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

$125,000.00

$125,000.00

CLIENT ALLEGES THAT THE SALE OF SERVICE CORP., A BELOW INVESTMENT GRADE CORPORATE BOND, WAS "IMPROPER" AS THE COMPANY HAD EXPLICITLY EXPLAINED THAT IT DOES NOT AND WILL NOT INVEST IN ANY CORPORATE BONDS THAT ARE BELOW INVESTMENT GRADE. CLIENT ALLEGES THAT IT WAS NOT TOLD THAT SERVICE CORP. BOND WAS BELOW INVESTMENT GRADE WHEN IT WAS PRESENTED WITH THE BOND.

$500,000.00

$87,847.23

WITH REGARDS TO THE COMVERSE TECHNOLOGY COMPLAINT I RESPECTFULLY REJECT THE CLIENTS CLAIM THAT THEIR PURCHASE OF A SERVICE CORPORATION CORPORATE BOND WAS IMPROPER BECAUSE OF ITS RANKING AND RATING. PRIOR TO THE PURCHASE OF THESE BONDS, I MADE IT VERY CLEAR OF THE RATING OF THIS SECURITY. THE CLIENTS HAD EVERY OPPORTUNITY TO REVIEW THIS INFORMATION AND REJECT THIS OFFER PRIOR TO THE PURCHASE IF THEY SO DESIRED. THEY CHOSE TO ACCEPT IT. IN FACT, THE FUNDS TO COVER THIS PURCHASE WERE RECEIVED ON SETTLEMENT DATE (T+3) VIA FED FUNDS FOR THE ENTIRE AMOUNT WHILE IN FULL KNOWLEDGE OF THE DETAILS, INCLUDING RATING AND RANKING, OF THIS CORPORATE BOND.