Financial Industry Regulatory Authority

Financial Industry Regulatory Authority January 20, 2010 Harry P Susman, Esq. y LLP Houston, TX 77002 Subject: FINRA Dispute Resolution Arbitration Number 09-00979 Financial Trust Company, Inc. and The C.O.U.Q. Foundation, Inc. v. Warren Spector Dear Mr. Susman: Pursuant to the Code of Arbitration Procedure, your case is ready for the appointment of Arbitrators. Please be advised that the Securities and Exchange Commission (SEC) has approved the Codes of Arbitration Procedure for Customer (Customer Code) and Industry (Industry Code) disputes. The Customer and Industry Codes became effective on April 16, 2007 and apply to all claims filed on or after the effective date. Please note that the list selection provisions of the new Customer or Industry Codes apply to claims filed prior to the effective date in which a list of Arbitrators has not yet been generated and sent to the parties, or in which an entirely new list of Arbitrators must be generated. In cases where a new list must be generated, even though the list has been generated under the new Customer or Industry Codes, the claim will continue to be governed by the remaining provisions of the old Code of Arbitration Procedure (Old Code), unless all parties agree to proceed under the new Customer or Industry Codes. A brief summary of the rules pertaining to Arbitrator selection is below. The Code of Arbitration Procedure' provides that FINRA Dispute Resolution will send to the parties a list of Arbitrators within 30 days after the last answer is due. The enclosed Arbitrator list(s) for the above-referenced case are sent in accordance with the applicable new Code. In addition to the Arbitrator lists, also enclosed is each Arbitrators Arbitrator Disclosure Report for your review. The Arbitrator Disclosure Reports include each Arbitrators past NASD and FINRA awards. NYSE awards are not currently listed on the Arbitrator Disclosure Reports. However, the Arbitrator's NASD, FINRA, and NYSE awards, if any, are available through our online award database at www.finra.org/arbitrationmediation/index.htm. Panel Composition 'Customer Code Rule 12403(b) Industry Code Rule 13403(b) Investor protection. Market integrity. Dispute Resolution One Liberty Plaza t Northeast Regional Office wwwfinra org New York. NV 10006-1404 EFTA00726318 1. Single Arbitrator Cases Where the amount in controversy is $100,000 or less, the Code of Arbitration Procedure 2 requires that one Arbitrator hear the case, unless all parties agree otherwise in writing. In single Arbitrator cases, FINRA Dispute Resolution will send the following lists to all parties, depending on the type of claim. A. For all Public Customer Cases and any Intra-Industry Claims Brought Under Industry Code Rule 13402031 In accordance with the Code of Arbitration Procedure,' a single public Arbitrator will be appointed from the public Chairperson roster. FINRA Dispute Resolution will send each party a list containing eight public Chairperson names. In accordance with the Code of Arbitration Procedure,' each separately represented party may strike up to four of the arbitrators from the list by crossing through the names of the Arbitrators. At least four names must remain on the list. If an Arbitrator on the parties' consolidated list is not available to fill the slot on the Panel, the Director will appoint the next available Arbitrator. B. For Infra-Industry Claims Brought Under Industry Code Rule 13402(a) In accordance with the Code of Arbitration Procedure, 5 a single non-public Arbitrator will be appointed from the non-public Chairperson roster. FINRA Dispute Resolution will send each party a list containing eight non-public Chairperson names. In accordance with the Code of Arbitration Procedure, ° each separately represented party may strike up to four of the Arbitrators from the list by crossing through the names of the Arbitrators. At least four names must remain on the list. If an Arbitrator on the parties' consolidated list is not available to fill the slot on the Panel, the Director will appoint the next available Arbitrator. 2. Three Arbitrator Cases Where the amount in controversy is more than $100,000, or the claim is for unspecified or non-monetary damages, the Code of Arbitration Procedure' requires that three Arbitrators hear the case. 2Customer Code Rules 12401(a) and 12401(b) Industry Code Rules 13401(a) and 13401(b) 'Customer Code Rule 12403(a)(1) Industry Code Rule 13403(b) 'Customer Code Rule 12404 Industry Code Rule 13404(a) 5lndustry Code Rule 13403(a) °Industry Code Rule 13404(a) 'Customer Code Rule 12401(c) EFTA00726319 In these cases, FINRA Dispute Resolution will send the following lists to all parties, depending on the type of claim. A. For all Public Customer Cases and any Infra-Industry Claims Brought Under Industry Code Rule 13402(b) In accordance with the Code of Arbitration Procedure, 8 FINRA Dispute Resolution will send three lists of Arbitrators to the parties. Each list will contain eight names. One list will contain eight names from the public Chairperson roster, another list will contain eight names from the public roster, and the last list will contain eight names from the non-public roster. In accordance with the Code of Arbitration Procedure, 8 each separately represented party may strike up to four of the Arbitrators from each list by crossing through the names of the Arbitrators. At least four names must remain on each list. If an Arbitrator on the parties' consolidated list is not available to fill the slot on the panel, the Director will appoint the next available Arbitrator. B. For Infra-Industry Claims Brought Under Industry Code Rule 13402(a) In accordance with the Code of Arbitration Procedure, 10 FINRA Dispute Resolution will send two lists of Arbitrators to the parties. One list will contain eight Arbitrators from the non-public Chairperson roster; the other list will contain sixteen arbitrators from the non-public roster. In accordance with, the Code of Arbitration Procedure," each separately represented party may strike up to four of the Arbitrators on the list containing eight names, and eight of the Arbitrators on the list containing sixteen names. At least four names must remain on the list containing eight names, and at least eight names must remain on the list containing sixteen names. If an Arbitrator on the list is not available to fill the slot on the Panel, the Director will appoint the next available Arbitrator. 3. Cases Involving Statutory Employment Discrimination The Code of Arbitration Procedure 72 requires that public Arbitrators hear all cases involving statutory employment discrimination claims. In such cases, where the amount in controversy is $100,000 or less, a single public Arbitrator will be appointed. Where the amount in controversy is more than $100,000, three public Industry Code Rule 13401(c) 8Customer Code Rule 12403(a)(2) Industry Code Rule 13403(b)(2) °Customer Code Rule 12404 Industry Code Rule 13404(a) wIndustry Code Rule 13403(a)(2) "Industry Code Rule 13404 12lndustry Code Rule 13802(c) EFTA00726320 Arbitrators will be appointed. In accordance with the Code of Arbitration Procedure," a single Arbitrator or Chairperson of a three-Arbitrator Panel in a case involving a statutory employment discrimination claim will be appointed from a public roster of Arbitrators with special statutory discrimination qualifications. The procedures to strike and rank Arbitrators in a statutory discrimination claim remain the same as the striking and ranking procedures in all public customer and intra- industry cases as mentioned above. A. Single Arbitrator Case FINRA Dispute Resolution will send each party a list containing eight public Chairperson names with special statutory employment discrimination qualifications. Each separately represented party may strike up to four of the Arbitrators from the list by crossing through the names of the Arbitrators. At least four names must remain on the list. If an Arbitrator on the parties' consolidated list is not available to fill the slot on the Panel, the Director will appoint the next available Arbitrator. Three Arbitrator Panel FINRA Dispute Resolution will send two lists of Arbitrators to the parties. One list will contain eight Arbitrators with special statutory employment discrimination qualifications from the public Chairperson roster, the other list will contain sixteen Arbitrators from the public roster. Each separately represented party may strike up to four of the Arbitrators on the list containing eight names, and eight of the Arbitrators on the list containing sixteen names. At least four names must remain on the list containing eight names, and at least eight names must remain on the list containing sixteen names. If an Arbitrator on the list is not available to fill the slot on the Panel, the Director will appoint the next available Arbitrator. 4. Cases Involving Promissory Notes Only The Code of Arbitration Procedure" requires that a single public Arbitrator with special statutory discrimination qualifications hear all cases in which the sole allegation is money owed on a promissory note. If the associated person files a Counterclaim or Third/Party Claim for over $100,000, the Code of Arbitration Procedure requires a three-Arbitrator Panel. The procedures to strike and rank Arbitrators in a promissory note claim remain the same as the striking and ranking procedures in all public customer and intra-industry cases as mentioned above. A. Single Arbitrator Case FINRA Dispute Resolution will send each party a list containing eight public Chairperson names with special statutory employment discrimination qualifications. Each separately represented party may strike up to four of the Arbitrators from the list by crossing through the names of the Arbitrators. At least four names must remain on the list. If an Arbitrator on the parties' consolidated list is "Industry Code Rule 13802(c)(3) "Industry Code Rule 13806 EFTA00726321 not available to fill the slot on the Panel, the Director will appoint the next available Arbitrator. B. Three Arbitrator Panel FINRA Dispute Resolution will send three lists of Arbitrators to the parties. One list will contain eight Arbitrators with special statutory employment discrimination qualifications from the public Chairperson roster, another list will contain eight names from the public roster, and the last list will contain eight names from the non-public roster. Each separately represented party may strike up to four of the Arbitrators from each list by crossing through the names of the Arbitrators. At least four names must remain on each list. If an Arbitrator on the parties' consolidated list is not available to fill the slot on the panel, the Director will appoint the next available Arbitrator. Arbitrator Ranking Form Each Arbitrator's classification as a public or a non-public Arbitrator is accurate at the time of his or her selection to the list. As noted above, parties have limited strikes to eliminate Arbitrators. Each separately represented party may strike through or cross out Arbitrators on each list for any reason. If a party does not strike through or cross out an Arbitrator's name, the Arbitrator will be deemed acceptable. After striking Arbitrators from each list, each separately represented party may rank the remaining Arbitrators on each list. Parties should rank the remaining Arbitrators on each list by assigning each remaining Arbitrator a different numerical ranking, with 1 as the highest ranking. FINRA Dispute Resolution will consolidate the parties' rankings and, in consolidated rank order, contact Arbitrators on each consolidated list for appointment to the Panel. Arbitrator Ranking Form Due Date Please sign and return the list to our office so that we receive it on or before February 9, 2010. If we do not have your list on or before the return date, you will be deemed to have accepted all Arbitrators on the list Parties may, but are not required to, send a copy of their lists to the opposing parties. After the return date has passed, we will consolidate the parties' lists and inform you of the Arbitrator(s) appointed to the Panel. Arbitrator Ranking Form Due Date and Requests for Additional Disclosures Parties may request additional information from prospective arbitrators. FINRA Dispute Resolution will expedite delivery of a party's request for additional information to the arbitrator, and the arbitrator's response to the parties. If an arbitrator does not respond to a request for additional information, FINRA Dispute Resolution will notify the parties. Product Related Requests Received by FINRA Dispute Resolution within 10 Days The Arbitrator Ranking Form due date will be extended in cases where FINRA Dispute Resolution receives a party's request for additional product related information within 10 days from the date this office sent the form to the parties. The parties will have 20 days from the date FINRA Dispute Resolution receives the party's request for additional information to submit the Arbitrator Ranking Form. This office will notify the parties of the new Arbitrator Ranking Form due date. Product Related Requests Received by FINRA Dispute Resolution after 10 Days and all Other Requests for Additional Information The Arbitrator Ranking Form due date will not be extended in cases where FINRA Dispute Resolution receives a party's request for additional product related information more than EFTA00726322 10 days after the date this office sent the form to the parties. In addition, the Arbitrator Ranking Form due date will not be extended in cases where parties request non-product related information. In these cases, the Arbitrator Ranking Form will be due on the date listed in the above titled section "Arbitrator Ranking Form Due Date." Motions15 Motion practice (other than motions to dismiss, as noted below) is governed by Customer and Industry Code Rules 12503 and 13503, respectively. Responding to Motions Parties have 10 days from the receipt of a written motion to respond to the motion, unless the moving party agrees to an extension of time, or the Director or the Panel decides otherwise. Responses to written motions must be served directly on each other party, at the same time and in the same manner. Responses to written motions must also be filed with the Director, with additional copies for each Arbitrator, at the same time and in the same manner in which they are served on the parties. Motions Filed Prior to the Initial Pre-hearing Conference If a party files a motion before the Initial Pre-hearing Conference, FINRA Dispute Resolution will transmit the motion and any responses to the Panel in accordance with the Code of Arbitration Procedure 12503 and 13503. If the motion is not forwarded to the Panel before the initial pre-hearing conference, the moving party may raise the issue with the Panel at the conference and ask the Panel to establish a schedule for responding to the motion. Motions to Dismiss FINRA Dispute Resolution has adopted Customer Code Rule 12504 and Industry Code Rule 13504 to establish specific procedures that will govern motions to dismiss. FINRA also amended the dismissal provisions of Rules 12206 and 13206 (the eligibility rule) related to time limits on submissions of arbitration claims. The rules will ensure that parties have their claims heard in arbitration, by significantly limiting motions to dismiss filed prior to the conclusion of a party's case-in-chief and by imposing stringent sanctions against parties for engaging in abusive practices under the rules. The effective date of the new rules is February 23, 2009. The new rules will apply to motions to dismiss filed on or after the effective date. For more information, please review Regulatory Notice 09-07 and the Frequently Asked Questions document we published on our Web site, www.finra.org. Is For questions about motion practice under the Old Code, please contact your case administrator. EFTA00726323 Please contact our office if you have any questions. Very truly yours, Nicole C. C. Haynes Case Assi tant Mana er Phone: NClaidr: RECIPIENTS: Gabrielle Gould, Esq., Bear Stearns Kramer Levin Naftalis & Fankel LLP, , New York, NY 10036 Gabrielle Gould, Esq., Bear Stearns n m In . Kramer Levin Naftalis & Fankel LLP, New York, NY 10036 Gabrielle Gould, Esq., The Bear SteAggSraga Kramer Levin Naftalis & Fankel LLP, New York, NY 10036 Harry P Susman, Esq., Susman Godfrey LLP, Harry P Susman, Esq. Susman Godfrey LLP, nc. Houston, TX 77002 Inc. , Houston, TX 77002 Meredith L. Turner, Esq., Warre Wachtel, Lipton, Rosen & Katz, iliaM, New York, NY 10019-6150 EFTA00726324 INITIAL PRE-HEARING CONFERENCE SCHEDULING CALENDAR CASE NUMBER: 09-00979 March-April 2010 Monday Tuesday Wednesday Thursday Friday 22 23 24 25 26 29 30 31 1 Please review the above two (2) week calendar, confer with the other party(ies) and provide FINRA with four (4) mutually agreeable dates and times when all parties are available to schedule an initial pre-hearing telephonic conference (IPHC). If the parties are unable to find four (4) mutually agreeable dates during this two-week period, kindly provide dates in the subsequent weeks. The parties have conferred and propose the following dates for scheduling the IPHC: 1. 2. 3. 4. * Please make sure you speck the hours of availability for each date provided 6e. 10/18/04 between 9:00 a.m. and 2:00 p.m.) You have on or before February 9, 2010 to reply to FINRA with your availability for the initial pre-hearing telephonic conference. Please keep your potential dates and times available in the meantime. We will advise you of the actual initial pre-hearing telephonic conference date and time under separate cover. If the parties fail to provide mutually agreeable dates and times by the due date, this office will schedule the initial pre-hearing telephonic conference based on the arbitrators' availability and the parties will have to provide mutually agreeable alternate dates in order to reschedule the conference call. EFTA00726325 FINRA Dispute Resolution Case ID: 09-00979 Public Chairpersons Arbitrator ID ARBITRATOR RANKING FORM Case Name: Financial Trust Company, Inc. and The C.O.U.Q. Foundation, Inc. v. Warren Spector Arbitrator Name Party Ranking/Struck Leona Beane Richard Herzfeld Howard Weitz Irwin Kahn Zuhayr Moghrabi Richard Weinberger David Goldblatt Mitchell Friedman Public Arbitrators Arbitrator ID Arbitrator Name Dora Lassinger Harold Webb Richard Dannenberg Pamela Roderick Alice Lee-Getman John Kennedy Peter Trinkle Edward Toptani Non-Public Arbitrators Arbitrator ID Arbitrator Name Mark Egert James Berliner • Brian Neville Andrew Donovan Antonio Concepcion R. Garley Larry Befeler Kevin Naughten Party Ranking/Struck Party Ranking/Struck Limited strikes are permitted for each group of Arbitrators. Please refer to the Code of Arbitration Procedure or the cover letter that accompanied the Arbitrator Ranking Sheet for specific instructions. Claimant/Respondent: Submitted By: on behalf of: Signed: Staff ID: LeeC Please Print Name Page 1 of 75 Publicly Available Awards Section. Current as of 01/20/2010 EFTA00726326 FINRA Dispute Resolution Arbitrator ID: Arbitrator Disclosure Report Report reflects information provided by the arbitrator through 01(152010 Name: Ms. Leona Beane Arbitrator ID: CRD #: City/State/Country: New York / NY / United States Classification: FINRA Mediator: Chair Status: Qualified Public No ARBITRATOR Skills In Controversy: There are no skills in controversy information. Skills in Securities: There are no skills in security information. Start Date 01/1984 09/1978 End Date Present 12/1999 EMPLOYMENT Firm Leona Beane Baruch College C.U.N.Y. Position Attorney Professor of Law Start Date 09/1964 09/1962 09/1959 09/1955 End Date 05/1968 05/1964 05/1962 05/1958 EDUCATION School New York Law School Columbia University City College City College Decree JD MS MBA BBA TRAINING Completed Description Details Firm/School Hours Location 02/8008 Mediation Training Creating Settlement Federal District Court 2 Brooklyn, NY 06/2009 Expungement - 2008 Opportunities at Pre-Mediation Eastern District FINRA 1 Refresher 10/2008 Non-Securities Related Arbitration MA 5 New York, NY Training 10/2008 Additional Securities New FINRA Pilot Fordham Law School 1 New York, NY Training 06/2008 Mediation Training Decision Tree Analyis for Mediation Dispute Resolution Institute 13 Durham, NC 05/2008 Mediation Training New Horizons in Mediation Network of 8 Durham, NC Conflict Resolution North Carolina 04/2008 Mediation Training Advanced Mediation NYS Judical 8 White Plains, NY Training Institute-OCA 05/2007 Non-Securities Related Arbitration Update N.Y.C.L.A. 3 New York, NY 04/2007 Training Revised Code of NASD 2 online Arbitration Staff ID: LeeC Page 2 of 75 Publicly Available Awards Section, Current as of 01/20/2010 EFTA00726327 FINRA Dispute Resolution Arbitrator ID: 06/2006 Mediation Training Securities Arbitration CLE Program 3 New York, NY & Mediation Securities Arb/Med-Hot Topic 06/2006 Mediation Training Update for Mediators Superior Court 4 Newark, NJ 05/2006 Non-Securities Related Commercial 3 New York, NY Training Arbitration 05/2006 Mediation Training Advanced Mediation NYS Office of Court 4 New York, NY Training Admin. 01/2006 Mediation Training Court Ordered Mediation, Inc. 40 Chapel Hill, NC Mediation Training 09/2005 Non-Securities Related Employment Law 3 New York, NY Training Essentials 06/2005 Additional Securities Hot Topics Securities 3 New York, NY Training Arb/Med 05/2005 Additional Securities NYSE 3 New York, NY Training 03/2005 Mediation Training NASD New York, NY 03/2005 Mediation Training Bankruptcy Court 24 New York, NY ABRAMS/Negotiation 01/2005 Non-Securities Related Ethical Dilemas in 3 New York, NY Training ADR 01/2005 Mediation Training EEOC 16 New York, NY 12/2004 Expungement online mini-course NASD 1.5 (online) 11/2004 Mediation Training Mediation in 3 New York, NY Bankruptcy 10/2004 Mediation Training NJ Assoc. of 6 New Jersey Professional Mediators 08/2004 Mediation Training New Jersey Superior 4 Newark, NJ Court 06/2004 Mediation Training CLE Program Hot 3 New York, NY Topics Securities Arb 05/2004 Mediation Training Center for Mediation 36 N.Y.S. In Law 03/2004 Mediation Training Custody & Visitation 16 New York, NY Mediation 02/2004 Mediation Training Family & Divorce 40 New York, NY Mediation 01/2004 Additional Securities Arbitration Practicing Commercial 3 New York, NY Training Arbitration 06/2003 Mediation Training NYCLA Effective Med. 3 New York, NY Advocacy 05/2003 Additional Securities NYSE 3 New York, NY Training 02/2003 Mediation Training John Jay 14 New York, NY College/Basic Model 10/2002 Additional Securities NYSE 3 New York, NY Training 09/2002 Mediation Training Columbia Law School 25 New York, NY 03/2002 New Chairperson NASD 11 New York, NY Training [NASD) 02/2002 Non-Securities Related ABA Dispute 7.5 Philadelphia, PA Training Resolution 01/2002 Non-Securities Related NY State Bar Assn - 3 New York, NY Training Alternative D. R. Staff ID: LeeC Pape 3 of 75 Publicly Available Awards Section, Current as of 01/20/2010 EFTA00726328 FINRA Dispute Resolution Arbitrator ID: 12/2001 New Panel Member NASD 11 New York, NY Training [NASD] 06/2001 Mediation Training Mediation Training in Center for Social 20 Ann Arbor, MI 06/2001 Additional Securities Guardianship Gerontology Mediation NYCLA ADR 6 New York, NY 03/2001 Training Mediation Training Essential Skills in Arb. ABCNY/JAMS Conflict 27 New York, NY 01/2001 Non-Securities Related Resolution. Workshop NYSBA - Alternative 3 New York, NY 06/1999 Training Mediation Training Dispute Resolution NYCLA 24 New York, NY 04/1999 Additional Securities Mediation/Commercial NYCLA Securities 1.5 New York, NY 06/1997 Training Mediation Training Arbitration Supreme Court 3 New York, NY 03/1993 Additional Securities NYC/JAMS Med. Workshop AAA Securities 3 New York, NY 09/1992 Training Non-Securities Related Arbitration Training AM Advanced 3 New York, NY 09/1992 Training Non-Securities Related Arbitration Training AAA Basic Arbitrator 3 New York, NY Training Training DISCLOSURE/CONFLICT INFORMATION Type Has an account with I am a client of Has published Was Arbitrator for Is a Member of Bar Association Is a member of Has published Mediator for Had an account with Had an account with Had an account with Had an account with Mediator for Arbitrator for Is a member of Is a member of Licensed to Practice Law in Is a member of Is a member of Arbitrator for Mediator for Staff ID: LeeC Firm Name UBS Financial Services Inc. Wechsler and Cohen "Mat Is Mediation and How Does It Work?" AAA American Bar Association American Judges Association Deskbook, NYSBA 2008 E.E.O.C. Gruntal & Co., L.L.C. J. B. Hanauer & Company Janney Montgomery Scott LLC Merrill Lynch Pierce Fenner & Smith N.C. Dispute Resolution Commission NY County Lawyers Association NY County Lawyers Assn. NY Womens Bar Association NYS Federal Court National Academy of Elder Law Attorneys National Association of Women Lawyers National Futures Association New Jersey Superior Court Page 4 of 75 Details PaineWebber Article 10/29/2007 Dispute Resolution Section Chapter 26, Mediation (New York Lawyers) Ryan Beck & Co. Certified Attorney Fee Disputes Chair, ArbJ ADR Committee (4 yrs) Co-Chair, Trusts & Estates Southern & Eastern District Former President Publicly Available Awards Current as of 01/20/2010 EFTA00726329 FINRA Dispute Resolution Arbitrator ID: Mediator for New York County Lawyers Association Attorney Fee Dispute Is a member of New York County Lawyers Association Is a Member of Bar Association New York State Dispute Resolution Section, Vice Chair Was Arbitrator for New York Stock Exchange Mediator for Safe Horizon Had an account with Scudder Investments Arbitrator for Small Claims Court Mediator for Supreme Court NY Commercial Division Arbitrator for Supreme Court-Commercial Division (ADR Neutral) Has an account with TIAA-CREF Arbitrator for U. S. District Court Eastern District Mediator for U. S. District Court Eastern District Mediator for US Bankruptcy Court, Eastern & Southem Districts Licensed to Practice Law in US Supreme Court Has an account with Wachovia Bank Small Checking account Had an account with Wexford Clearing Services, LLC Has published "Powers of Attorney" article (8/23/02) Lectured on "Talk Can Work" Mediation Pgm (10/21/04), NY, NY Lectured for American Bar Assn- Partnership/Corporations Has published Article: Fiduciary Relationship of a Partner Has published Article: Forged Endorsement by Drawers Attorney Has published Article: Guardian Proceedings in NY State Has published Article: Infant as a Member of Partnership Has published Article: Interference w/Competitors Employees Has published Article: Mediation Contested Guardianships (6/02) Has published Article: Nuts and Bolts of Partnerships & Corp. Has published Article: Rights of Drawers, Banks & Holders Has published Article: Rules Relating to Formation of Contracts Has published Article: Terminating An Agent's Authority Has published Article:Partial Pay Exception/ UCC Sale of Goods Lectured for Assn of the Bar of the City of NY Has published Book: Essentials of Corporation Law Staff ID: LeeC Pape 5 of 75 Publicly Available Awards Section. Current as of 01/20/2010 EFTA00726330 FINRA Dispute Resolution Arbitrator ID: Has published Book: Essentials of Partnership Law Has published Book: Materials in the Law of Business Contracts Has published Corporate Practice Handbook 2 Chapters NYSBA Has published Corporate and Partnership Law (chapter) NYSBA Has published Guardians and Guardians Ad Litem (article) Has published Guardianship Practice in NY (Chapters) & Assn. Ed Has published Guardianship: Challenging, Frustrating(article) Lectured on NY County Lawyers Assn.-Mediation in Bankruptcy Lectured on NY County Lawyers Association-Med. Advocacy skills Lectured on New York County Lawyers Association -Guardianship Licensed to Practice Law in New York State Lectured on New York State Bar-Ethical Dilemmas in ADR PUBLICLY AVAILABLE AWARDS Publicly Available Awards Section. Conant as of 01/20/2010 Case ID Case Name Close Date 08-01521 Theodore Charles Kunz vs. Abel Noser Corp. 06/26/2009 08-00085 Stephen B. Grayer vs. A.B. Watley Direct, Robert F. Malin & Stephen Malin, A.B. Watley, Inc. etal 02/05/2009 05-02803 Elizabeth S. Hevey and Denis Hevey v. A.G. Edwards & Sons, Inc. 03/22/2007 03-04420 David Cullen and Kathleen Cullen, et al v. American Financial Advisors, Inc., et al 03/22/2007 05-01790 Larry Deutsch v. Berry-Shino Securities, Inc. and Albert Brinmore Britton, Jr. 08/21/2006 05-00484 Ehrenkrantz King Nussbaum, Inc. v. Jason Konior 01/30/2006 03-02373 Maria Rudelli vs. RBC Dain Rauscher Inc. Paul E. Butler 05/12/2004 03-00112 William and Ann Peattie IRA vs. Salomon Smith Barney, Inc. and Brian Cleary 01/30/2004 01-04361 Morgan Stanley Dean Witter Inc. vs. Schmuel Benyakov 08/16/2002 ARBITRATOR BACKGROUND INFORMATION I had been a tenured Professor of Law at Baruch College (City University of New York) from 1978 until 1999. I was on the full time faculty, initially starting as an Assistant Professor, was promoted to Associate Professor, and promoted to Full Professor in 1985. I taught law courses to business students in both the B.B.A and M.B.A. programs Contracts, Partnerships, Corporations, and Negotiable Instruments, including conducting seminars for the Executive M.B.A. program on all business law related topics. I have written several articles and books in the areas of Contracts, Partnerships, and Corporations, and also Negotiable Instruments. I am the author of Chapter 1, "Corporate and Partnership Law" in New York Lawyers Desk book (published by the New York State Bar Association, 1989; Chapter revised and updated each year). Staff ID: LeeC Page 6 of 75 Publicly Available Awards Section, Current as of 01/20/2010 EFTA00726331 FINRA Dispute Resolution In 1999, I accepted an early retirement incentive, and, since then, I have been Professor Emeritus. Arbitrator ID: Since approximately 1985, I have had a part time law practice, primarily general practice, representing small to medium size businesses, partnerships and corporations, probate, wills, and estate matters. including guardianships. I've lectured at several bar association programs sponsored by the New York State Bar Association, New York County Lawyers Assnriation, and the American Bar Association on topics relating to Forming and Operating Closely Held Business (including partnerships and corporations) and Buying and Selling a Small Business. During the past 15 years, I have written several articles in the area of Guardianship, and have also lectured at many Guardianship Training Programs. I have written several articles including, "Should Mediation be available as an option to reduce litigation in contested guardianship cases"(NYS Br. June 2002); "Beware the misuse of powers of attorney" (NYLJ August 23, 2002), in addition to several other articles. I am and have been active In many different bar associations including American Bar Association, Dispute Resolution Section, NYS Bar Association, Dispute Resolution Section (Vice Chair); Business Law Section (member of Corporation Law Committee, Partnership Sub-Committee), and other Committees and sections over the years; member, New York County Lawyer's Association -Supreme Court Committee; Elder Law Committee; ADR and Arbitration Committee. Chair (4 yrs); Estates Trusts and Surrogate's Court Practice Section and other committees; I am also a member of the American Judges Association (1990 to present); I was President of the National Association of Women Lawyers, 1988 to 1989. I have been serving as Mediator and ADR Neutral in the Supreme Court, Commercial Division in New York County, 1996 to present, and have handled several commercial disputes of all types in the Court; I have been serving as a Special Master in the Supreme Court, New York County for the past twenty years and had been Co-Chair of the Special Masters Committee for three years; as a Special Master, I assisted the Supreme Court and Civil Court in resolving discovery related and other motions, and also settlement conferences in all types of cases. I have been a Mediator (and Arbitrator) in Attomey Fee Disputes at New York County Lawyers Association. 1998 to date; I have been serving as an Arbitrator in the Small Claims Court for over 20 years and was President of the Small Claims Arbitrators Association. I had been an Arbitrator for the American Arbitration Association, Commercial Dispute Panel and sat on several panels involving contract disputes, and partnership and shareholder disputes; I also serve as an Arbitrator and Mediator for the U.S. District Court, Eastern District. I am an arbitrator for the National Futures Association. I am a mediator certified by the NC Dispute Resolution Commission for Superior Court civil matters. I am a mediator with Safe Horizon, and am on the roster of mediators for the US Bankruptcy Court, Southern and Eastern Districts, and on the Roster of mediators for the NJ Superior Court. I am a mediator for the US E.E.O.C. I have attended and completed several Training Programs for both arbitrators and mediators. I co-chaired a program at the annual meeting of the NYS Bar Association, January 27, 2005 on "Ethical Dilemmas in ADR" I co-chaired a CLE Program "Arbitration Disputes in Business Transactions" May 23, 2006. I chaired CLE program "Arbitration Update" from Pre-hearing to Post-hearing--What Lawyers Need to Know" at NY County Law Association May 3, 2007 I have attended the Annual Hot Topics for Securities Arbitrators and Mediators each year for the last six years. last program June 9, 2009. I wrote Chapter 26, Mediation, NY Lawyers Deskbook (NYSBA). I am appointed by the Appellate Division First Department as a Special Master-Mediator in their Pre-Argument Appeals Program. I have the following degrees: BBA, MBA, MS and JD. Staff ID: LeeC Page 7 of 75 Publicly Available Awards Section. Current as of 01120/2010 EFTA00726332 FINRA Dispute Resolution Arbitrator ID: Arbitrator Disclosure Report Report reflects information provided by the arbitrator through 01/1512010 ARBITRATOR Name: Mr. Richard L. Herzfeld Skills in Controversy: Arbitrator ID: There are no skills in controversy information. CRD #: City/State/Country: New York / NY / United States Classification: Public Skills in Securities: FINRA Mediator: No There are no skills in security information. Chair Status: Qualified EMPLOYMENT Start Date End Date Firm Position 07/2001 Present Bahn, Herzfeld & Muller, LLP Partner/Attorney 11/1990 03/1998 Rosen Einbinder & Dunn Of Counsel 11/1987 01/2001 Richard L. Herzfeld Sole Proprietor 01/1982 10/1987 Kimmelmar Sexter & Sobel Associate 01/1979 01/1981 Appellate Division Second Department Law Assistant 01/1977 01/1979 Nassau County Legal Aid Staff Attorney EDUCATION Start at End Date School Decree 09/1981 05/1984 NYU LLM Taxation 09/1974 06/1977 SUNY Buffalo JD 09/1969 12/1972 SUNY Buffalo BA TRAINING Completed Description 03/2009 Motion to Dismiss Training 01/2009 Expungement - 2008 Refresher 08/2007 Revised Code of Arbitration 12/2004 Expungement online mini-course 07/1996 Chairperson Securities Training 03/1994 Intro Securities Arbitrator Training Details Firm/School Hours Location FINRA 1 FINRA 1 FINRA 2 online NASD 1.5 online NASD 6 New York, NY NASD 4 New York, NY DISCLOSURE/CONFLICT INFORMATION Tvoe Firm Name ils Staff ID: LeeC Page 8 of 75 Publicly Available Awards Section, Current as of 0120/2010 EFTA00726333 FINRA Dispute Resolution Initiated/defended legal action against Has made a disclosure about Has made a disclosure about Has made a disclosure about Has an account with Has made a disclosure about Has an account with Initiated/defended legal action for Has made a disclosure about Has made a disclosure about Initiated/defended legal action against Has made a disclosure about Has made a disclosure about Has made a disclosure about Has made a disclosure about Has made a disclosure about Has made a disclosure about Has made a disclosure about Has made a disclosure about Has made a disclosure about Initiated/defended legal action against Has made a disclosure about Has made a disclosure about Has made a disclosure about Has made a disclosure about Has made a disclosure about Initiated/defended legal action against Has an account with Has made a disclosure about Initiated/defended legal action against Has made a disclosure about Initiated/defended legal action against Has made a disclosure about Has an account with Has made a disclosure about Has made a disclosure about Staff ID: LeeC Arbitrator ID Investors Associates et. al Metalitsa v Investors Associates et. al 508 Securities B&W Global. LLC Brendan E. Cryan & Company Charles Schwab & Co., Inc. DE Trading LLC Fidelity Investments Institutional Srvcs Frankel Charles Schwab & Company, Inc Fidelity Investments Institutional Srvcs Rollin vs. Frankel GHA, LLC GP Direct Corp. Gaines Berland, et. al Grenadier v. Gaines Berland. et. al Heights Partners. Inc. J. H. Heffernan Securities J. Streicher & Co., LLC Jeffrey L. Aaron Kevin G. Boyle Securities Kingsood Investments, Inc. MND Partners Marquis Holdings, Inc. Matrix Trading, LLC Morgan Stanley DW Inc. Niall Campbell Peter Pauker Richard Meisenberg Robert G. Pears & Co. SNB Securities Salomon Smith Barney Smith Barney Sten Securities, LLC Sterling Foster & Co. Talking Horse. LLC Tolucca Pacific et. al. Trinity Trading Corp. Waterhouse Securities Weiskopf Silver & Co. William V. Frankel & Co. Dean Witter 1988 Caschetta v. Salomon Smith Barney Hadge vs. Smith Barney J. Gregory & Company /Sterling Foster & Co. Bastek v. Tolucca Pacific et. al. Page 9 of 75 Publicly Available Awards Section. Current as of 01/20/2010 EFTA00726334 FINRA Dispute Resolution Has made a disclosure about Has made a disclosure about Was Arbitrator for Initiated/defended legal action for Has made a disclosure about Initiated/defended legal action for Initiated/defended legal action against Had an account with Arbitrator for Initiated/defended legal action against Has made a disclosure about Initiated/defended legal action for Has made a disclosure about Initiated/defended legal action against Has made a disclosure about Is a Client Is a Client Is a member of Is a Member of Bar Association Was a member of Is a Client Initiated/defended legal action against Is a member of Has made a disclosure about Has made a disclosure about WIlima Toll Z & Z Securities, Inc. AM & NYC Civil Court W.V. Frankel G & L Partners Jeffrey Brooks Securities Inc. Josephthal Kemper Securities, Inc. NYSE National Securities On Point Executions Wellmont Securities Arbitrator IO: 1991 1991 Lidz v. Josephthal Woodworth vs. National Securities Adverse against: Davidson Asset Management For Wnckowski vs. VVindmwski Kemper Securities Group/Bateman Eichler,Hill Kollner v. PaineWebber Mitoric Trading and LTL Intl Trading Corp. New York County Lawyers New York State Bar Association PIABA Paul Schopf, Richard Whittington, Rizwar Gundal SNB Securities 1991 Securities Subcommittee Seff vs. Frankel Weiskoff v. Morgan Stanley PUBLICLY AVAILABLE AWARDS Publicly Available Awards Section, Current as of 01/20/2010 Case ID Case Name 06.01679 Robert Montanino v. H&R Block Financial Advisors, Inc. 07-01269 Daniel H. Morris v. Aurora Capital LLC & Jeff E. Margolis 06-05308 Jacob Bimbaum vs. Worldco LLC 99-00982 Peter V. Christiansen v. Craig Moss and PaineWebber Inc. 96-02028 Arnold Taft vs. Cantella & Co., Inc., Curt F. Stetson and Harold Gong et al Staff ID: LeeC Close Date 08/19/2008 03/24/2008 06/11/2007 10/19/2000 12/17/1997 Page 10 of 75 Publicly Available Awards Section, Current as of 0120/2010 EFTA00726335 FINRA Dispute Resolution 93-01522 Harvey and Elaine Luppescu v. A.R. Schmeidler & Co., Inc. and Arnold R. Schmeidler Arbitrator ID: 08/02/1994 ARBITRATOR BACKGROUND INFORMATION I am a member of Bahn Herzfeld & Multer, LLP in general practice, including the representation of small businesses in transactional matters and business litigation. As part of my practice, I represent both investors and broker dealers in securities arbitrations and litigation (both plaintiff and defense work) and also represent broker dealers and investment advisers in regulatory matters and general business affairs. I received my JD from the University of Buffalo and a masters in taxation from NYU. Additional Disclosure Information: 1. Former clients Paul Schopf, Richard Whittington, Rizwar Gundal, all money manages. 2. Additional Litigation: Rollin v Frankel, Seff v Frankel, Woodworth v. National Securities 3. Additional Litigation: Sedona v. Frankel et al 4. Additional Litigation: Frankel v. Fidelity et al 5. Additional Litigation: Reeding v. Avalon Staff ID: LeeC Page 11 of 75 Publicly Available Awards Section, Current as of 01/20/2010 EFTA00726336 FINRA Dispute Resolution Arbitrator ID: Name: Arbitrator ID: CRD #: City/State/Country: Classification: FINRA Mediator. Chair Status: Arbitrator Disclosure Report Report reflects information provided by the arbitrator through om snow Mr. Howard Weitz Scarsdale / NY / United States Public No Qualified ARBITRATOR Skills in Controversy: Account Related - Dividends, Account Related - Transfer, Executions - Execution Price, Executions - Limit v. Market Order, Employment - Breach of Contract, Employment - Commissions, Employment - Compensation, Employment - Libel or Slander, Employment - Partnerships, Employment - Promissory Notes. Employment - Wrongful Termination, Other - Underwriting Skills in Securities: Annuities, Corporate Bonds, Fannie Mae, Freddie Macs, Ginnie Maes, Government Securities. Hedge Fund. Limited Partnerships, Mutual Funds. Municipal Bonds, Municipal Bond Funds, Options. Private Equities, Preferred Stock. Real Estate Investment Trust. Structured Products, Variable Annuities. Warrants/Rights EMPLOYMENT Start Date End Date Finn Position 06/1981 Present Howard Weitz, P.C. Attorney/President 01/1975 06/1981 Howard Weitz, Esq. Attorney 01/1974 12/1974 Techinical Tape, Inc. In-House Attorney 01/1973 12/1973 Plaza Group, Inc. In-House Attorney 11/1963 12/1972 Leventritt, Bush et al Law Firm Associates/Partner 01/1960 10/1963 M.S. Scheiber & Company Tax Accountant 07/1955 12/1959 Several CPA Firms EDUCATION Start Date End Date School School of Business POEM LLB, Admitted to NY Bar, 196 BBA, Accounting 09/1955 09/1951 06/1959 Brooklyn Law School 06/1955 Bernard Baruch Completed Description Details TRAINING Firm/School Hours Location 04/2009 Motion to Dismiss FINRA 1 01/2009 Training Expungement - 2008 FINRA 1 Refresher 04/2007 Revised Code of NASD 2 online Arbitration 03/2007 Revised Code of NASD 2 online Arbitration 12/2005 Direct Communication NASD 1 online Rule Staff ID: LeeC Page 12 of 75 Publicly Available Awards Section, Current as of 01/20/2010 EFTA00726337 FINRA Dispute Resolution Arbitrator ID: 08/2005 New Chairperson NASD 11 online Training [NASD] 01/2005 Expungement online mini-course NASD 1.5 online 01/2005 Duty to Disclose online mini-course NASD 1 online 01/2005 Discovery/Abuse online course NASD 1 online 12/2004 New Panel Member NASD 11 New York, NY Training [NASD] 12/2004 Civility Training NASD 1.5 New York, NY DISCLOSURE/CONFLICT INFORMATION Tvoe Has an account with Has an account with Has an account with Had an account with Had an account with Had an account with Licensed to Practice Was Arbitrator for Is a Member of Bar Association Is a member of Firm Name Details Charles Schwab & Co., Inc. Joint account with spouse Citigroup Global Markets, Inc. Scottrade, Inc. Cadaret, Grant & Co., Inc. Charles Schwab & Co., Inc. Wachovia Securities, LLC CPA NYSE New York New York County Lawyers Association PUBLICLY AVAILABLE AWARDS Publicly Available Awards Section, Current as of 01/20/2010 Case ID Case Name Close Date 08-04263 Richard Berman and Dorothy Berman vs. Bear Steams & Co. Inc. 12/21/2009 07-03536 Michael Lewis v. Nordic Partners Inc. v. Anders Lindquist 11/04/2009 08-01978 Rosalie Sellitto vs. Ameriprise Financial Services, Inc. and Michael Sangirardi 08/31/2009 07-00114 Jason Cohen, individually and on behalf of Oracle services, Inc. FBO Jason Cohen vs. UBS 02/27/2008 Financial Services 05-00203 Howard Comart, Loretta Comart, David Liebowitz, et al v Merrill Lynch Pierce Fenner & Smith, 10/03/2006 04-07823 Inc, Michael Rosenthal, Stafford Reynolds v. Brown & Company rVkla J.P. Morgan Investment, LLC 11/03/2005 ARBITRATOR BACKGROUND INFORMATION I have practiced law on a full time basis since 1963. The areas of my practice during this entire period have been corporate and securities law, business and commercial law, trusts and estates, taxes and real estate. I hold a CPA license (inactive) that I obtained working as an accountant during the day while attending law school classes at night. My accounting background has been an extraordinary asset to me in connection with virtually every facet of my legal work. I joined the New York City law firm of Leventritt, Bush, Lewittes and Bender in 1963; I became a partner of the firm in 1967. The law firm's clients included a NASD member broker-dealer firm, a large New York Stock Exchange listed company and an Staff ID: LeeC Pape 13 of 75 Publicly Available Awards Section. Current as of 01/20/2010 EFTA00726338 FINRA Dispute Resolution Arbitrator open-end mutual fund. I left the law firm about nine years later when the firm contracted in size. After a short stint as in-house counsel to two American Stock Exchange listed companies, I started my own law practice in 1975, which I continue to date. I have done extensive work in securities law at the Federal and state levels, including Securities and Exchange Commission filings and other aspects of corporate compliance. I have worked on real estate partnership offerings and responded to a wide range of questions involving securities issues raised by clients. I have prepared and filed for clients investment advisor applications and broker-dealer registrations with Federal and state authorities. I have dealt directly with brokerage firms regarding transfers of restricted shares, proxy solicitations, share exchanges resulting from mergers, 'blue sky' qualification requirements and margin requirements for clients' accounts. I am familiar with the rules of the New York Stock Exchange and NASDAQ insofar as they apply to corporate directorships, stock options, shareholders meetings and when shareholder approval is required. I have dealt with the major public accounting firms regarding clients' financial statements and the application of generally accepted accounting principles. I have issued independent legal opinions for other law firms relating to securities and tax matters. I have represented individuals making investments in privately held companies, and I have negotiated the terms of and prepared documents relating to employment, partnerships, corporations and real estate. With respect to the trust and estate areas, in addition to drafting documents, I have been responsible for overseeing administration of estates and trusts and advising executors and trustees and I have served as an executor of an estate. An important part of my work in the estate and trusts area has been establishing brokerage accounts and reviewing all transactions in the accounts involving a wide variety of investments. I have extensive knowledge of the various types of qualified employee plans and have, with the assistance of pension planners, initiated plans for clients, both small and large. In both the estate and trust area and the pension area, a key part of my role as an attorney is to advise the executors and trustees of their responsibilities as fiduciaries of beneficiaries and pension plan participants. In the litigation area. I have actively assisted trial counsel in many commercial cases and I have tried two tax cases before the U.S. Tax Court. From a personal standpoint, I have been an investor in stocks and bonds over the years and have become familiar with a variety of market products available to investors. I received my law degree from Brooklyn Law School in 1959 and was admitted to the New York Bar in 1960. I received a Bachelor of Business Administration degree from the Bemard Baruch School of Business of the City College of New York in 1955. I also took post-graduate law school courses at NYU Law School during 1959 and 1960. I am a member of the New York County Lawyers Association. I believe that my ability to act as an independent arbitrator of a dispute is greatly enhanced by my legal, business, and accounting background, a significant portion of which relates to the securities industry. The integrity of any