CUSTOMER OWNED A MUTUAL FUND THAT COULD NOT BE TRANSFERRED INTO THE ACCOUNT. MR. QUINN CLAIMS HE ADVISED THE CUSTOMERS SELLING THE FUND COULD RESULT IN CAPITAL GAINS TAXES AND RECOMMENDED THEY CONSULT WITH BOTH THE MUTUAL FUND COMPANY AND AN ACCOUNTANT BEFORE THEY SOLD. MR. QUINN ALSO CLAIMS WHEN THE CUSTOMER DECIDED TO PROCEEED WITH THE LIQUIDATION OF THE MUTUAL FUND AND WAS SIGNING THE LIQUIDATION AUTHORIZATION LETTER HE AGAIN REMINDED THEM THAT ADDITIONAL TAXES COULD BE INCURRED. OUR POSITION IS MR. QUINN HAD ADVISED THE CUSTOMER OF THE POTENTIAL FOR CAPITAL GAINS TAXES AND FOLLOWED THEIR INSTRUCTIONS ON THE TRADES. THE CUSTOMER'S COMPLAINT WAS DENIED.