CLIENT ALLEGED THAT A PURCHASE WAS MADE WTHOUT RECEIVING PROPER AUTHORITY. DAMAGES WERE BELIEVED TO EXCEED $5,000. (05/13/2008)

$10,000.00

$10,000.00

FIRM MADE A BUSINESS DECISION TO SETTLE WITH CLIENT FOR $10000.00.

NJ RESIDENT CLAIMS THAT HE TOLD FA TO SELL QACGX WHEN THE FUND WAS VALUED AT $12000.00. HE SAID FA FORGOT TO SELL IT. IT WAS SOLD ON 12/15/08 FOR $8878, A LOSS OF $3122. CLIENT BELIEVES HE IS ENTITLED TO FULL $18200 PURCHASE PRICE.

$18,200.00

CLAIM DENIED. FA DENIED THAT CLIENT EVER GAVE HIM AN ORDER TO SELL.

THIS COMPLAINT AROSE OUT OF THE SALE OF AN AUCTION RATE SECURITY (ARS) THAT WAS MADE PRIOR TO THE WIDESPREAD ILLIQUIDITY IN THE ARS MARKET THAT OCCURED IN FEBRUARY 2008.

$25,000.00

$25,000.00

THIS MATTER INVOLVES THE SALE OF AUCTION RATE SECURITIES (ARS). THE TRANSACTION(S) AT ISSUE TOOK PLACE BEFORE MID-FEBRUARY 2008, WHEN THE ARS MARKET SUFFERED WIDESPREAD AUCTION FAILURES AND ILLIQUIDITY. THE FINANCIAL ADVISOR DID NOT CAUSE, CONTRIBUTE OR HAVE ANY CONTROL WHATSOEVER OVER THESE MARKET EVENTS. THE FIRM REACHED AGREEMENT WITH CERTAIN OF ITS REGULATORS, PURSUANT TO WHICH IT REPURCHASED ARS FOR THEIR FULL PAR VALUE FROM CERTAIN CLIENTS, INCLUDING THE INSTANT CLIENT, WHETHER THEY COMPLAINED OR NOT. THE FINANCIAL ADVISOR WAS NOT A PARTY TO THAT AGREEMENT, DID NOT MAKE ANY PAYMENTS TO THE CLIENT, AND WAS NOT ASKED TO AND DID NOT CONTRIBUTE TO THE REPURCHASE AMOUNT. THE SETTLEMENT AMOUNT IN ITEM 11 ABOVE REFLECTS THE PAR VALUE OF THE REPURCHASED ARS, AS REQUIRED BY FINRA REGULATORY NOTICE 09-12.