BREACH OF CONTRACT, COMMON LAW FRAUD, CONSPIRACY, PROMISSORY ESTOPPEL, CONVERSION, NEGLIGENCE, MALPRACTIVE, BREACH OF FIDUCIARY DUTY, BREACH OF MICHIGAN SECURITIES LAW, VIOLATION OF MICHIGAN CONSUMER PROTECTION LAW.

$135,000.00

$31,000.00

KENNETH MORRIS WAS NAMED BECAUSE CO-DEFENDANT MARK PROMACK WAS PURPORTEDLY UNDER HIS SUPERVISION AROUND THE TIME OF THE OCCURRENCE OF SOME OF THE ALLEGED TRANSACTIONS. MARK PROMACK HAS SINCE BEEN BARRED FROM ASSOCIATION WITH THE NASD FOR LIFE AND FINED $10,000 FOR WILLFUL VIOLATION OF VESTAX AND NASD RULES AGAINST SELLING AWAY AS A RESULT OF SIMILAR ARBITRATION. VESTAX, KENNETH MORRIS, AND SOCIETY FOR LIFETIME PLANNING HAD ABSOLUTELY NO KNOWLEDGE OF THE TRANSACTIONS NOR WERE THEY APPROVED OR PROCESSED THROUGH VESTAX. UPON DETAILED INVESTIGATION BY VESTAX PROMACK DENIED ANY KNOWLEDGE OF OR INVOLVEMENT IN THE TRANSACTIONS.

THE ALLEGATIONS AGGAINST ALL RESPONDENTS INCLUDED: BREACH OF CONTRACT, COMMONLAW FRAUD, CONSPIRACY, PROMISSARY ESTOPPEL, CONVERSION, NEGLIGENCE, FIDUCIARY DUTY, MALPRACTICE, BREACH OF MICHIGAN SECURITIES LAW AND VIOLATION OF THE MICHIGAN CONSUMER PROTECTION LAW. MR. MORRIS WAS A REGISTERED REPRESENTATIVE OF VESTAX SECURITIES AT THE TIME OF THE INCIDENT.

$70,000.00

$56,300.00

SETTLED BY MEDIATION BY PAYMENT OF $42,000 BY VESTAX SECURITIES CORPORATION AND $14,300, JOINTLY BY KENNETH C. MORRIS AND SOCIETY FOR LIFETIME PLANNING. THE ARBITRATION WAS DISMISSED BY CLAIMANTS AS A RESULT OF THE MEDIATION AGREEMENT. THE RESPONDENTS DO NOT CONSIDER THIS SETTLEMENT AN ADMISSION OR ACKNOWLEDGEMENT OF WRONGDOING. THE SETTLEMENT WAS REACHED TO AVOID LITIGATION AND UNDUE LEGAL EXPENSES. THE RESPONDENTS ALSO CONTEND THAT THEY HAD NO KNOWLEDGE OF THE SALE OF SECURITIES TO THE CLAIMANTS AND THAT SUCH SECURITIES SOLD TO THE CLAIMANTS WERE NOT APPROVED BY, SUBMITTED TO OR PROCESSED BY THE BROKER/DEALER. THE CLAIMANT MADE NO ALLEGATION OF ACTUAL SALES VIOLATIONS OR MISREPRESENTATIONS BY ME OR SOCIETY FOR LIFETIME PLANNING. RATHER, THE STATEMENT OF CLAIM THAT ANOTHER REPRESENTATIVE PURPORTEDLY UNDER MY SUPERVISION ALLEGEDLY SOLD UNAUTHORIZED PRODUCTS. AT ALL TIME, I HAVE DENIED ANY WRONGDOING.