PAUL JAMES MARSHALL CRD#

Transcription

1 BrokerCheck Report PAUL JAMES MARSHALL CRD# Report # , data current as of Wednesday, October 29, Section Title Report Summary Broker Qualifications Registration and Employment History Disclosure Events Page(s)

2 About BrokerCheck BrokerCheck offers information on all current, and many former, registered securities brokers, and all current and former registered securities firms. FINRA strongly encourages investors to use BrokerCheck to check the background of securities brokers and brokerage firms before deciding to conduct, or continue to conduct, business with them. What is included in a BrokerCheck report? BrokerCheck reports for individual brokers include information such as employment history, professional qualifications, disciplinary actions, criminal convictions, civil judgments and arbitration awards. BrokerCheck reports for brokerage firms include information on a firm s profile, history, and operations, as well as many of the same disclosure events mentioned above. Please note that the information contained in a BrokerCheck report may include pending actions or allegations that may be contested, unresolved or unproven. In the end, these actions or allegations may be resolved in favor of the broker or brokerage firm, or concluded through a negotiated settlement with no admission or finding of wrongdoing. Where did this information come from? The information contained in BrokerCheck comes from FINRA s Central Registration Depository, or CRD and is a combination of: o information FINRA and/or the Securities and Exchange Commission (SEC) require brokers and brokerage firms to submit as part of the registration and licensing process, and o information that regulators report regarding disciplinary actions or allegations against firms or brokers. How current is this information? Generally, active brokerage firms and brokers are required to update their professional and disciplinary information in CRD within 30 days. Under most circumstances, information reported by brokerage firms, brokers and regulators is available in BrokerCheck the next business day. What if I want to check the background of an investment adviser firm or investment adviser representative? To check the background of an investment adviser firm or representative, you can search for the firm or individual in BrokerCheck. If your search is successful, click on the link provided to view the available licensing and registration information in the SEC's Investment Adviser Public Disclosure (IAPD) website at In the alternative, you may search the IAPD website directly or contact your state securities regulator at Are there other resources I can use to check the background of investment professionals? FINRA recommends that you learn as much as possible about an investment professional before deciding to work with them. Your state securities regulator can help you research brokers and investment adviser representatives doing business in your state. Using this site/information means that you accept the FINRA BrokerCheck Terms and Conditions. A complete list of Terms and Conditions can be found at brokercheck.finra.org For additional information about the contents of this report, please refer to the or It provides a glossary of terms and a list of frequently asked questions, as well as additional resources. For more information about FINRA, visit Thank you for using FINRA BrokerCheck.

3 PAUL J. MARSHALL CRD# This broker is not currently registered. Report Summary for this Broker This report summary provides an overview of the broker's professional background and conduct. Additional information can be found in the detailed report. Broker Qualifications This broker is not currently registered. This broker has passed: 1 Principal/Supervisory Exam 1 General Industry/Product Exam 2 State Securities Law Exams Disclosure Events All individuals registered to sell securities or provide investment advice are required to disclose customer complaints and arbitrations, regulatory actions, employment terminations, bankruptcy filings, and criminal or civil judicial proceedings. Are there events disclosed about this broker? Yes Registration History This broker was previously registered with the following securities firm(s): AMERICAN WEALTH MANAGEMENT, INC. CRD# ATLANTA, GA 07/ /2011 OPPENHEIMER & CO. INC. CRD# 249 LONGBOAT KEY, FL 07/ /2008 BEAR, STEARNS & CO. INC. CRD# 79 NEW YORK, NY 02/ /2004 The following types of disclosures have been reported: Type Count Regulatory Event 7 Civil Event 1 Customer Dispute 3 Termination 2 Investment Adviser Representative Information The information below represents the individual's record as a broker. For details on this individual's record as an investment adviser representative, visit the SEC's Investment Adviser Public Disclosure website at 1

4 Broker Qualifications Registrations This section provides the self-regulatory organizations (SROs) and U.S. states/territories the broker is currently registered and licensed with, the category of each license, and the date on which it became effective. This section also provides, for every brokerage firm with which the broker is currently employed, the address of each branch where the broker works. This broker is not currently registered. 2

5 Broker Qualifications Industry Exams this Broker has Passed This section includes all securities industry exams that the broker has passed. Under limited circumstances, a broker may attain a registration after receiving an exam waiver based on exams the broker has passed and/or qualifying work experience. Any exam waivers that the broker has received are not included below. This individual has passed 1 principal/supervisory exam, 1 general industry/product exam, and 2 state securities law exams. Principal/Supervisory Exams Exam Category Date General Securities Sales Supervisor Examination (Options Module & General Module) Series 8 09/18/1998 General Industry/Product Exams Exam Category Date General Securities Representative Examination Series 7 03/18/1989 State Securities Law Exams Exam Category Date Uniform Securities Agent State Law Examination Series 63 03/28/1989 Uniform Investment Adviser Law Examination Series 65 04/03/1992 Additional information about the above exams or other exams FINRA administers to brokers and other securities professionals can be found at 3

6 Registration and Employment History Registration History The broker previously was registered with the following firms: Registration Dates Firm Name CRD# Branch Location 07/ /2011 AMERICAN WEALTH MANAGEMENT, INC ATLANTA, GA 07/ /2008 OPPENHEIMER & CO. INC. 249 LONGBOAT KEY, FL 02/ /2004 BEAR, STEARNS & CO. INC. 79 NEW YORK, NY 03/ /2002 MAG FINANCIAL, INC PHILADELPHIA, PA 07/ /2002 ROBERT W. BAIRD & CO. INCORPORATED 8158 MILWAUKEE, WI 05/ /1998 PRUDENTIAL SECURITIES INCORPORATED 7471 NEW YORK, NY 03/ /1993 INTERSTATE/JOHNSON LANE CORPORATION 431 CHARLOTTE, NC 06/ /1991 PAINEWEBBER INCORPORATED 8174 WEEHAWKEN, NJ Employment History This section provides up to 10 years of an individual broker's employment history as reported by the individual broker on the most recently filed Form U4. Please note that the broker is required to provide this information only while registered with FINRA or a national securities exchange and the information is not updated via Form U4 after the broker ceases to be registered. Therefore, an employment end date of "Present" may not reflect the broker's current employment status. Employment Dates Employer Name Employer Location 02/ Present BRIDGE FINANCIAL (156724) ATLANTA, GA 07/ /2011 AMERICAN WEALTH MANGEMENT ATLANTA, GA 07/ /2008 OPPENHEIMER & CO. INC. ATLANTA, GA Other Business Activities This section includes information, if any, as provided by the broker regarding other business activities the broker is currently engaged in either as a proprietor, partner, officer, director, employee, trustee, agent or otherwise. This section does not include non-investment related activity that is exclusively charitable, civic, religious or fraternal and is recognized as tax exempt. PART TIME SALES OF INSURANCE PRODUCTS, PART OWNER REAL ESTATE COMPANY OWNED BY HIS FATHER-MIDLAND GROUP 4

7 Registration and Employment History 5

8 Disclosure Events What you should know about reported disclosure events: 1. All individuals registered to sell securities or provide investment advice are required to disclose customer complaints and arbitrations, regulatory actions, employment terminations, bankruptcy filings, and criminal or civil judicial proceedings. 2. Certain thresholds must be met before an event is reported to CRD, for example: o A law enforcement agency must file formal charges before a broker is required to disclose a particular criminal event. o A customer dispute must involve allegations that a broker engaged in activity that violates certain rules or conduct governing the industry and that the activity resulted in damages of at least $5, Disclosure events in BrokerCheck reports come from different sources: o As mentioned at the beginning of this report, information contained in BrokerCheck comes from brokers, brokerage firms and regulators. When more than one of these sources reports information for the same disclosure event, all versions of the event will appear in the BrokerCheck report. The different versions will be separated by a solid line with the reporting source labeled. 4. There are different statuses and dispositions for disclosure events: o A disclosure event may have a status of pending, on appeal, or final. A "pending" event involves allegations that have not been proven or formally adjudicated. An event that is "on appeal" involves allegations that have been adjudicated but are currently being appealed. A "final" event has been concluded and its resolution is not subject to change. o A final event generally has a disposition of adjudicated, settled or otherwise resolved. An "adjudicated" matter includes a disposition by (1) a court of law in a criminal or civil matter, or (2) an administrative panel in an action brought by a regulator that is contested by the party charged with some alleged wrongdoing. A "settled" matter generally involves an agreement by the parties to resolve the matter. Please note that brokers and brokerage firms may choose to settle customer disputes or regulatory matters for business or other reasons. A "resolved" matter usually involves no payment to the customer and no finding of wrongdoing on the part of the individual broker. Such matters generally involve customer disputes. For your convenience, below is a matrix of the number and status of disclosure events involving this broker. Further information regarding these events can be found in the subsequent pages of this report. You also may wish to contact the broker to obtain further information regarding these events. Pending Final On Appeal Regulatory Event

9 Civil Event Customer Dispute 0 3 N/A Termination N/A 2 N/A 7

10 Disclosure Event Details When evaluating this information, please keep in mind that a discloure event may be pending or involve allegations that are contested and have not been resolved or proven. The matter may, in the end, be withdrawn, dismissed, resolved in favor of the broker, or concluded through a negotiated settlement for certain business reasons (e.g., to maintain customer relationships or to limit the litigation costs associated with disputing the allegations) with no admission or finding of wrongdoing. This report provides the information exactly as it was reported to CRD and therefore some of the specific data fields contained in the report may be blank if the information was not provided to CRD. Regulatory - Final This type of disclosure event may involves (1) a final, formal proceeding initiated by a regulatory authority (e.g., a state securities agency, self-regulatory organization, federal regulatory such as the Securities and Exchange Commission, foreign financial regulatory body) for a violation of investment-related rules or regulations; or (2) a revocation or suspension of a broker's authority to act as an attorney, accountant, or federal contractor. Disclosure 1 of 6 Reporting Source: Regulatory Action Initiated By: Sanction(s) Sought: Regulator GEORGIA Revocation Date Initiated: 09/13/2013 Docket/Case Number: Employing firm when activity occurred which led to the regulatory action: ENSC BRIDGE SECURITIES, LLC Product Type: No Product Allegations: THE COMMISSIONER OF SECURITIES FOR THE STATE OF GEORGIA ("COMMISSIONER") ENTERED AN ORDER ON SEPTEMBER 13, 2013: (I) SUMMARILY SUSPENDING THE REGISTRATIONS OF BRIDGE SECURITIES, LLC (CRD# ) AND PAUL JAMES MARSHALL (CRD# ) ("RESPONDENTS"); AND (II) REVOKING SUCH REGISTRATIONS PENDING A 30-DAY EFFECTIVENESS PERIOD DURING WHICH RESPONDENTS MAY SEEK A HEARING. THE ORDER WAS BASED ON THE ENTRY OF A PRELIMINARY INJUNCTION BY THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA, ATLANTA DIVISION AGAINST RESPONDENTS AND THAT COURT'S ORDERING OF AN ASSET FREEZE OF RESPONDENTS' FUNDS, ALL IN CONNECTION WITH THE FILING OF A COMPLAINT BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION ("SEC") AGAINST RESPONDENTS ALLEGING SEVERAL 8

11 Current Status: Resolution: Does the order constitute a final order based on violations of any laws or regulations that prohibit fraudulent, manipulative, or deceptive conduct? COMPLAINT BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION ("SEC") AGAINST RESPONDENTS ALLEGING SEVERAL COUNTS OF SECURITIES FRAUD UNDER FEDERAL LAW (SEC V. PAUL MARSHALL ET AL., NO. 1:13-CV-3032-TCB (N.D. GA. SEPTEMBER 11,2013). Final Order Yes Resolution Date: 09/13/2013 Sanctions Ordered: If the regulator is the SEC, CFTC, or an SRO, did the action result in a finding of a willful violation or failure to supervise? Revocation No (1) willfully violated any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any of such Acts, or any of the rules of the Municipal Securities Rulemaking Board, or to have been unable to comply with any provision of such Act, rule or regulation? (2) willfully aided, abetted, counseled, commanded, induced, or procured the violation by any person of any provision of the Securities Act of 1933, the 9

12 (2) willfully aided, abetted, counseled, commanded, induced, or procured the violation by any person of any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any of such Acts, or any of the rules of the Municipal Securities Rulemaking Board? or (3) failed reasonably to supervise another person subject to your supervision, with a view to preventing the violation by such person of any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any such Acts, or any of the rules of the Municipal Securities Rulemaking Board? Regulator Statement THE COMMISSIONER OF SECURITIES FOR THE STATE OF GEORGIA ("COMMISSIONER") ENTERED AN ORDER ON SEPTEMBER 13, 2013: (I) SUMMARILY SUSPENDING THE REGISTRATIONS OF BRIDGE SECURITIES, LLC (CRD# ) AND PAUL JAMES MARSHALL (CRD# ) ("RESPONDENTS"); AND (II) REVOKING SUCH REGISTRATIONS PENDING A 30-DAY EFFECTIVENESS PERIOD DURING WHICH RESPONDENTS MAY SEEK A HEARING. THE ORDER WAS BASED ON THE ENTRY OF A PRELIMINARY INJUNCTION BY THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA, ATLANTA DIVISION AGAINST RESPONDENTS AND THAT COURT'S ORDERING OF AN ASSET FREEZE OF RESPONDENTS' FUNDS, ALL IN CONNECTION WITH THE FILING OF A 2014 FINRA. All rights reserved. Report# COMPLAINT about BY PAUL THE J. UNITED MARSHALL. STATES Data current SECURITIES as of Wednesday, AND October EXCHANGE 29,

13 i Disclosure 2 of 6 Reporting Source: Regulatory Action Initiated By: Sanction(s) Sought: RESPONDENTS' FUNDS, ALL IN CONNECTION WITH THE FILING OF A COMPLAINT BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION ("SEC") AGAINST RESPONDENTS ALLEGING SEVERAL COUNTS OF SECURITIES FRAUD UNDER FEDERAL LAW (SEC V. PAUL MARSHALL ET AL., NO. 1:13-CV-3032-TCB (N.D. GA. SEPTEMBER 11,2013). Regulator FINRA Other: N/A Date Initiated: 01/18/2013 Docket/Case Number: Employing firm when activity occurred which led to the regulatory action: OPPENHEIMER & CO. INC. AND AMERICAN WEALTH MANAGEMENT, INC., Product Type: Other: REAL ESTATE INVESTMENT Allegations: FINRA RULES 2010, 8210, NASD RULES 2110, 2330: MARSHALL CONVERTED FUNDS TOTALING $25,000 FROM HIS MEMBER FIRM'S CUSTOMER. MARSHALL DEPOSITED CHECKS FOR THE CUSTOMER, A TOTAL OF $25,000, INTO A BANK ACCOUNT HE CONTROLLED, FAILED TO INVEST THE FUNDS IN A REAL ESTATE ENTITY ON THE CUSTOMER'S BEHALF, AND INSTEAD CONVERTED THE FUNDS TO HIS OWN USE AND BENEFIT. THE CUSTOMER PROVIDED SOME CHECKS TO MARSHALL, ONE MADE PAYABLE TO MARSHALL AND ANOTHER TO AN ENTITY FOR WHICH MARSHALL SERVED AS PRESIDENT AND DIRECTOR. THE CHECKS WERE PROVIDED TO MARSHALL BY THE CUSTOMER FOR PURPOSES OF INVESTMENT IN A REAL ESTATE ENTITY. MARSHALL HAD SOLICITED THE CUSTOMER TO INVEST IN THE ENTITY AND PROVIDED HER WITH A WRITTEN CONTRACT, WHICH SHE SIGNED, TO INVEST $30,000 IN EARNEST MONEY FOR THE REAL ESTATE PROJECT. TO DATE, MARSHALL HAS FAILED TO RETURN ANY OF THE FUNDS TO THE CUSTOMER. WHILE HE WAS ASSOCIATED WITH ANOTHER MEMBER FIRM, MARSHALL PROVIDED A BUSINESS CARD TO A CUSTOMER THAT REFLECTED FALSE AND MISLEADING INFORMATION. SPECIFICALLY, THE BUSINESS CARD REFLECTED THAT MARSHALL WAS A MANAGING DIRECTOR OF A CERTAIN DIVISION OF A COMPANY. AT NO TIME WAS MARSHALL ASSOCIATED WITH OR EMPLOYED BY THE COMPANY, NOR DID HE RECEIVE APPROVAL TO USE THE CARD FROM HIS FIRM. MARSHALL FAILED TO FULLY RESPOND TO FINRA REQUESTS FOR INFORMATION AND DOCUMENTS. THE 2014 FINRA. All rights reserved. Report# REQUESTED about DOCUMENTS PAUL J. MARSHALL. WERE Data MATERIAL current as of Wednesday, TO FINRA'S October INVESTIGATION, 29, AND MARSHALL'S FAILURE TO PRODUCE THEM IMPEDED FINRA'S ABILITY 11

14 Current Status: Resolution: Does the order constitute a final order based on violations of any laws or regulations that prohibit fraudulent, manipulative, or deceptive conduct? TO FINRA REQUESTS FOR INFORMATION AND DOCUMENTS. THE REQUESTED DOCUMENTS WERE MATERIAL TO FINRA'S INVESTIGATION, AND MARSHALL'S FAILURE TO PRODUCE THEM IMPEDED FINRA'S ABILITY TO CONDUCT THE INVESTIGATION. Final Decision & Order of Offer of Settlement No Resolution Date: 09/12/2013 Sanctions Ordered: If the regulator is the SEC, CFTC, or an SRO, did the action result in a finding of a willful violation or failure to supervise? Bar (Permanent) No (1) willfully violated any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any of such Acts, or any of the rules of the Municipal Securities Rulemaking Board, or to have been unable to comply with any provision of such Act, rule or regulation? (2) willfully aided, abetted, counseled, commanded, induced, or procured the violation by any person of any provision of the Securities Act of 1933, the 12

15 (2) willfully aided, abetted, counseled, commanded, induced, or procured the violation by any person of any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any of such Acts, or any of the rules of the Municipal Securities Rulemaking Board? or (3) failed reasonably to supervise another person subject to your supervision, with a view to preventing the violation by such person of any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any such Acts, or any of the rules of the Municipal Securities Rulemaking Board? Sanction 1 of 1 Sanction Type: Capacities Affected: Duration: ANY CAPACITY Start Date: 09/12/2013 End Date: Bar (Permanent) Regulator Statement WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, PAUL JAMES 2014 FINRA. All rights reserved. Report# MARSHALL about CONSENTED PAUL J. MARSHALL. TO THE Data DESCRIBED current as of Wednesday, SANCTION October AND 29, TO THE 13

16 Regulator Statement i Disclosure 3 of 6 Reporting Source: Regulatory Action Initiated By: Sanction(s) Sought: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, PAUL JAMES MARSHALL CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. AS ALLEGED IN THE COMPLAINT (AS AMENDED HEREIN), PAUL JAMES MARSHALL FAILED TO FULLY RESPOND OR TIMELY RESPOND, TO FINRA'S MULTIPLE REQUESTS FOR DOCUMENTS, INCLUDING TAX RETURNS AND COPIES OF STATEMENTS FOR BANK ACCOUNTS HE CONTROLLED, IN VIOLATION OF FINRA RULES 8210 AND Regulator FINRA Suspension Date Initiated: 10/12/2012 Docket/Case Number: Employing firm when activity occurred which led to the regulatory action: N/A Product Type: Allegations: Current Status: Resolution: Does the order constitute a final order based on violations of any laws or regulations that prohibit fraudulent, manipulative, or deceptive conduct? No Product RESPONDENT MARSHALL FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE. (THE HEARING PANEL'S RESTITUTION ORDER) Final LETTER No Resolution Date: 11/16/2012 Sanctions Ordered: Suspension No 14

17 If the regulator is the SEC, CFTC, or an SRO, did the action result in a finding of a willful violation or failure to supervise? No (1) willfully violated any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any of such Acts, or any of the rules of the Municipal Securities Rulemaking Board, or to have been unable to comply with any provision of such Act, rule or regulation? (2) willfully aided, abetted, counseled, commanded, induced, or procured the violation by any person of any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any of such Acts, or any of the rules of the Municipal Securities Rulemaking Board? or (3) failed reasonably to supervise another person subject to your supervision, with a view to preventing the violation by such person of 2014 any provision FINRA. All rights of the reserved. Report# about PAUL J. MARSHALL. Data current as of Wednesday, October 29, Securities Act of 1933, the 15

18 (3) failed reasonably to supervise another person subject to your supervision, with a view to preventing the violation by such person of any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any such Acts, or any of the rules of the Municipal Securities Rulemaking Board? Sanction 1 of 1 Sanction Type: Capacities Affected: Duration: ANY CAPACITY N/A Start Date: 11/16/2012 End Date: Suspension Regulator Statement i Disclosure 4 of 6 PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, RESPONDENT MARSHALL IS SUSPENDED NOVEMBER 16, 2012 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE. (THE HEARING PANEL'S RESTITUTION ORDER) - ALTHOUGH MARSHALL INITIALLY APPEALED THIS DECISION TO THE FINRA NATIONAL ADJUDICATORY COUNCIL (NAC), HE SUBSEQUENTLY REQUESTED THAT THE APPEAL BE WITHDRAWN. ON MAY 16, 2012, THE FINRA OFFICE OF GENERAL COUNSEL ACKNOWLEDGED HIS REQUEST AND ADVISED HIM THAT THE NAC DETERMINED NOT TO CALL THIS MATTER FOR REVIEW. AS A RESULT, THE DECISION ISSUED BY THE OFFICE OF HEARING OFFICERS ON JANUARY 25, 2012, INCLUDING THE SANCTIONS IMPOSED BY THE DECISION, BECAME FINAL UPON HIS WITHDRAWAL REQUEST. 16

19 Reporting Source: Regulatory Action Initiated By: Sanction(s) Sought: Regulator FINRA Other: N/A Date Initiated: 12/23/2010 Docket/Case Number: Employing firm when activity occurred which led to the regulatory action: OPPENHEIMER & CO. Product Type: Allegations: Current Status: Action Appealed To: Resolution: Equity Listed (Common & Preferred Stock) FINRA RULES 2010, 8210, NASD RULES 2110, 2330(A), PAUL JAMES MARSHALL OBTAINED THE OPTION TO PURCHASE SHARES OF A COMPANY AFTER HE OBTAINED BANK FINANCING FOR THE COMPANY AND OFFERED TO PURCHASE SHARES FOR A MEMBER FIRM CUSTOMER. THE CUSTOMER WIRED $38,200 TO A BANK ACCOUNT CONTROLLED BY MARSHALL TO PURCHASE THE SHARES BUT MARSHALL FAILED TO EXERCISE THE OPTION, DID NOT FORWARD THE FUNDS TO THE COMPANY AND DID NOT RETURN THE MONEY TO THE CUSTOMER BECAUSE MARSHALL MADE THE UNILATERAL DECISION THAT A JOINT BUSINESS VENTURE BETWEEN HIMSELF AND THE CUSTOMER OWED HIM THE MONEY. MARSHALL USED THE MONEY FOR HIS PERSONAL EXPENSES AND NOT FOR THE CUSTOMER'S BENEFIT. MARSHALL BORROWED $25,000 FROM THE CUSTOMER CONTRARY TO HIS FIRM'S WRITTEN SUPERVISORY PROCEDURES THAT DID NOT PERMIT REGISTERED REPRESENTATIVES FROM BORROWING FROM CUSTOMERS. MARSHALL WROTE A CHECK PAYABLE TO THE CUSTOMER'S BUSINESS FOR $25,000 TO PAY BACK THE LOAN BUT IT WAS NOT HONORED DUE TO MARSHALL'S LACK OF FUNDS IN HIS BANK ACCOUNT. MARSHALL FAILED TO COMPLETELY RESPOND TO FINRA REQUESTS FOR INFORMATION. Final SRO Date Appeal filed: 02/15/2012 Appeal Limitation Details: Decision Does the order constitute a final order based on violations of any laws or 2014 regulations FINRA. All that rights prohibit reserved. Report# about PAUL J. MARSHALL. Data current as of Wednesday, October 29, fraudulent, manipulative, or 17

20 Does the order constitute a final order based on violations of any laws or regulations that prohibit fraudulent, manipulative, or deceptive conduct? No Resolution Date: 05/09/2012 Sanctions Ordered: If the regulator is the SEC, CFTC, or an SRO, did the action result in a finding of a willful violation or failure to supervise? Civil and Administrative Penalty(ies)/Fine(s) Monetary Penalty other than Fines Suspension No (1) willfully violated any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any of such Acts, or any of the rules of the Municipal Securities Rulemaking Board, or to have been unable to comply with any provision of such Act, rule or regulation? (2) willfully aided, abetted, counseled, commanded, induced, or procured the violation by any person of any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of , FINRA. the Commodity All rights reserved. Report# about PAUL J. MARSHALL. Data current as of Wednesday, October 29, Exchange Act, or any rule or 18

21 (2) willfully aided, abetted, counseled, commanded, induced, or procured the violation by any person of any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any of such Acts, or any of the rules of the Municipal Securities Rulemaking Board? or (3) failed reasonably to supervise another person subject to your supervision, with a view to preventing the violation by such person of any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Advisers Act of 1940, the Investment Company Act of 1940, the Commodity Exchange Act, or any rule or regulation under any such Acts, or any of the rules of the Municipal Securities Rulemaking Board? Sanction 1 of 1 Sanction Type: Capacities Affected: Duration: Suspension ANY CAPACITY 30 BUSINESS DAYS Start Date: 06/04/2012 End Date: 07/16/

22 Monetary Sanction 1 of 3 Monetary Related Sanction: Total Amount: $3, Portion Levied against individual: Civil and Administrative Penalty(ies)/Fine(s) $3, Payment Plan: Is Payment Plan Current: Date Paid by individual: Was any portion of penalty waived? No Amount Waived: Monetary Sanction 2 of 3 Monetary Related Sanction: Total Amount: $2, Portion Levied against individual: Monetary Penalty other than Fines $2, Payment Plan: Is Payment Plan Current: Date Paid by individual: Was any portion of penalty waived? No Amount Waived: Monetary Sanction 3 of 3 Monetary Related Sanction: Restitution Total Amount: $25, Portion Levied against individual: $25, Payment Plan: Is Payment Plan Current: Date Paid by individual: Was any portion of penalty No 2014 waived? FINRA. All rights reserved. Report# about PAUL J. MARSHALL. Data current as of Wednesday, October 29,

23 Was any portion of penalty waived? No Amount Waived: Regulator Statement i Reporting Source: Regulatory Action Initiated By: Sanction(s) Sought: HEARING PANEL DECISION RENDERED JANUARY 25, 2012 WHEREIN MARSHALL IS FINED $3,500, SUSPENDED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR 30 BUSINESS DAYS, ORDERED TO PAY $25,000, PLUS INTEREST, IN RESTITUTION TO A CUSTOMER, AND ORDERED TO PAY COSTS OF $2, MARSHALL WAS FOUND NOT LIABLE FOR MISAPPROPRIATING CUSTOMER FUNDS IN VIOLATION OF NASD RULES 2110 AND 2330(A). THE FINE AND COSTS SHALL BE DUE AND PAYABLE UPON MARSHALL'S RETURN TO THE SECURITIES INDUSTRY. APPEALED TO THE NAC ON FEBRUARY 15, APPEAL WITHDRAWN MAY 9, DECISION IS FINAL MAY 9, SUSPENSION IS EFFECTIVE JUNE 4, 2012 THROUGH JULY 16, Broker FINANCIAL INDUSTRY REGULATORY AUTHORITY -- FINRA Other: N/A Date Initiated: 12/23/2010 Docket/Case Number: Employing firm when activity occurred which led to the regulatory action: OPPENHEIMER & CO. Product Type: Equity Listed (Common & Preferred Stock) Allegations: FINRA RULES 2010,8210,NASD RULES 2110,2330A, PAUL MARSHALL OBTAINED THE OPTION TO PURCHASE SHARES OF A COMPANY AFTER HE OBTAINED BANK FINANCING FOR THE COMPANY AND OFFERED TO PURCHASE SHARES FOR A MEMBER FIRM CUSTOMER. THE CUSTOMER WIRED $38,200 TO A BANK ACCOUNT CONTROLLED BY MARSHALL TO PURCHASE THE SHARES BUT MARSHALL FAILED TO EXERCISE THE OPTION, DID NOT FOWARD THE FUNDS TO THE COMPANY AND DID NOT RETURN THE MONEY TO THE CUSTOMER BECAUSE MARSHALL MADE A UNILATERAL DECISION THAT A JOINT BUSINESS VENTURE BETWEEN HIMSELF AND THE CUSTOMER OWED HIM THE MONEY. MARSHALL USED THE MONEY FOR HIS OWN PERSONAL EXPENSES AND NOT FOR THE CUSTOMER'S BENEFIT. MARSHALL BORROWED $25,00 FROM THE CUSTOMER CONTRARY TO HIS FIRM'S WRITTEN SUPERVISORY 2014 FINRA. All rights reserved. Report# PROCEDURES about PAUL THAT J. MARSHALL. DID NOT PERMIT Data current REGISTERED as of Wednesday, REPRESENTATIVES October 29, FROM BORROWING FROM CUSTOMERS. MARSHALL WROTE A CHECK 21

24 Current Status: CUSTOMER CONTRARY TO HIS FIRM'S WRITTEN SUPERVISORY PROCEDURES THAT DID NOT PERMIT REGISTERED REPRESENTATIVES FROM BORROWING FROM CUSTOMERS. MARSHALL WROTE A CHECK PAYABLE TO THE CUSTOMER'S BUSINESS FOR $25,000 TO PAY THE LOAN BUT IT WAS NOT HONORED DUE TO LACK OF FUNDS IN HIS BANK ACCOUNT. MARSHALL FAILED TO COMPLETELY RESPOND TO FINRA REQUESTS FOR INFORMATION. Pending i Disclosure 5 of 6 Reporting Source: Regulatory Action Initiated By: Sanction(s) Sought: Other Sanction(s) Sought: Broker GEORGIA STATE SECURITIES DIVISION Cease and Desist Date Initiated: 07/10/2008 Docket/Case Number: Employing firm when activity occurred which led to the regulatory action: Product Type: Other Product Type(s): Allegations: Current Status: Resolution: ENSC Other NO PRODUCTS EFFECTED PRIVATE SECURITIES TRANSACTION AND SUPPOSELY TOLD CLIENT TO SALE STOCK FOR MARGIN CALL Final Consent Resolution Date: 11/18/2008 Sanctions Ordered: Other Sanctions Ordered: Sanction Details: Broker Statement Cease and Desist/Injunction HEIGHTEN SUPERVISION INDEPENDENT COMPLIANCE CONSULTANT MR.MARSHALL NEITHER ADMITS OR DENIES THESE FINDINGS FACT AND CONCLUSIONS OF LAW 22

25 i Disclosure 6 of 6 Reporting Source: Regulatory Action Initiated By: Sanction(s) Sought: Other Sanction(s) Sought: Regulator Date Initiated: 06/08/1992 Docket/Case Number: Employing firm when activity occurred which led to the regulatory action: Product Type: Other Product Type(s): Allegations: Current Status: Resolution: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. C Final Consent Resolution Date: 06/08/1992 Sanctions Ordered: Other Sanctions Ordered: Sanction Details: Regulator Statement i Censure Monetary/Fine $2, ON JUNE 8, 1992, THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. C (DISTRICT NO. 7) SUBMITTED BY PAUL J. MARSHALL WAS ACCEPTED; THEREFORE, HE IS CENSURED AND FINED $2,500 - (ARTICLE III, SECTION 1 OF THE RULES OF FAIR PRACTICE - RESPONDENT MARSHALL ESTABLISHED RESOURCE MANAGEMENT ACCOUNTS FOR 16 PUBLIC CUSTOMERS AND SIGNED THE SIGNATURES OF THE CUSTOMERS ON ACCOUNT APPLICATIONS, WITHOUT THE KNOWLEDGE OR CONSENT OF THE CUSTOMERS; Reporting Source: 23

26 Reporting Source: Regulatory Action Initiated By: Sanction(s) Sought: Other Sanction(s) Sought: Broker NASD Date Initiated: 06/08/1992 Docket/Case Number: Employing firm when activity occurred which led to the regulatory action: Product Type: Other Product Type(s): Allegations: Current Status: Resolution: C DURING THE PERIOD FROM APPROX. AUGUST TO NOVEMBER, 1990 I ESTABLISHED RESOURCE MANAGEMENT ACCOUNTS ("RMA") FOR 16 CUSTOMERS WITHOUT THEIR KNOWLEDGE OR AUTHORIZATION; AND THAT IN ORDER TO ESTABLISH THESE ACCOUNTS, I PERSONALLY SIGNED THE SIGNATURES OF THESE CUSTOMERS ON RMA ACCOUNT APPLICATIONS, ALSO WITHOUT THEIR KNOWLEDGE OR AUTHORIZATION, IN VIOLATION OF ARTICLE III, SECTION 1 OF THE ASSOCIATION'S RULES OF FAIR PRACTICE. Final Consent Resolution Date: 06/08/1992 Sanctions Ordered: Other Sanctions Ordered: Sanction Details: Broker Statement Censure Monetary/Fine $2, I WAS CENSURED AND FINED $2,500 BY THE DBCC. Not Provided 24

27 Regulatory - Pending This type of disclosure event involves a pending formal proceeding initiated by a regulatory authority (e.g., a state securities agency, self-regulatory organization, federal regulatory agency such as the Securities and Exchange Commission, foreign financial regulatory body) for alleged violations of investment-related rules or regulations. Disclosure 1 of 1 Reporting Source: Regulatory Action Initiated By: Sanction(s) Sought: Regulator UNITED STATES SECURITIES AND EXCHANGE COMMISSION Other: N/A Date Initiated: 10/14/2014 Docket/Case Number: Employing firm when activity occurred which led to the regulatory action: Product Type: Allegations: Current Status: Regulator Statement No Product IA ADMIN RELEASE , OCTOBER 14, 2014: THE SEC DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TO SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 AGAINST PAUL MARSHALL. ON SEPTEMBER 16, 2014, A FINAL JUDGMENT WAS ENTERED AGAINST MARSHALL, PERMANENTLY ENJOINING HIM FROM FUTURE VIOLATIONS OF SECTION 17(A) OF THE SECURITIES ACT OF 1933, SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER, AND SECTIONS 206(1) AND 206(2) OF THE ADVISERS ACT, IN THE CIVIL ACTION, CIVIL ACTION NUMBER 1:13-CV-03032, IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA. Pending IN VIEW OF THE ALLEGATIONS MADE BY THE DIVISION OF ENFORCEMENT, THE COMMISSION DEEMS IT NECESSARY AND APPROPRIATE IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE PROCEEDINGS BE INSTITUTED. IT IS ORDERED THAT THE ADMINISTRATIVE LAW JUDGE SHALL ISSUE AN INITIAL DECISION NO LATER THAN 210 DAYS FROM THE DATE OF SERVICE OF THIS ORDER. 25

28 Civil - Pending This type of disclosure event involves a pending civil court action that seeks an injunction in connection with any investment-related activity or alleges a violation of any investment-related statute or regulation. Disclosure 1 of 1 Reporting Source: Initiated By: Relief Sought: Regulator Date Court Action Filed: 09/11/2013 Product Type: UNITED STATES SECURITIES AND EXCHANGE COMMISSION Civil and Administrative Penalty(ies)/Fine(s) Disgorgement Injunction Monetary Penalty other than Fines Restraining Order Other: ASSET FREEZE; ACCOUNTING; RETENTION OF DOCUMENTS Other: FRAUDULENT SECURITIES AND MUTUAL FUNDS Type of Court: Name of Court: Location of Court: Docket/Case #: Employing firm when activity occurred which led to the action: Allegations: Federal Court UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION 1:13-CV-3032 SEC LITIGATION RELEASE 22797, SEPTEMBER 12, 2013: ON SEPTEMBER 11, 2013, THE SECURITIES AND EXCHANGE COMMISSION FILED AN EMERGENCY ACTION SEEKING A TEMPORARY RESTRAINING ORDER AND OTHER EMERGENCY RELIEF IN FEDERAL COURT IN THE NORTHERN DISTRICT OF GEORGIA, CHARGING PAUL MARSHALL (MARSHALL), A STATE-REGISTERED INVESTMENT ADVISER REPRESENTATIVE, AND THREE ATLANTA-BASED COMPANIES THAT HE OWNED AND CONTROLLED WITH VIOLATIONS OF THE FEDERAL SECURITIES LAWS FOR MISAPPROPRIATING CLIENT FUNDS. ACCORDING TO THE COMMISSION'S COMPLAINT, SINCE AT LEAST 2011, MARSHALL, AN INVESTMENT ADVISER REPRESENTATIVE OF THE ONE OF THE COMPANIES, MISAPPROPRIATED AT LEAST $2 MILLION FROM ADVISORY CLIENTS. IN ITS COMPLAINT, THE COMMISSION ALLEGES THAT MARSHALL INSTRUCTED CLIENTS, SOME OF WHOM WERE ELDERLY, TO TRANSFER FUNDS TO BANK ACCOUNTS UNDER HIS CONTROL FOR 2014 FINRA. All rights reserved. Report# PURPORTED about INVESTMENT PAUL J. MARSHALL. IN VARIOUS Data current SECURITIES, as of Wednesday, INCLUDING October 29, MUTUAL FUNDS. INSTEAD, MARSHALL USED THOSE CLIENT FUNDS TO PAY 26

29 TRANSFER FUNDS TO BANK ACCOUNTS UNDER HIS CONTROL FOR PURPORTED INVESTMENT IN VARIOUS SECURITIES, INCLUDING MUTUAL FUNDS. INSTEAD, MARSHALL USED THOSE CLIENT FUNDS TO PAY PERSONAL EXPENSES, INCLUDING LUXURY VACATIONS AND PRIVATE SCHOOL TUITION FOR HIS CHILDREN. THE COMPLAINT FURTHER ALLEGES THAT MARSHALL CONCEALED HIS FRAUD BY PROVIDING ADVISORY CLIENTS WITH FABRICATED ACCOUNT STATEMENTS. ADDITIONALLY, THE COMMISSION'S COMPLAINT ALLEGES THAT MARSHALL, CURRENTLY THE MAJORITY OWNER AND MANAGING DIRECTOR OF A PURPORTED ALTERNATIVE FUEL COMPANY, MISAPPROPRIATED $100,000 FROM AN ADVISORY CLIENT WHO INVESTED IN THAT COMPANY. THE COMMISSION'S COMPLAINT ALLEGES THAT, THROUGH THEIR MISCONDUCT, MARSHALL, AND THE COMPANIES, VIOLATED SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER, AND THAT MARSHALL AND THE PURPORTED ALTERNATIVE FUEL ENTITY, VIOLATED SECTION 17(A) OF THE SECURITIES ACT OF FINALLY, THE COMPLAINT ALLEGES THAT MARSHALL AND TWO OF THE ENTITIES VIOLATED SECTIONS 206(1) AND 206(2) OF THE INVESTMENT ADVISERS ACT OF Current Status: Limitations or Restrictions in Effect During Appeal: ON SEPTEMBER 11, 2013, THE UNITED STATES DISTRICT JUDGE FOR THE NORTHERN DISTRICT OF GEORGIA, GRANTED THE COMMISSION'S REQUEST FOR EMERGENCY RELIEF, ISSUING AN ORDER TEMPORARILY RESTRAINING MARSHALL, AND THE ENTITIES FROM FURTHER SECURITIES LAWS VIOLATIONS, FREEZING THEIR ASSETS, PREVENTING THE DESTRUCTION OF DOCUMENTS, REQUIRING AN ACCOUNTING, AND EXPEDITING DISCOVERY. THE COURT ALSO SET A HEARING DATE OF SEPTEMBER 20, 2013 FOR THE COMMISSION'S REQUEST FOR A PRELIMINARY INJUNCTION. THE COMMISSION'S COMPLAINT ALSO SEEKS A PERMANENT INJUNCTION, DISGORGEMENT OF ILL-GOTTEN GAINS WITH PREJUDGMENT INTEREST, AND CIVIL PENALTIES. THOSE CLAIMS WILL BE ADJUDICATED AT A LATER DATE. Pending N/A 27

30 Customer Dispute - Settled This type of disclosure event involves a consumer-initiated, investment-related complaint, arbitration proceeding or civil suit containing allegations of sale practice violations against the broker that resulted in a monetary settlement to the customer. Disclosure 1 of 2 Reporting Source: Employing firm when activities occurred which led to the complaint: Allegations: Product Type: Broker ROBERT W. BAIRD & CO. INCORPORATED I HAVE NEVER SEEN ANYTHING IN WRITING ALLEGING ANY PROBLEMS REGARDING THE CLIENT'S ACCOUNT. HOWEVER, SOON AFTER THE CLIENT'S PURCHASE OF AN ANNUITY FROM MY FORMER FIRM I BECAME AWARE OF THE CLIENT'S MISTAKEN BELIEF THAT THE ANNUITY WHOLESALER GUARANTEED HIM A 6% RETURN AT THE TIME OF SALE. I TOLD THE CLIENT THEN THAT THERE WAS NO GUARANTEE AND THAT I HAD NEVER HEARD THE WHOLESALER OR ANYONE ELSE MAKE ANY SUCH REPRESENTATION. Annuity(ies) - Variable Alleged Damages: $110, Customer Complaint Information Date Complaint Received: 10/25/2001 Complaint Pending? Status: No Status Date: 01/08/2002 Settlement Amount: $24, Individual Contribution Amount: Broker Statement Settled $0.00 OVER A YEAR AFTER THE CLIENT'S PURCHASE OF THE ANNUITY, I LEARNED THAT MY FORMER FIRM HAD SETTLED A COMPLAINT WITH THE CLIENT. I WAS SURPRISED TO HEAR THAT A "DEAL" HAD BEEN MADE WITH THE CLIENT. APPARENTLY, MY FORMER FIRM PAID THE CLIENT $24,500. I WAS NEVER ASKED TO CONTRIBUTE, NOR HAVE I CONTRIBUTED TO THE PAYMENT. MOREOVER, I WAS SPECIFICALLY TOLD BY MY FORMER FIRM THAT THIS WAS A NON-REPORTABLE EVENT WITH RESPECT TO ME. I AM ONLY REPORTING THIS MATTER ON MY CURRENT U-4 IN ORDER TO 2014 FINRA. All rights reserved. Report# CLEAR UP THE about PAUL DISCLOSURE J. MARSHALL. DEFICIENCY Data current as THAT of Wednesday, WAS CAUSED October 29, BY THE U-4 AMENDMENT MY FORMER EMPLOYER PROCESSED AFTER MY 28

31 i Disclosure 2 of 2 Reporting Source: Employing firm when activities occurred which led to the complaint: Allegations: Product Type: Alleged Damages: Arbitration Information Arbitration/Reparation Claim filed with and Docket/Case No.: I AM ONLY REPORTING THIS MATTER ON MY CURRENT U-4 IN ORDER TO CLEAR UP THE DISCLOSURE DEFICIENCY THAT WAS CAUSED BY THE U-4 AMENDMENT MY FORMER EMPLOYER PROCESSED AFTER MY DEPARTURE, ALLEGEDLY ON MY BEHALF, TO REPORT THIS EVENT. Regulator Date Notice/Process Served: 05/27/1997 Arbitration Pending? Disposition: PRUDENTIAL SECURITIES INCORPORATED CHURNING; BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACH OF CONTRACT; BRCH OF FIDUCIARY DT NASD - CASE # No Settled Disposition Date: 12/01/1997 Disposition Detail: i Reporting Source: Employing firm when activities occurred which led to the complaint: Allegations: Product Type: Alleged Damages: CASE IS CLOSED, SETTLED ** CASE SETTLED ** Broker PRUDENTIAL SECURITIES INCORPORATED CUSTOMER ALLEGES UNAUTHORIZED AND EXCESSIVE TRADING WITH DAMAGES IN EXCESS OF $73, IN CONNECTION WITH THE PURCHASES OF COMMON STOCK IN 1993 AND

32 Customer Complaint Information Date Complaint Received: Complaint Pending? Status: No Arbitration/Reparation Status Date: Settlement Amount: Individual Contribution Amount: Arbitration Information Arbitration/Reparation Claim filed with and Docket/Case No.: Date Notice/Process Served: 05/27/1997 National Assoc. of Securities Dealers; Arbitration Pending? Disposition: No Settled Disposition Date: 12/01/1997 Monetary Compensation Amount: Individual Contribution Amount: $45, Broker Statement PSI SETTLED THIS CASE FOR $45, Not Provided 30

33 Customer Dispute - Closed-No Action/Withdrawn/Dismissed/Denied This type of disclosure event involves (1) a consumer-initiated, investment-related arbitration or civil suit containing allegations of sales practice violations against the individual broker that was dismissed, withdrawn, or denied; or (2) a consumer-initiated, investment-related written complaint containing allegations that the broker engaged in sales practice violations resulting in compensatory damages of at least $5,000, forgery, theft, or misappropriation, or conversion of funds or securities, which was closed without action, withdrawn, or denied. Disclosure 1 of 1 Reporting Source: Employing firm when activities occurred which led to the complaint: Allegations: Product Type: Other Product Type(s): Broker OPPENHEIMER & CO. INC. MISREPRESENTATION OF CLOSED END FUNDS AND CHANGING STOP LOSS ORDERS WITHOUT AUTHORIZATION DURING 3RD QUARTER DAMAGES NOT SPECIFIED BUT BELIEVED TO BE GREATER THEN $5000. Other Alleged Damages: $5, Customer Complaint Information Date Complaint Received: 03/31/2006 Complaint Pending? Status: CLOSED END FUNDS No Status Date: 04/21/2006 Settlement Amount: Individual Contribution Amount: Broker Statement Denied OPPENHEIMER & CO. INC. RESEARCHED THESE ALLEGED CLAIMS AND FOUND NO BASIS OF FACT OR WRONGDOING BY EITHER MR. MARSHALL OR OPPENHEIMER AND CONSIDERS THIS MATTER CLOSED. 31

34 Employment Separation After Allegations This type of disclosure event involves a situation where the broker voluntarily resigned, was discharged, or was permitted to resign after being accused of (1) violating investment-related statutes, regulations, rules or industry standards of conduct; (2) fraud or the wrongful taking of property; or (3) failure to supervise in connection with investment-related statutes, regulations, rules, or industry standards of conduct. Disclosure 1 of 2 Reporting Source: Employer Name: Termination Type: Firm OPPENHEIMER & CO. INC. Discharged Termination Date: 06/24/2008 Allegations: Product Type: Other Product Types: i Reporting Source: Employer Name: Termination Type: MR. MARSHALL WAS DISCHARGED AFTER A CUSTOMER COMPLAINT REVEALED THAT HE HAD TAKEN A LOAN FROM A CLIENT, ENGAGED IN A PRIVATE SECURITIES TRANSACTION WITHOUT THE KNOWLEDGE OF THE FIRM AND VIOLATED FIRM POLICY RE: USE OF S. No Product Broker OPPENHEIMER & CO. Discharged Termination Date: 06/24/2008 Allegations: Product Type: Other Product Types: Broker Statement i Disclosure 2 of 2 CUSTOMER COMPLAINT HE HAD TAKEN A LOAN FROM THE CLIENT, ENGAGED IN A PRIVATE SECURITIES TRANSACTION W/O NOTIFYING THE FIRM AND VIOLATED THE FIRMS POLICY No Product THE ALLEGED ALLEGATIONS REGARDING A LOAN FROM A CLIENT AND A PRIVATE SECURITIES TRANSACTION HAVE MITIGATING CIRCUMSTANCES THAT MR.MARSHALL WILL VIGORIOUSLY RESPOND TO, AS APPROPRIATE. THE CLIENT WAS A BUSINESS PARTNER AND OPPENHEIMER APPROVED THE OUTSIDE BUSINESS ACTIVITY AND RELATIONSHIP. 32

35 Reporting Source: Employer Name: Termination Type: Broker PAINEWEBBER, INC. Discharged Termination Date: 02/04/1991 Allegations: Product Type: Other Product Types: Broker Statement N/A UNAUTHORIZED CUSTOMER SIGNATURES TO TRANSFER MONIES FROM CASH ACCOUNTS TO MONEY MARKET ACCOUNTS. PAINEWEBBER DISCHARGED ME IMMEDIATELY. THERE WAS NO INTENT ON MY PART TO CAUSE ANY CLIENT ANY FINANCIAL DAMAGE OR LOSS AS THEY MONEY MARKET FUND WAS OFFERED FREE OF CHARGE. 33

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