CLIENT CLAIMS IR PROPOSED A DIVERSIFIED PLAN FOR HER IRA ROLLOVER OF $80,797.68. CLIENT STATES HER STATEMENT SHOWS A CURRENT VALUE OF $70,567.18. CLIENT INDICATES SHE HAS NOW LEARNED IR DID NOT INVEST THE MONEY IN THE DIVERSIFIED PLAN HE PROPOSED. CLIENT STATES IT WAS NOT UNTIL OCTOBER 2005 THAT THE IR EVEN CONTACTED HER TO POSSIBLY CHANGE HER INVESTMENTS. CLIENT INDICATES THE IR ONLY CALLED IN OCTOBER TO DISCUSS THE FREE SWITCH AND CLIENT STATES SHE INFORMED IR SHE WANTED THE LEAST RISKY AMERICAN FUND. CLIENT STATES SHE HAS NOW BEEN ADVISED THAT CAPITAL INCOME BUILDER IS NOT THE LEAST RISKY FUND OF THE AMERICAN FUNDS. CLIENT IS UNHAPPY WITH THE IR. LOSSES CLAIMED EXCEED $5,000.

$5,000.00

ACCORDING TO IR HE MADE AN INITIAL PROPOSAL TO CLIENT IN MAY 1999; HOWEVER, A REVISED PROPOSAL WAS DISCUSSED IN NOVEMBER 1999. WHEN IR RECEIVED THE ROLLOVER CHECK, IR CONTACTED THE CLINET TO CONFIRM THE FUNDS TO BE PURCHASED (BASED ON THE NOVEMBER MEETING) AND CLIENT AUTHORIZED THE TRANSACTIONS. IR INDICATED THE BRANCH CONTACTED THE CLIENT BY MAIL AND TELEPHONE DURING THE TIME CLIENT'S ACCOUNT WAS AT EJ: HOWEVER, CLIENT WAS UNRESPONSIVE TO MANY OF THE CONTACTS. IN REGARD TO CLIENT'S DISCUSSION WITH THE IR IN OCTOBER 2005 (RELATED TO THE FREE SWITCH), IR INDICATED FOUR AMERICAN FUNDS WERE DISCUSSED. IT IS OUR UNDERSTANDING CLIENT CONTACTED IR IN NOVEMBER 2005 AND INFORMED THE IR SHE WANTED TO SWITCH ALL VAN KAMPEN FUNDS INTO THE LEAST RISKY AMERICAN FUND DISCUSSED. IR STATED IT WAS HIS OPINION CAPITAL INCOME BUILDER WAS THE LEAST RISKY OF THE FUNDS DISCUSSED AND CLIENT AGREED TO MAKE THE SWITCH. IR INDICATED AT NO TIME DID CLIENT REQUEST HER MONEY BE MOVED TO CASH OR A MONEY MARKET FUND. BASED ON OUR REVIEW, WE WILL NOT BE MAKING AN ADJUSTMENT TO CLIENT'S ACCOUNT. CLAIM DENIED.