CUSTOMER ALLEGES HER "OBJECTIVE FOR INVESTING HAS ALWAYS BEEN A CONSERVATIVE ONE" AND THAT HER "CONSERVATIVE" INVESTMENT OBJECTIVE AND "NET WORTH WOULD NOT JUSTIFY A POSITION OF AN AGGRESSIVE INVESTOR.'"

$20,000.00

THE INVESTMENT OBJECTIVES ON THE CLIENT'S ACCOUNT DOCUMENTS ARE CLEARLY MARKED. ALL RECOMMENDATIONS MADE WERE CONSISTENT WITH HER OBJECTIVES. THERE IS NO MERIT TO THIS COMPLAINT.

CUSTOMER ALLEGES BROKER MADE UNSUITABLE BOND RECOMMENDATIONS. LOSSES CLAIMED $58,500.00.

$58,500.00

THE CLIENT HAS PURCHASED HIGH YIELD BONDS AND HIGH YIELD FUNDS DURING OUR ENTIRE BUSINESS RELATION.HER PRIORITY WAS TO GET THE MOST INCOME POSSIBLE AND TRADE STOCKS FOR CAPITAL GAIN. SHE HAS A FULL UNDERSTANDING OF HIGH YIELD BONDS. THIS CLIENT OPENNED AN OPTIONS ACCT A FEW YEARS AGO AND TRADED CONTRACTS. HER KNOWLEDGE AND UNDERSTANDING OF INVESTMENTS ARE NOT TO BE UNDER ESTIMATED. SHE HAS BEEN INVESTING FOR MANY YEARS USING VARIOUS INVESTMENT STRATEGIES. WITH EVERY TRADE SHE HAD TOTAL AND COMPLETE CONTROL. CLAIM DENIED. SENT LETTER TO CUSTOMER ON JULY 26, 1999. CUSTOMER HAS CALLED THE BROKER AND BASICALLY APOLOGIZED.

CUSTOMER ALLEGED UNAUTHORIZED TRADING UNSUITABLE TRANSACTIONS AND CHURNING OF ACCOUNT. ESTIMATED LOSS OF $70,000.00.

$70,000.00

$45,000.00

BRADFORD & SMYLIE HAVE CONSISTENTLY DENIED ANY WRONGDOING IN THE HANDLING OF THIS ACCOUNT. THE CUSTOMER ONLY COMPLAINED WHEN HIS ACCOUNT WAS DOWN IN RESPONSE TO MARKET CONDITIONS. HOWEVER, IN VIEW OF THE AMOUNT OF TIME MR. SMYLIE AND HIS BRANCH MANAGER WERE HAVING TO INVEST IN THE DEFENSE OF THIS CLAIM, AS WELL AS CONSIDERATION OF THE EXPENSES AND UNCERTAINTY OF ARBITRATION, THE FIRM AND MR. SMYLIE DECIDED TO SETTLE THE CLAIM, BUT WITHOUT ANY ADMISSION OF LIABILITY OR WRONGDOING, WHICH IS STILL DENIED.