CLIENT STATES THAT BY JUNE 2008, HER ACCOUNT BEGAN LOSING TENS OF THOUSANDS OF DOLLARS EACH STATEMENT PERIOD. CLIENT INDICATES SHE EXPRESSED CONCERN TO THE FA AND HE REPEATEDLY REASSURED HER THAT ALL WAS WELL. BY YEAR-END CLIENT HAD LOST ALL CONFIDENCE AND WITHDREW HER REMAINING FUND FROM HER ACCOUNT. CLIENT STATES IT IS UNCLEAR IF FA DELIBERATELY IGNORED HER REQUESTS OR FAILED TO FOLLOW THROUGH ON THEM IN A TIMELY FASHION. FILING REQUIRED, LOSSES CLAIMED EXCEED $5,000.

$5,000.00

BASED ON OUR REVIEW, WE REGRET TO INFORM THE CLIENT THAT NO ADJUSTMENT WILL BE MADE TO HER ACCOUNT. IN CLIENT'S LETTER SHE INDICATED SHE CONTACTED FA IN JUNE 2008 AND HER CALLS WERE NOT RETURNED. HOWEVER, OUR RECORDS REFLECT CLIENT'S ACCOUNT WAS NOT TRANSFERRED TO FA'S BRANCH OFFICE UNTIL JULY 21, 2008. IT IS OUR UNDERSTANDING AT CLIENT INITIAL MEETING WITH FA, HER ACCOUNT AND GOALS WERE REVIEWED AND SHE WANTED TO CONTINUE RECEIVING MONTHLY PAYMENTS OF $1,800.00. FA HAS INDICATED HE INFORMED CLIENT THAT SHE HAD BEEN WITHDRAWING TOO MUCH MONEY FROM HER ACCOUNT AND HER ACCOUNT VALUE COULD NOT BE SUSTAINED WITH HER RATE OF WITHDRAWALS. OUR RECORDS REFLECT THE WITHDRAW ACTIVITY CONTINUED AFTER YOUR MEETING WITH MR. BUSCH, AS YOU CONTINUED TO WRITE CHECKS IN EXCESS OF THE $1,800.00 DIRECT PAYMENT. FURTHERMORE, IN THE LATTER PART OF 2008, WE EXPERIENCED TUMULTUOUS MARKET CONDITIONS, WHICH HAD A SIGNIFICANT IMPACT ON ACCOUNT VALUATIONS. THE CLIENT'S ACCOUNT VALUE SUFFERED IN PART DUE TO MARKET PERFORMANCE, BUT WAS ALSO IMPACTED BY THE WITHDRAWALS FROM HER ACCOUNT. OUR RECORDS REFLECT CLIENT SPOKE WITH FA IN OCT. AND DEC. 2008 ABOUT HER ACCOUNT. IN FEBRUARY 2009, OUR RECORDS REFLECT AT CLIENT'S DIRECTION, ALL INVESTMENTS (WITH THE EXCEPTION OF THE INDIVIDUAL BONDS) WERE LIQUIDATED AND THE NET PROCEEDS WERE MAILED TO HER. AN OVERALL REVIEW OF THE CLIENT'S ACCOUNT SINCE SHE RECEIVED THE INHERITANCE FROM HER MOTHER IN FEBRUARY 2003 (VALUED AT APPROXIMATELY $623,534.24), HAS REFLECTED EXCESSIVE WITHDRAWALS FROM THE ACCOUNT. OUR INTERNAL NOTES SHOW CLIENT WAS CAUTIONED ON SEVERAL OCCASIONS TO SPEND LESS, AS HER WITHDRAWALS WERE GREATLY IMPACTING THE VALUE OF HER ACCOUNT. FURTHER, OUR NOTES REFLECT CLIENT WAS ASKED TO SIGN AN EXCESSIVE WITHDRAWAL ACKNOWLEDGMENT LETTER IN JANUARY 2007; HOWEVER, SHE DECLINED TO SIGN THE FORM. IT APPEARS BASED ON THIS INFORMATION, CLIENT WAS PROVIDED WITH AMPLE INFORMATION FROM OUR FINANCIAL ADVISOR(S) ON HOW YOUR WITHDRAWALS WERE AFFECTING HER ACCOUNT VALUE. CLAIM DENIED.