COURT §551.32(1)(b), Wis. Stats. and 5.01(2), Wis. Adm. Code COUNTY . . . . . . . . . . . .OF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . STATE OF WISCONSIN : : : : : : DEPARTMENT OF FINANCIAL INSTITUTIONS DIVISION OF SECURITIES Index No. Calendar No. th Plaintiff(s) -against- 345 West Washington Ave., 4 Fl. JUDICIAL SUBPOENA PO Box 1768 Madison, WI 53701-1768 (608) 266-3693 TTY: (608) 266-8818 Internet: www.wdfi.org INVESTMENT ADVISER UNDERSTANDING OF SUPERVISORY Defendant(s) : .RESPONSIBILITIES .REGARDING .WISCONSIN. UNIFORM SECURITIES LAW .................... ............. ............ ..... AND ADMINISTRATIVE CODE The applicant understands that pursuant to s. DFI-Sec 5.05(1), Wis. Adm. Code, it shall establish and keep current a THE PEOPLE OF THE STATE OF NEW for applying such procedures, which may be reasonably expected set of written supervisory procedures and a system YORK to prevent and detect any violations of §551, Wis. Stats., and rules and orders under this chapter. The procedures TO shall include the designation, by name or title, of a number of supervisory employees reasonable in relation to the number of licensed representatives, offices, and transactions in this state. A complete set of the procedures and system for applying them shall be kept and maintained at the principal or designated office and every Wisconsin branch office. The applicant's procedures must be structured to ensure compliance with all requirements of GREETINGS: Wisconsin Law that are applicable to the type of business transacted by the applicant. The following are some (but not all) of the sections of Wisconsin Law that must be addressed in the applicant's procedures. WE COMMAND YOU, that all business and excuses being laid aside, you and each of you attend before 1. the Honorable Stats. It is unlawful for any person who the §551.44, Wis. , at receives any consideration from another person for Court advisingof other person as to the value of securities or their purchase or sale, whether through the issuance of the located at County analyses in room or reports ,or otherwise, in this state, to employ any device, scheme or artifice to defraud the otherany recessed on the day of , 20 , at o'clock in the noon, and at person; or engage in any act, and give course of as a witness in this action on the part as a fraud or deceit or adjourned date, to testifypractice or evidence business which operates or would operateof the upon the other person. 2. §551.31(3), Wis. Stats. It is unlawful for any person to transact business in this state as an investment adviser unless so Your failure to comply withathis subpoena under this chapter,aexcept that licensing and will make you liable to licensed or unless licensed as broker-dealer is punishable as contempt of court is not required under any on whose behalf this subpoena was issued for a maximum penalty of $50 and all damages sustained as a the party the following circumstances: result of your failure to comply. a. The person effects transactions or provides investment advice in this state exclusively for the account of persons specified in §551.23(8)(a) thru (f), Wis. Stats. Witness, Honorable , one of the Justices of the has no place ofday of in Wisconsin and in the last twelve months has had fewer than business Court inb. The person County, , 20 6 clients in Wisconsin. c. The person is a federal covered adviser and not subject to state licensing requirements. (Attorney must sign above and type name below) Representatives must be licensed pursuant to §551.32(4), Wis. Stats. and s. DFI-Sec 5.01(3), Wis. Adm. Code. 3. S. DFI-Sec 5.05(5), Wis. Adm. Code. No licensed investment adviser whose principal office is located in Attorney(s) for Wisconsin may enter into, extend or renew any investment advisory contract with a customer in this state unless the contract is in writing and a copy of the contract is given to the customer within 20 days after the execution of the contract. S. DFI-Sec 5.05(8), Wis. Adm. Code. Each investment adviser shallOffice and each of its customers a written provide to P.O. Address brochure or other document meeting the requirements of rule 204-3 under the Investment Adviser Act of 1940 relating to its business and activities. 4. 5. Telephone No.: S. DFI-Sec 5.06(1), Wis. Adm. Code. Exercising any discretionary power in placing an order for the purchase Facsimile No.: or sale of securities for the account of a customer without first obtaining written discretionary authority from the E-Mail Address: customer unless and discretionary power relates solely to the price at which, or the time when, an order involving a definite amount of a specified security shall be executed, or both. Tel. No.: Mobile 1 of 2 American LegalNet, Inc. www.USCourtForms.com DFI/DOS/IAUSR(WI)(R09/00) COURT §551.32(1)(b), Wis. Stats. and 5.01(2), Wis. Adm. Code 6. COUNTY . . . . . . . . . . . .OF. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S. DFI-Sec 5.06(3), Wis. Adm. Code. Inducing trading in a customer's account that is excessive in size or : Index No. frequency in view of the financial resources and character of the account. S. DFI-Sec 5.06(4), Wis. Adm. Code. Recommending to a customer the purchase, sale or exchange of any security without reasonable grounds to believe that the recommendation is suitable for the customer on the basis : JUDICIAL SUBPOENA of information furnished by the customer after reasonable inquiry concerning the customer's investment Plaintiff(s) objectives, financial situation and needs, and any other information known by the investment adviser. 7. : Calendar No. -against- : 8. S. DFI-Sec 5.06(5), Wis. Adm. Code. Placing an order to purchase or sell a security for the account of a : customer without the authority to do so (when discretionary power is not granted, in writing, by the investment advisory client). : 9. S. DFI-Sec 5.06(6), Wis. Adm. Code. Borrowing money or securities from, or lending money or securities to, a Defendant(s) : .customer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....... 10. S. DFI-Sec 5.06(8), Wis. Adm. Code. Placing an order for the purchase or sale of a security if the security is not registered or the security or transaction is not exempt from registration under ch. 551, Wis. Stats. 11. S. DFI-Sec 5.06(9), Wis. Adm. Code. Placing an order to purchase or sell a security for a custome