Client alleges recommendation to exchange annuity was inappropriate.

$20,893.00

The Pacific Life Annuity contract showed a higher income base based on annuitization, while the Prudential contract offered her a more favorable income option without annuitization. The Pacific Life contract requires client to annuitize her contract thus giving up control of her assets with all her payout options while the Prudential Contract does not force her to annuitize. Client wanted the option to take the monthly lifetime income from Prudential without having to annuitize or take the entire balance out at the end of the Prudential surrender period.

CLAIMANT ALLEGES UNSUITABLE INVESTMENT RECOMMENDATIONS WERE MADE IN MID 2008. CLAIMANT REQUESTS DAMAGES IN AN AMOUNT ACCORDING TO PROOF (UNSPECIFIED) BUT IN NO EVENT GREATER THAN $55,000.00

FA WAS DISMISSED ON 10/22/2012

CUSTOMERS ALLEGE IN MAY 2008 REP MISLEAD, WAS UNTRUTHFUL AND, REFERRED TO INVESTMENTS AS CD AND THAT IT WOULD EARN 10% OVER 3 MONTHS. ASKING FOR COMPENSATION OF $15,512.65.

$15,512.65

THE MORNING OF MAY 26TH OR 27TH 2008 A FORMER LICENSED BANKER INTRODUCED ME TO [CUSTOMER] AND [CUSTOMER]. THEY WANTED HIGHER INTEREST RATES AS THE BANK CD RATE WAS TOO LOW. [CUSTOMER] EXPLAINED HIS BACKGROUND IN ANNUITIES AND STOCKS THAT HIS CPA IS HIS BROKER BUT [CUSTOMER] DIRECTED THE CPA ON WHAT TO DO PURCHASE IN HIS PORTFOLIO. I SHOWED THEM AN FDIC MARKET LINK CD BUT WAS NOT INTERESTED. THEY LIKED THE HIGHER COUPON OF THE UNINSURED REVERSE CONVERTIBLE BASED ON HIS STOCK BACKGROUND. I GAVE THEM BOTH WELLS FARGO BROCHURES ON THE MLCD & REVERSE CONVERTIBLE. LATE WEDNESDAY WE SPOKE ON THE WORST OF ETF REVERSE CONVERT NEW ISSUE. WE AGAIN WENT OVER THE DOWNSIDE PROTECTION LEVEL AS EACH BOND IS UNIQUE AND THE MOST IMPORTANT ASPECT OF RISK. WE ALSO SPOKE AGAIN OF PLAN "B" STRATEGY THAT BEING IF THE BOND IS KNOCKED IN WE HOLD THE INDEX UNTIL IT BREAKS EVEN OR BETTER. DURING THE NEXT 3 MONTHS [CUSTOMER] & I SPOKE AND GAVE HER UPDATES ON MARKET VALUES OF (SPY/EEM/QQQQ). I EXPLAINED HOW TO TRACK THE ETF'S ONLINE USING YAHOO FINANCE OR MSN MONEY FOR DAILY UPDATES. UNKNOWN TO ME THE [CUSTOMER'S]HAD THEIR PMA LINKED TO THE BROKERAGE AND WELLS CONFIRMED THE ACCOUNT WAS LISTED FROM THE BEGINNING. [CUSTOMER] TOLD THE BANKER SHE USES THOSE STATEMENTS RELIGIOUSLY TO BALANCE HER ACCOUNTS. SEPTEMBER 5TH [CUSTOMER] AND I SPEAK AND SHE TELLS ME THE PROBLEM WAS HER CPA JUST INFORMED HER SHE NEEDED TO PAY TAXES FOR THE 2007 YEAR. WE AGREE TO SPEAK ON MONDAY THE 8TH WHEN I KNOW THE EXACT CONVERSION ON THE SHARES AND SHE KNOWS HOW MUCH SHE NEEDS FOR TAXES. ON SEPT. 8TH DURING THE CONVERSATION [CUSTOMER] SUDDENLY SAID SHE "NEVER TOOK NOTES" DURING OUR CONVERSATIONS. THE SHOCKER WAS SHE NEEDED $19,000 FOR TAXES. WE ALSO BRAINSTORMED ABOUT OTHER FUNDS AVAILABLE TO PAY THE TAXES AND WAIT FOR EEM TO BREAK EVEN DUE TO THIS UNFORESEEN TAX SITUATION. THEY ADMITTED THAT DAY IF THEY WERE TO JUST HOLD EEM FOR 1-2 YEARS OR LESS IT COULD BE EVEN OR HIGHER THEREFORE NOT TAKING A TRUE "LOSS".