CUSTOMER LOST APPROXIMATELY $500,000 DUE TO A DECLINE IN STOCK PRICE BROUGHT ABOUT BY RESTATEMENT OF FINANCIALS. THERE WERE QUESTIONS RAISED OVER THE DISTRIBUTION OF SHARES AND THE TECHNICAL REGISTRATION OF THEM.

$500,000.00

$200,000.00

SETTLEMENT OF $200,000 WHICH WAS PAID ENTIRELY BY THE FIRM EXCEPT SOME SMALL COMMISSIONS ORIGINALLY EARNED BY BROKER. CUSTOMER WAS A VERY SOPHISTICATED INVESTOR WHO BOUGHT OVER 123,000 SHARES BETWEEN 1981-1982, MOSTLY UNSOLICITED. THERE WERE NO SALES PRACTICE ALLEGATIONS RAISED AGAINST THE BROKER. THE SETTLEMENT WAS REACHED TO AVOID LITIGATION COST WITH NO ADMISSION OF LIABILITY OF WRONGDOING ON THE PART OF THE BROKER.