MISSOURI CLIENT CLAIMED THAT HIS IRA ACCOUNT TOOK A DOWNTURN OF 33% OR $33,000.00 DURING THE PERIOD OF TIME SEPTEMBER 2008 THROUGH DECEMBER 2008. THE CLIENT FURTHER CLAIMED THAT THE FA DID NOT USE HIS FIDUCIARY RESPONSIBILITY TO MANAGE THE ACCOUNT AND THAT HE EXPECTS TO BE REIMBURSED FOR THE LOSSES. THE CLIENT'S IRA ACCOUNT WAS MAINTAINED AS A PRIVATE INVESTMENT MANAGEMENT ACCOUNT (PIM ACCOUNT). PIM IS A FEE-BASED DISCRETIONARY ADVISORY PROGRAM WHERE THE FA IS THE PORTFOLIO MANAGER.

$33,000.00

THE FIRM DENIED THE COMPLAINT VIA A LETTER TO THE CLIENT ON FEBRUARY 17, 2009. BASED UPON THE FIRM'S REVIEW, IT APPEARED THAT THE INVESTMENTS THAT WERE PURCHASED AND SOLD FOR THE CLIENT'S IRA ACCOUNT DURING THAT TIME PERIOD WERE CONSISTENT WITH HIS GROWTH AND INCOME INVESTMENT OBJECTIVES AND HIS MODERATE RISK TOLERANCE. THE CLIENT'S IRA ACCOUNT OUTPERFORMED THE MAJOR STOCK AVERAGES OVER ONE (1), FIVE (5) AND TEN (10) YEAR TIME PERIODS. FROM INCEPTION THROUGH SEPTEMBER 30, 2008 THE CLIENT'S IRA ACCOUNT ACHIEVED A NET DOLLAR WEIGHTED RETURN OF 11.3%. BASED UPON THE FIRM'S REVIEW, THERE WAS NO EVIDENCE TO SUGGEST THAT THE CLIENT'S IRA ACCOUNT WAS MISMANAGED BY EITHER THE FIRM OR THE FA. IT APPEARED THAT THE PERFORMANCE OF THE CLIENT'S INVESTMENTS WAS THE RESULT OF MARKET FORCES THAT WERE BEYOND THE CONTROL OF EITHER THE FIRM OR ITS ASSOCIATES.