Gerald James OHalloran - FINRA BrokerCheck Report

BrokerCheck Report

GERALD JAMES OHALLORAN
CRD# 1056697
Report #85165-27106, data current as of Tuesday, October 01, 2013.

Section Title

Page(s)

Report Summary

1

Broker Qualifications

2-4

Registration and Employment History

5

Disclosure Events

6

About BrokerCheck®
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former FINRA-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.
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same disclosure events mentioned above.
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www.finra.org/brokercheck

User Guidance

GERALD J. OHALLORAN

Report Summary for this Broker

CRD# 1056697
Currently employed by and registered with the
following FINRA Firm(s):
KOVACK SECURITIES INC.
150 W. MCKENZIE STREET
SUITE 111
PUNTA GORDA, FL 33950
CRD# 44848
Registered with this firm since: 05/07/2004

This report summary provides an overview of the broker's professional background and conduct. Additional
information can be found in the detailed report.

This broker is registered with:
2 Self-Regulatory Organizations
15 U.S. states and territories
Is this broker currently suspended or inactive with
any regulator? No

Disclosure Events
Disclosure events are certain criminal matters;
regulatory actions; civil judicial proceedings; customer
complaints, arbitrations, or civil litigations;
employment terminations; and financial matters in
which the broker has been involved.

This broker has passed:
0 Principal/Supervisory Exams
2 General Industry/Product Exams
1 State Securities Law Exam

Registration History
This broker was previously registered with FINRA at
the following brokerage firms:

Are there events disclosed about this broker? Yes
The following types of disclosures have been
reported:
Type
Count
1
Criminal
Customer Dispute

7

Termination

2

FINANCIAL INVESTMENT ANALYSTS, INC.
CRD# 16010
PITTSBURGH, PA
08/2002 - 05/2004
A. G. EDWARDS & SONS, INC.
CRD# 4
ST. LOUIS, MO
11/1998 - 06/2000
EDWARD D. JONES & CO., L.P.
CRD# 250
ST. LOUIS, MO
02/1992 - 09/1998

©2013 FINRA. All rights reserved.

Report# 85165-27106 about GERALD J. OHALLORAN. Data current as of Tuesday, October 01, 2013.

1


User Guidance

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 registration, and the date on which the registration 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 individual is currently registered with 2 SROs and is licensed in 15 U.S. states and territories through his
or her employer.

Employment 1 of 1
Firm Name:


Main Office Address: 6451 N. FEDERAL HWY.
SUITE 1201
FT. LAUDERDALE, FL 33308
Firm CRD#:
44848
SRO

Category

Status

Date

FINRA

General Securities Representative

APPROVED 05/07/2004

NASDAQ Stock Market

General Securities Representative

APPROVED 07/12/2006

U.S. State/
Territory

Category

Status

Date

U.S. State/
Territory

Category

Status

Date

California

Agent

APPROVED

05/07/2004

Ohio

Agent

APPROVED

01/12/2006

Colorado

Agent

APPROVED

10/24/2008

Pennsylvania

Agent

APPROVED

12/11/2006

Delaware

Agent

APPROVED

01/06/2006

Tennessee

Agent

APPROVED

05/24/2006

Florida

Agent

APPROVED

05/07/2004

Georgia

Agent

APPROVED

10/11/2005

Illinois

Agent

APPROVED

07/29/2005

Maryland

Agent

APPROVED

05/07/2004

Massachusetts

Agent

APPROVED

05/07/2004

Michigan

Agent

APPROVED

10/28/2008

Minnesota

Agent

APPROVED

05/17/2004

New Jersey

Agent

APPROVED

05/06/2013

North Carolina

Agent

APPROVED

05/07/2004



2


User Guidance


Employment 1 of 1, continued
Branch Office Locations
150 W. MCKENZIE STREET
SUITE 111
PUNTA GORDA, FL 33950



3


User Guidance


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 0 principal/supervisory exams, 2 general industry/product exams, and 1 state
securities law exam.

Principal/Supervisory Exams
Exam

Category

Date

Exam

Category

Date

Investment Company Products/Variable Contracts Representative Examination

Series 6

08/20/1982

General Securities Representative Examination

Series 7

01/20/1992

Exam

Category

Date

Uniform Securities Agent State Law Examination

Series 63

08/11/2003

No information reported.

General Industry/Product Exams

State Securities Law Exams

Additional information about the above exams or other exams FINRA administers to brokers and other securities
professionals can be found at www.finra.org/brokerqualifications/registeredrep/.



4


User Guidance

Registration and Employment History
Registration History
This broker previously was registered with FINRA at the following firms:
Registration Dates

Firm Name

CRD#

Branch Location

08/2002 - 05/2004


16010

PITTSBURGH, PA

11/1998 - 06/2000


4

ST. LOUIS, MO

02/1992 - 09/1998


250

ST. LOUIS, MO

08/1982 - 12/1991

UNITED SERVICES PLANNING ASSOCIATION, 3641
INC.

FORT WORTH, TX

Employment History
Below is the broker's employment history for up to the last 10 years.
Please note that the broker is required to provide this information only while registered with FINRA and the
information is not updated 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

05/2004 - Present


FT. LAUDERDALE, FL

01/2002 - Present


CANONSBURG, PA

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.
1) DBA: DAEDALIAN FINANCIAL SERVICES, LLC - OWNER; SECURITIES 90% OF TIME SPENT; LIFE, HEALTH,
ACCIDENT 5% OF TIME SPENT; LIFE INSURANCE 5% OF TIME SPENT; COMPENSATED ON COMMISSIONS.
11/14/11



5


User Guidance

Disclosure Events

What you should know about reported disclosure events:
1. Disclosure events are certain criminal matters; regulatory actions; civil judicial proceedings; customer
complaints, arbitrations, or civil litigations; employment terminations; and financial matters in which the broker
has been involved.
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 report 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 $5,000.
3. 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" disclosure event involves allegations that have not been proven or formally
adjudicated.
§ A disclosure event that is "on appeal" involves allegations that have been adjudicated but are
currently being appealed.
§ A "final" disclosure event has been concluded and its resolution is not subject to change.
o A final disclosure 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 represents a disposition wherein the parties involved in a dispute
reach an agreement 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 includes a disposition wherein no payment is made to the customer
or there is 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 disclosure events can be found in the subsequent pages of this report. You
also may wish to contact the broker to obtain further information regarding the disclosure events.



6


User Guidance

Pending

Final

On Appeal

Criminal

0

1

0

Customer Dispute

2

5

N/A

N/A

2

N/A

Termination



7


User Guidance

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 disclosure event 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.

Criminal - Final Disposition
This type of disclosure event involves a criminal charge against the broker that has resulted in a conviction, acquittal,
dismissal, or plea. The criminal matter may pertain to any felony or certain misdemeanor offenses, including bribery,
perjury, forgery, counterfeiting, extortion, fraud, and wrongful taking of property.
Disclosure 1 of 1
Reporting Source:

Broker

Court Details:

BROOKLINE, MA POLICE DEPT.
NONE

Charge Date:

09/06/1956

Charge Details:

UNAUTHORIZED VEHICLE USE

Felony?

Yes

Current Status:

Final

Status Date:

09/06/1956

Disposition Details:

CHARGES DISMISSED.

Summary:

AS A 17 YR OLD, I WAS INVOLVED WITH THREE OTHERS
IN THE UNAUTHORIZED USE OF A VEHICLE. THESE CHARGES WERE
DISMISSED. THREE YEARS LATER AT AGE 20, I DISCUSSED THE RECORD
WITH THE SAME JUDGE. HE AGREED TO REMOVE THE RECORD SO I
COULD
JOIN THE USAF. DURING THE PAST 35 YRS, I'VE HELD TOP SECRET
CLEARANCES WITHIN THE DOD. THE JUDGE TOLD ME TO ACKNOWLEDGE
ANY RECORD OF THIS.



8


User Guidance

Customer Dispute - Award/Judgment
This type of disclosure event involves a final, consumer-initiated, investment-related arbitration or civil suit containing
allegations of sales practice violations against the broker that resulted in an arbitration award or civil judgment for the
customer.
Disclosure 1 of 1
Reporting Source:

Broker

Employing firm when
activities occurred which led
to the complaint:

KOVACK SECURITIES, INC.

Allegations:

UNAUTHORIZED TRANSACTIONS

Product Type:

Equity - OTC

Other Product Type(s):

BONDS

Alleged Damages:

$64,193.00

Customer Complaint Information
Date Complaint Received:

10/16/2006

Complaint Pending?

No

Status:

Arbitration/Reparation

Status Date:

08/25/2007

Settlement Amount:
Individual Contribution
Amount:

Arbitration Information
Arbitration/Reparation Claim
filed with and Docket/Case
No.:

FINRA #07-01446

Date Notice/Process Served:

08/25/2007

Arbitration Pending?

No

Disposition:

Award to Customer

Disposition Date:

05/21/2008

Monetary Compensation
Amount:

$76,565.08

Amount:

$48,000.00



9


User Guidance

Amount:

$48,000.00

Summary:

[CUSTOMER] WAS PRESENT AND AGREED TO ALL TRANSACTIONS DONE
IN HER ACCOUNT. WHEN THE STOCK WHEN DOWN-SHE CAME IN MONTHS
LATER ASKING ME TO MAKE GOOD FOR THE LOSSES OUT OF MY OWN
POCKET-WHICH I WOULD NOT DO. SHE THREATEN TO SUE AND RUIN MY
REPUTATION IN THE SMALL COMMUNITY.



10


User Guidance

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 3
Reporting Source:

Broker

Employing firm when
to the complaint:

KOVACK SECURITIES, INC.

Allegations:

CUSTOMER ALLEGES UNAUTHORIZED TRADES IN THE ACCOUNT DURING
FEBRUARY 2011. CLIENT DISCOVERED THE TRADES IN MARCH 2011.

Product Type:

Other: REVERSE CONVERTIBLE NOTES

Alleged Damages:

$27,000.00

Alleged Damages Amount
Explanation (if amount not
exact):

APPROXIMATE UNREALIZED LOSS

Is this an oral complaint?

No

Is this a written complaint?

Yes

Is this an arbitration/CFTC
reparation or civil litigation?

No


10/27/2011

Complaint Pending?

No

Status:

Settled

Status Date:

01/03/2012

Settlement Amount:

$14,000.00

Amount:

$14,000.00

i
Disclosure 2 of 3
Reporting Source:


Firm


11


User Guidance

Employing firm when
to the complaint:

A.G. EDWARDS & SONS, INC.

Allegations:

ALLEGES UNUATHORIZED TRANSACTIONS. SEEKS REIMBURSEMENT OF
TRANSACTION. LOSSES IN EXCESS OF $5,000.00

Product Type:

Equity Listed (Common & Preferred Stock)

Alleged Damages:


05/05/2000

Complaint Pending?

No

Status:

Settled

Status Date:

05/24/2000

Settlement Amount:

$8,646.30

Amount:

$0.00

i
Reporting Source:

Broker

Employing firm when
to the complaint:


Allegations:

ALLEGED UNAUTHORIZED TRANSACTIONS. CUSTOMER WAS SEEKING
REIMBURSEMENT OF TRANSCTION LOSSES IN EXCESS OF $5,000 FROM
ONE TRADE. FINAL SETTLEMENT AMOUNTED TO $8,646.30

Product Type:

Equity Listed (Common & Preferred Stock)

Alleged Damages:

$8,646.30


05/05/2000

Complaint Pending?

No

Status:

Settled

Status Date:

05/25/2000

Settlement Amount:

$8,646.30

Amount:

$8,646.30

12


User Guidance

Amount:

$8,646.30

Summary:

BOUGHT 150 SH. S-1 CORP (SONE) 3/29/2000 @ 92 ($13,939). TRADE
CONFIRM REFLECTED S-1 CORP. CLIENT WAS CONFUSED. I REMINDED
HER THAT WAS SAME STOCK WE AGREED ON AS (SONE) SYMBOL. OKAY!
ALMOST DAILY DISCUSSIONS REGARDING ENTIRE PORTFOLIO. MET IN
OFFICE 4/12 & 5/4. REVIEWED ANALYST REPORTS (S & P & GOLDMAN
SACHS). STOCK DOWN WITH HIGH TECH MARKET, BUT SHE WAS HAPPY
WITH FORECAST & AGREED TO KEEP SONE. SELL WHEN LOSS
RECOVERED. CLIENT REACTS TO EVERY TV REPORT. AGAINST OUR
ADVICE, INCLUDING MANAGER, SHE SOLD $15,000 OF MFD, CLASS A
SHARES, OWNED ONLY 2 MONTHS, TO BUY LATEST FAD STOCK.

i
Disclosure 3 of 3
Reporting Source:

Firm

Employing firm when
to the complaint:

EDWARD D. JONES & CO., LP

Allegations:

THE CUSTOMER CLAIMS HE DID NOT AUTHORIZE THE
EX-IR TO LIQUIDATE $250,000.00 TOTAL FROM TWO OF HIS MUTUAL
FUNDS HOLDINGS AND INVEST THE PROCEEDS IN A VARIABLE ANNUITY.
CUSTOMER DEMANDS THAT THE ANNUITY BE LIQUIDATED AND THAT HIS
FUND HOLDINGS BE REINSTATED WITH ANY NECESSARY ADJUSTMENTS
BEING MADE SO HE DOES NOT SUFFER ANY LOSSES AS A RESULT OF
THE
IR'S ACTION.

Product Type:
Alleged Damages:


10/01/1998

Complaint Pending?

No

Status:

Settled

Status Date:

10/22/1998

Settlement Amount:

$9,609.82

Amount:
Summary:


THE CUSTOMER'S ANNUITY WAS LIQUIDATED AND THE
TWO MUTUAL FUNDS HOLDINGS WERE REINSTATED PER THE


13


User Guidance

Summary:

THE CUSTOMER'S ANNUITY WAS LIQUIDATED AND THE
TWO MUTUAL FUNDS HOLDINGS WERE REINSTATED PER THE
CUSTOMER'S
REQUEST, AT NO COST TO THE CUSTOMER. MARKET LOSSES INCURRED
DURING THE TRANSFERS WERE $9,609.82.

i
Reporting Source:

Broker

Employing firm when
to the complaint:


Allegations:

CUSTOMER CLAIMS HE DID NOT AUTHORIZE THE
EX-IR TO LIQUIDATE $250,000 TOTAL FROM TWO OF HIS MUTUAL FUNDS
HOLDINGS AND INVEST THE PROCEEDS IN A VARIABLE ANMITY.
CUSTOMER
WANTS TO EXERCISE HIS FREE LOOK PRIVILEGE, AND PLACE THE
PROCEEDS BACK INTO THE MUTUAL FUNDS WITHOUT ANY LOSS TO HIM.

Product Type:
Alleged Damages:


10/01/1998

Complaint Pending?

No

Status:

Settled

Status Date:

10/22/1998

Settlement Amount:

$9,609.82

Amount:
Summary:


$9,609.82 SETTLEMENT
ON OR ABOUT AUGUST 14TH I CONTACTED THE CUSTOMER.
PART OF OUR DISCUSSION CONCERNED TAXES, HE FELT IT WAS TOO
MUCH. I TOLD HIM WE COULD TAKE HALF OF HIS AMERICAN FUNDS AND
MOVE THEM TO A TAX DEFERRED STATUS USING AMERICAN FUNDS AS
LONG
AS HE HAD NO PLANS TO USE THE MONEY FOR ABOUT TEN YEARS. I
TOLD
HIM THAT THIS WOULD BE AN ANNUITY, AND HE WOULD NEED TO NAME A
BENEFICIARY. HE IS STILL SINGLE SO HE TOLD ME TO NAME HIS TRUST
AS BENEFICIARY. DURING THE LAST WEEK IN SEPTEMBER, THE JONES IR
WHO TOOK OVER MY J. OHALLORAN. Data current as of Tuesday, October 01,
Report# 85165-27106 about GERALDOFFICE, CALLED ME TO VERIFY THAT THE 2013.
CUSTOMER'S TRUST WAS NAMED AS BENEFICIARY. SHE SAID THE

14


User Guidance

AS BENEFICIARY. DURING THE LAST WEEK IN SEPTEMBER, THE JONES IR
WHO TOOK OVER MY OFFICE, CALLED ME TO VERIFY THAT THE
CUSTOMER'S TRUST WAS NAMED AS BENEFICIARY. SHE SAID THE
CUSTOMER HAD TOLD
ME TO DO THAT A MONTH AGO. THIS ANNUITY IS VERY MUCH IN HIS
BEST INTEREST. IT'S UNFORUNATE THAT SOMEONE HAS DISSUADED HIM.



15


User Guidance

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 that was closed without action, withdrawn, or denied.
Disclosure 1 of 1
Reporting Source:

Firm

Employing firm when
to the complaint:
Allegations:

CUSTOMER CLAIMED HE ADVISED EX-IR TO TRANSFER
HIS SECURITIES TO OUR FIRM IN MARCH OF 1998. CUSTOMER THEN
STATES HE WAS ADVISED BY EX-IR IN MAY THAT FUNDS COULD NOT BE
TRANSFERRED AND NEEDED TO BE SOLD TO COMPLETE THE TRANSFER.
HE
CLAIMED HE INSTRUCTED IR (EMPLOYED BY EDWARD JONES) TO
LIQUIDATE THE INVESTMENT AND COMPLETE THE TRANSFER.

Product Type:
Alleged Damages:

$25,000.00


09/16/1998

Complaint Pending?

No

Status:

Closed/No Action

Status Date:

11/02/1998

Settlement Amount:
Amount:
Summary:


CUSTOMER WAS ADVISED THAT EX-IR'S OFFICE MADE
DILIGENT EFFORTS TO COMPLETE THE REQUESTED TRANSFER. THERE
WERE DELAYS IN THE TRANSFER PROCESS THAT WERE UNUSUAL.
HOWEVER
CUSTOMER STATEMENTS INDICATE MONEY THAT WAS RECEIVED INTO
HIS
ACCOUNT WAS INVESTED IN STOCK FUNDS PER CUSTOMERS
INSTRUCTION.
SINCE THESE TRADES DID INDICATE CUSTOMER INTENT TO STAY IN
MARKET CUSTOMER REQUEST THAT HE BE as of Tuesday, October 01, 2013.
Report# 85165-27106 about GERALD J. OHALLORAN. Data current REIMBURSED FOR MARKET
LOSSES

16


User Guidance

SINCE THESE TRADES DID INDICATE CUSTOMER INTENT TO STAY IN
MARKET CUSTOMER REQUEST THAT HE BE REIMBURSED FOR MARKET
LOSSES
RESULTING FROM DELAYED TRANSFER WAS REJECTED.
Not Provided

i
Reporting Source:

Broker

Employing firm when
to the complaint:
Allegations:

CUSTOMER CLAIMED HE ADVISED EX-IR TO TRANSFER
HIS SECURITIES TO JONES IN MARCH OF 1998. CUSTOMER THEN STATES
HE WAS ADVISED BY EX-IR IN MAY THAT FU NDS COULD NOT BE
TRANSFERRED AND NEEDED TO BE SOLD TO COMPLETE TRANSFER. HE
CLAIMED HE INSTRUCTED IR TO LIQUIDATE THE INVESTMENT AND
COMPLETE THE TRANSFER. FUNDS WERE NOT LIQUIDATED UNTIL
SEPTEMBER AND CUSTOMER CLAIMED DELAY RESULTED IN A $25,000
LOSS
AND REQUESTS REIMBURSEMENT.

Product Type:
Alleged Damages:

$25,000.00


09/16/1998

Complaint Pending?

No

Status:

Closed/No Action

Status Date:

11/02/1998

Settlement Amount:
Amount:
Summary:


CUSTOMER WAS ADVISED THAT EX-IRS OFFICE MADE
DILIGENT EFFORTS TO COMPELTE REQUESTED TRANSFER. THERE WERE
DELAYS THAT WERE UNUSUAL. HOWEVER CUSTOMER STATEMENTS
INDICATE
THAT MONEYS RECEIVED INTO HIS ACCOUNT WAS INVESTED IN STOCK
FUNDS PER CUSTOMER INSTRUCTIONS. SINCE THESE TRADES
INDICATED
CUSTOMERS INTENT TO STAY IN MARKET HIS REQUEST THAT HE BE
REIMBURSED WAS REJECTED.
THE COMPANY HOLDING CUSTOMER'S SECURITIES AEGON

17


User Guidance

CUSTOMERS INTENT TO STAY IN MARKET HIS REQUEST THAT HE BE
REIMBURSED WAS REJECTED.
THE COMPANY HOLDING CUSTOMER'S SECURITIES AEGON
WENT OUT OF BUSINESS DURING THE ACAT TRANSFER. INITIALLY
EVERYTHING WAS TRANSFERRED TO JONES. JONES THEN RETURNED
TWO
ASSETS THEY COULD NOT HOLD. DURING THIS TIME THE SECURITIES
WERE TRANSFERRED TO NFSC. MAY SUBSEQUENT ACAT REQUEST TO
LIQUIATE WERE IGNORED. AFTER MANY ATTEMPS AND WITH HELP FROM
CUSTOMER'S FORMER BROKER, WE LOCATED A CONTACT ON AUG 24TH.
CUSTOMER WAS NOTIFED AND THE LIQUDATION INITIATED. MY ASSISANT
WAS ACTIVELY INVOLVED AND COULD PROVIDE SPECIFIC DATES.
AFTERWARD NFSC TOLD US THEY WOULD NOT ACCEPT WRITTEN
REQUEST.
WE DID EVERYTHING WITHIN REASON. CUSTOMER TOLD ME TO
LIQUIDATE
AND ADD PROCEEDS TO HIS MUTUAL FUNDS.



18


User Guidance

Customer Dispute - Pending
This type of disclosure event involves (1) a pending consumer-initiated, investment-related arbitration or civil suit that
contains allegations of sales practice violations against the broker; or (2) a pending, consumer-initiated, investmentrelated 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.
Disclosure 1 of 2
Reporting Source:

Firm

Employing firm when
to the complaint:
Allegations:

CUSTOMER CLAIMS SHE DID NOT AUTHORIZE IR TO
REINVEST THE PROCEEDS OF A $35,000 BOND THAT WAS CALLED WHILE
SHE WAS OUT OF THE COUNTRY. SHE ALSO CLAIMS SHE ADVISED IR
THAT SHE WOULD NEED $75,000 SHE DEPOSITED INTO HER ACCOUNT TO
BUILD A HOME. IR RECOMMENDED SHE INVEST THE $75,000 INTO AN A
NNUITY. CUSTOMER HAS NOW BEEN ADIVSED THERE WILL BE A $4,300
WITHDRAWAL FEE AND TAX BILL IF SHE WITHDRAWS THE MONEY.
WANTS
TO BE MADE WHOLE. ON 12/18/98 A SECOND LETTER WAS RECEIVED
FROM CUSTOMER IN WHICH SHE STATES SHE HAD RECEIVED
INACCURATE
INFORMATION FROM THE INSURANCE COMPANY ABOUT THE ANNUITY.
SHE
INDICATES SHE HAS BEEN ADVISED BY HER CPA THAT THE TAX
INFORMATION SHE RECEIVED WAS NOT CORRECT AND SHE ALSO
BELIEVES
THE WITHDRAWAL FEE ALSO MAY NOT BE RIGHT. INDICATES SHE NOW
WANTS TO LEAVE HER INVESTMENTS INTACT WHILE SHE CONFIRMS THE
INFORMATION.

Product Type:
Alleged Damages:


11/23/1998

Complaint Pending?

Yes

Settlement Amount:
Amount:
Summary:

Not Provided
Not Provided

19


User Guidance

Summary:

Not Provided
Not Provided

i
Reporting Source:

Broker

Employing firm when
to the complaint:
Allegations:

CUSTOMER CLAIMS SHE DID NOT AUTHORIZE IR TO
REINVEST THE PROCEEDS OF A $35,000 BOND THAT WAS CALLED WHILE
SHE WAS OUT OF THE COUNTRY. CUSTOMER ALSO CLAIMS SHE ADVISED
IR
THAT SHE WOULD NEED $75,000 SHE DEPOSITED INTO HER ACCOUNT TO
BUILD A HOME. IR RECOMMENDED SHE INVEST THE $75,000 INTO AN
ANNUITY. CUSTOMER NOW HAS BEEN ADVISED THERE WILL BE A $4300
WITHDRAWAL FEE AND TAX BILL IF SHE WITHDRAWS THE MONEY. WANTS
TO BE MADE WHOLE.

Product Type:
Alleged Damages:


11/23/1998

Complaint Pending?

Yes

Settlement Amount:
Amount:
Summary:


IN MAY 1997 HER ESTIMATED COST OF HER REMODELING
WAS $25K-$35K. SINCE THIS MUCH WAS AVAILABLE I SUGGESTED
INVESTING THE $75,000 IN HER ANNUITY FOR HER RETIREMENT. SHE
AGREED. SHE ALSO SAID SHE HAD OTHER MONEY SHE COULD ALSO USE
FOR REMODELING. IN APRIL, 1998, I TOLD HER THAT HER BOND MAY BE
CALLED IN MAY. WE AGREED TO FIND ANOTHER WITH HALF, KEEP $5000
IN MM, AND ADD THE REMAINDER TO HER EXISTING ICA FUND. SHE WAS
PLEASED WITH THE RESULTS WHEN WE REVIEWED HER ACCOUNT EARLY
AUGUST 1998. HER PENALTY TO WITHDRAW $75,000 FROM HER ANNUITY
IS $2775, NOT THE AMOUNT SHE WAS ADVISED. IF SHE USES HER BOND,
ICA AND MM AS PLANNED ($45,000) HER PENALTY TO W/D THE
DIFFERENCE WOULD BE $300. DEC 18, CUSTOMER NOTIFIED JONES
TO LEAVE HER ACCT AS INVESTED, SHE'S USING OTHER MONEY FOR THE
REMODELING. HER $75,000 INCREASED TO $105,000+, A 40% INCREASE.

20


User Guidance

i
Disclosure 2 of 2
Reporting Source:

Firm

Employing firm when
to the complaint:


Allegations:

CUSTOMER CLAIMS THAT IR WHILE EMPLOYED BY
EDWARD JONES ENTERED ORDERS TO PURCHASE MUTUAL FUNDS IN
HER
ACCOUNT WITHOUT HER AUTHORIZATION. ALSO CLAIMS IR ADVISED HER
THERE WOULD BE NO UPFRONT CHARGES OR COMMISSION FEES WHEN
SHE
REINVESTED HER PORTFOLIO. UPSET WITH THE OVER $20,000.00 IN
UNREALIZED LOSSES ON HER INVESTMENTS. REQUESTS ASSISTANCE
WITH
NO AMOUNT MENTIONED.

Product Type:
Alleged Damages:


09/28/1998

Complaint Pending?

Yes

Status:

Denied

Status Date:

11/03/1998

Settlement Amount:
Amount:
Summary:


IR CLAIMS HE DISCUSSED THE MUTUAL FUNDS WITH THE
CUSTOMER AND PROVIDED HER WITH PROSPECTUSES PRIOR TO THE
INVESTMENT BEING MADE. THE DISCUSSION INCLUDED A DESCRIPTION
OF THE COMMISSION. IR CLAIMS HE FOLLOWED THE CUSTOMERS
INSTRUCTIONS WHEN THE MONEY WAS ACCEPTED INTO THE ACCOUNT.
ALSO
CLAIMS CUSTOMER'S HUSBAND CALLED ON CUSTOMER BEHALF TO
CONFIRM
INVESTMENTS WERE MADE. CUSTOMER RECEIVED CONFIRMS BUT DID
NOT
COMPLAIN UNTIL AFTER THE MARKET DROPPED. CLAIM DENIED.

21


User Guidance

COMPLAIN UNTIL AFTER THE MARKET DROPPED. CLAIM DENIED.

i
Reporting Source:

Broker

Employing firm when
to the complaint:


Allegations:

CUSTOMER CLAIMS THAT IR ENTERED ORDERS TO
PURCHASE MUTUAL FUNDS IN HER ACCOUNT WITHOUT HER
AUTHORIZATION.
ALSO CLAIMS IR ADVISED HER THERE WOULD BE NO FRONT CHARGES
OR
COMMISSION FEES WHEN SHE REINVESTER HER PORTFOLIO. UPSET
WITH
OVER $20,000 UNREALIZED LOSSES DOWN TO $150,000 ON AUGUST 1998
STATEMENT

Product Type:
Alleged Damages:


09/28/1998

Complaint Pending?

Yes

Status:

Denied

Status Date:

11/03/1998

Settlement Amount:
Amount:
Summary:


IR CLAIMS HE DISCUSSED THE MUTUAL FUNDS WITH THE
CUSTOMER AND PROVIDED HER WITH PROSPECTUSES PRIOR TO THE
INVESTMENT BEING MADE. THE DISCUSSION INCLUDED A DESCRIPTION
OF THE COMMISSIONS. IR CLAIMS HE FOLLOWED CUSTOMERS
INSTRUCTIONS. ALSO CLAIMS HER HUSBAND CALLED ON HER BEHALF TO
CONFIRM INVESTMNENTS WERE MADE. CUSTOMER RECEIVED
CONFIRMS BUT
DID NOT COMPLAIN UNITL AFTER THE MARKET DROPPED. CLAIM DENIED
I HAVE NO ACCESS TO THE CLIENTS OR HER RECORDS.
I CONTACTED GREAT AMERICAN. THEY SAID THERE WOULD BE NO
PENALTY
TO TRANSFER HER IRS. THE CUSTOMER MAY BE REFERRING TO THE
TAXES
THAT WERE REQUIRED TO BE WITHHELD ON HER TSA (SHES OVER 701/2).

22


User Guidance

TO TRANSFER HER IRS. THE CUSTOMER MAY BE REFERRING TO THE
TAXES
THAT WERE REQUIRED TO BE WITHHELD ON HER TSA (SHES OVER 701/2).
WE DID DUSCUSS THE UP FRONT FEES OF A VARIABLE ANNUITY. I ALSO
EXPLAINED THE INDIVDUAL FUND FEES AND THE RECUDED ANNUAL
EXPENSES COMPARED TO AN ANNUITY. WE AGREED TO THIS STRATEGY
AND THE FUNDS. I REVIEWED THE BROCHURES AND THE PROSPECTUS
WITH
THEM BOTH THEY WENT NORTH. SEVERAL MONTHS LATER THE
CUSTOMERS CALLED TO TELL ME ABOUT HER PENDING SURGERIES TO
INSURE THAT
THE FUNDS TRANSFERRED AND INVESTED, AND TO CONFIRM THE
BENEFICIARY. USING FUNDS VS ANNUITY MY COMMISSION IS RECUDED
BY
ABOUT 1/3.



23


User Guidance

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 allegations were made that accused the broker 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:

Broker

Employer Name:


Termination Type:

Permitted to Resign

Termination Date:

05/05/2000

Allegations:

IMPROPER HANDLING OF CUSTOMER COMMUNICATION.

Product Type:

Equity - OTC

Other Product Types:
Summary:

CLIENT LETTER NOT GIVEN TO MANAGER. THE LETTER CONFIRMED AN
ADJUSTMENT TO HER ACCOUNT. MY SHARED ASSISTANT HANDED ME
THE LETTER THURSDAY, MAY 11, 2000, A SHORT TIME PRIOR TO MY
LEAVING THE OFFICE FOR A 4-DAY ROTARY CONFERENCE. I ASSUMED
SHE GAVE A COPY TO THE MANAGER AS THAT WAS THE ESTABLISHED
PROCEDURE. I SHOULD HAVE ASSUMED THIS RESPONSIBILITY MYSELF.

i
Disclosure 2 of 2
Reporting Source:

Broker

Employer Name:


Termination Type:

Discharged

Termination Date:

09/01/1998

Allegations:

UNAPPROVED USE OF COMMUNICATIONS WITH THE
PUBLIC AND FAILURE TO COMPY WITH RECORD KEEPING
REQUIREMENTS.

Product Type:

Debt - Corporate

Other Product Types:
Summary:


UNANNOUNCED JONES AUDIT, UNSAT. TRADE CONFIRMS RETAINED IN
TWO CLIENT FILES AT CLIENT REQUEST FOR THEM TO PICK UP LATER.
MY ASST. FAX'D FUND COST BASIS W/O DISCLAMER, AND FUND INFO FOR
INTERNAL USE ONLY. I INCORRECTLY USED ONE KEY STROKE AND
SELECTED WRONG FUND INFO. CLIENT HAD REC'D
PROSPECTUS THE DAY BEFORE. SENT BOND INVENTORY TO CLEINT.

24


User Guidance

SELECTED WRONG FUND INFO. CLIENT HAD REC'D
PROSPECTUS THE DAY BEFORE. SENT BOND INVENTORY TO CLEINT.
COMPANY LATER CHANGED COMPUTER TO INT. USE ONLY. OLD,
CANCELLED ANNUITIES RETAINED IN CLIENT FILE. ADV. RECEIPTS NOT
AVAIL. THEY WERE IN OFFICE, BUT IT WAS PART-TIME EMPLOYEES DAY
OFF, AND INSPECTOR COULD NOT LOCATE. JONES HAS ALL ONE-BROKER
OFFICES AND SUPEVISION CONDUCTED FROM MO. FIRM DISCOVERED I
RECEIVED A TRANSFER PROPOSAL, WITH LARGE BONUS, TO COMPETING
FIRM.



25


User Guidance

End of Report

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26

Gerald James OHalloran - FINRA BrokerCheck Report

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