CLIENT STATES SHE INSTRUCTED IR TO SELL 500 SHARES OF DEAN WITTER ON TWO DIFFERENT OCCASIONS, BUT THAT IR INSTEAD TRADED 1,500 SHARES BOTH TIMES. POTENTIAL LOSSES EXCEED $5,000.

$5,000.00

IR HAS INDICATED HE FIRST MET WITH THE CLIENT ON FEBRUARY 11, 2002, IN THE CLIENT'S ATTORNEY'S OFFICE TO REVIEW THE ACCOUNTS. UPON REVIEW, IR INDICATED THE ACCOUNT WAS OVER-WEIGHTED IN MORGAN STANLEY DEAN WITTER, SEARS AND ALLSTATE. IR ALSO INDICATED THAT HE AND THE CLIENT DISCUSSED TRIMMING OFF 3000 SHARES OF MORGAN STANLEY DEAN WITTER OVER THE NEXT TWO YEARS. IT IS UNDERSTOOD THAT IR MET WITH THE CLIENT AT THE CLIENT'S HOME ON MARCH 23, 2002, AND ON JANUARY 27, 2003. IR REPRESENTED THAT ON EACH OCCASION, CLIENT AGREED TO SELL 1500 SHARES OF THE STOCK. AT THE TIME OF THE SALES, THE CLIENT WOULD HAVE RECEIVED CONFIRMATION OF THE TRANSACTIONS. ADDITIONALLY, SUBSEQUENT TO THE TRANSACTIONS, CLIENT WOULD HAVE RECEIVED STATEMENTS REFLECTING THE ACTIVITY. BASED ON OUR INVESTIGATION, WE HAVE NO REASON TO BELIEVE THE IR DID NOT RECEIVE AUTHORIZATION TO PLACE THE TRADES IN QUESTION. CLAIM DENIED.