Time Frame: November 01, 2007 to June 25th, 2008 What were the allegations against the individual? The trustee alleges the Financial Advisor failed to follow her instructions and placed the account in a risky investment.

$480,000.00

CLAIMANT ALLEGES MISREPRESENTATIONS AND OMISSIONS, NEGLIGENCE, UNSUITABILITY, FRAUD, AND BREACH OF FIDUCIARY DUTY, CLAIMANT ALSO ALLEGED FAILURE TO SUPERVISE.

$50,000.00

$25,000.00

CLAIMANT ALLEGES MISREPRESENTATION, OMISSIONS, FRAUD, NEGLIGENCE, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT AND UNSUITABLE RECOMMENDATIONS IN CONNECTION WITH THE PURCHASES OF STRUCTURED PRODUCTS ISSUED BY LEHMAN BROTHERS HOLDINGS, INC. TIME FRAME 4/07 - 6/08

$1,430,000.00

$822,500.00

CLIENT STATES THAT HE INDICATED THAT HE DID NOT WANT TO TAKE ANY TYPE OF RISK WITH HIS LIFE SAVINGS. CLIENT STATED HE ONLY WANTED TO INVEST IN CD'S. CLIENT FURTHER STATES THAT THE INVESTMENTS (AUCTION RATE SECURITIES) WERE NOT SUITABLE. DAMAGES ESTIMATED TO BE IN EXCESS OF $5,000.

$5,000.00

$200,000.00

THE COMPLAINT AROSE IN CONNECTION WITH THE INDUSTRY WIDE BREAKDOWN OF LIQUIDITY IN THE MARKET FOR AUCTION RATE SECURITIES ("ARS"). THE FIRM AGREED TO REPURCHASE THE ARS SECURITIES AT ISSUE AT PAR VALUE FROM THE CLIENT PURSUANT TO A GLOBAL REPURCHASE AGREEMENT IT ENTERED INTO WITH SEVERAL REGULATORY BODIES. THIS WAS NOT A SETTLEMENT OF A DISPUTE BETWEEN THE CLIENT AND THE REPRESENTATIVE AND WAS NOT BASED ON THE MERITS OF THE CLIENT'S SPECIFIC CONCERNS OR ANY FINDING OF FAULT OR WRONGDOING BY THE NAMED REPRESENTATIVE. THE NAMED REPRESENTATIVE WAS NOT A PARTY TO, AND DID NOT AGREE TO OR PARTICIPATE IN, THE REPURCHASE AGREEMENT BETWEEN THE FIRM AND THE RELEVANT REGULATORY BODIES. THE NAMED REPRESENTATIVE DID NOT MAKE ANY PAYMENTS TO THE CLIENT AND THE NAMED REPRESENTATIVE WAS NOT ASKED TO AND DID NOT CONTRIBUTE TO THE SETTLEMENT AMOUNT. THE LISTED "SETTLEMENT AMOUNT" REPRESENTS ONLY THE GROSS INITIAL PAR VALUE OF THE ARS POSITION AND DOES NOT TAKE INTO ACCOUNT THE ACTUAL VALUE OF THE ARS POSITION AT THE TIME THE FIRM RECEIVED IT BACK FROM THE CLIENT IN CONNECTION WITH THE SETTLEMENT. THIS MATTER IS BEING REPORTED AS A SETTLEMENT PURSUANT TO THE REQUIREMENTS OF FINRA REGULATORY NOTICE 09-12. (SEE OCCURANCE ID#1401271)