REGISTERED REPRESENTATIVE BIRCH WAS CLAIMANT'S REGISTERED REPRESENTATIVE FROM 2006 THROUGH 2014. BIRCH IS NOT A NAMED RESPONDENT IN THE ARBITRATION CLAIM, BUT IS IDENTIFIED AS THE AGENT FOR THE BROKER DEALER AND AS CLAIMANT'S BROKER. CLAIMANT ASSERTS THE FOLLOWING LEGAL THEORIES: VIOLATION OF COMMON LAW FRAUD, BREACH OF FIDUCIARY DUTY, AND NEGLIGENCE. THE STATEMENT OF CLAIM IS NOT SPECIFIC AS TO ALL TRANSACTIONS THAT PROMPTED THE CLAIM BUT SPECIFICALLY MENTIONS A REIT AND A LIMITED PARNERSHIP. CLAIMANT'S ALLEGATIONS ARE WITHOUT MERIT AND WILL BE VIGOROUSLY DEFENDED. CLAIMANT WAS A SOPHISTICATED, ACCREDITED INVESTOR WHO WAS FULLY APPRISED OF, UNDERSTOOD, AND APPROVED EACH TRANSACTION IN HIS ACCOUNTS.

$100,000.00

$35,000.00

To avoid the time, expense, and risk of further litigation, MACC entered into a settlement of all claims. The settlement sum MACC paid was $35,000. Although the registered representative was not named as a party, pursuant to the terms of his indemnification agreement with the broker/dealer, he was obligated to contribute to the settlement. Registered representative vociferously disputes the allegations.