RECEIVED CORRESPONDENCE FROM THE CLIENT'S ATTORNEY ALLEGING THE CLIENT'S PORFOLIO WAS UNSUITABLE. THE CLIENT AND ATTORNEY ARE DEMANDING A SETTLEMENT OF $75,000.00. (09/12/2007 - 10/05/2009) ***ARBITRATION ALLEGATIONS: CLAIMANT, A MASSACHUSETTS RESIDENT, ALLEGES IN 2007 FA RECOMMENDED UNSUITABLE INVESTMENTS. CLAIMANT IS REQUESTING AN AWARD FOR DAMAGES TO BE DETERMINED, BUT BELIEVED TO BE OVER $5,000.

$25,000.00

DENIED CLAIM. **ARBITRATION SERVED. WITHOUT ADMITTING ANY LIABILITY, THE FIRM SETTLED THE MATTER FOR $25,000.00. THE FIRM AND I DENY ALL OF THE ALLEGATIONS IN THE LAWSUIT IN THE STRONGEST POSSIBLE TERMS.

FL CLIENTS STATE CONCERN THAT FA SOLD THEM WACHOVIA AND WELLS FARGO PREFERRED STOCKS IN FEBRUARY AND MAY OF 2007 FOR A TOTAL COST OF $145K WHICH HAVE SINCE LOST VALUE. NO LOSS STATED, ESTIMATED AT $17K.

$17,000.00

LETTER TO CLIENT EXPLAINING THAT WHILE WE REGRET IF YOU ARE NOT SATISFIED WITH THE PERFORMANCE OF YOUR INVESTMENTS, REVIEW OF YOUR ACCOUNTS AND THE SUPPORTING DOCUMENTATION SHOWS THAT YOUR INVESTMENT IN WB.B AND FWF WERE APPROPRIATE IN LIGHT OF YOUR STATED INVESTMENT OBJECTIVES AND RISK TOLERANCE. IT FURTHER APPEARS THAT THE TERMS AND FEATURES OF THESE INVESTMENTS, INCLUDING RATES OF RETURN, PRICE FLUCTUATION AND RISKS WERE FULLY DISCLOSED TO YOU AT THE TIME OF PURCHASE.

ALLEGED UNSUITABLE INVESTMENT STRATEGY.

$428,000.00

$43,500.00