HomeMy WebLinkAbout07-3738IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER GEKAS and VERONICA
GEKAS, husband and wife,
Plaintiffs
V.
MORGAN STANLEY, DW, INC.,
Defendant
NO. 07_ 3-7 3k CO."a -,
CIVIL ACTION - LAW
JURY TRIAL REQUESTED
NOTICE
YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set
forth in the following pages, you must take action within twenty (20) days after this Complaint
and Notice are served, by entering a written appearance personally or by attorney and filing in
writing with the Court your defenses or objections to the claims set forth against you. You are
warned that if you fail to do so the case may proceed without you and a judgment may be entered
against you by the Court without further notice for any money claimed in the Complaint or for
any other claim or relief requested by the Plaintiff. You may lose money or property or other
rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO
NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE
OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP.
CUMBERLAND COUNTY BAR ASSOCIATION
32 South Bedford Street
Carlisle, PA 17013
1-800-990-9108
717-249-3166
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER GEKAS and VERONICA NO. 07 - 3') 3 $ "`'{ 7i11
GEKAS, husband and wife,
Plaintiffs
V.
CIVIL ACTION - LAW
MORGAN STANLEY, DW, INC.,
Defendant JURY TRIAL REQUESTED
COMPLAINT
1. Plaintiffs Peter and Veronica Gekas, husband and wife, are adult individuals with
an address of 202 Condoguinet Avenue, Camp Hill, Cumberland County, Pennsylvania 17011.
2. Defendant Morgan Stanley is a brokerage/investment corporation registered to do
business in the State of New Jersey with an address of H.F.C. Plaza II, 1 St Floor, Jersey City,
New Jersey 07311.
3. In the year 2004, Plaintiffs were customers and clients of Defendant and had
investments with Defendant which were managed by Defendant.
4. In 2004, Defendant falsely reported taxable income to Plaintiffs to the Internal
Revenue Service in the amount of $299,800 on two 1099 forms.
5. As a result of said false reports by Defendants to the I.R.S., the Internal Revenue
Service has incorrectly assigned Plaintiffs a federal tax debt of $126,371.02.
COUNTI
INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS
6. Plaintiff incorporates by reference Paragraphs 1-5 of this Complaint as if said
averments were fully set forth at length herein.
7. As a result of said false reports by Defendant to the I.R.S., the Internal Revenue
Service has continually harassed Plaintiffs to pay an incorrect tax obligation of $126,371.02 from
2004 to the present, including sending Plaintiffs notices of levies on their real and personal
property.
8. As a result of said harassment by the I.R.S. due to Defendant's intentionally
wrongful acts, as aforesaid, Plaintiffs have suffered depression, intense emotional distress and
extreme anxiety; and it has been necessary for Plaintiffs to hire an attorney to correct the I.R.S.
error to their great detriment and loss.
WHEREFORE, for all the foregoing reasons, Plaintiffs Peter and Veronica Gekas request
damages against Defendant Morgan Stanley in excess of the compulsory arbitration limits.
COUNT II
GROSS NEGLIGENCE
9. Plaintiff incorporates by reference Paragraphs 1-8 of this Complaint as if said
averments were fully set forth at length herein.
10. Defendant knew or should have known that reporting taxable income for the
Plaintiffs to the I.R.S. was completely and totally wrong and had no basis in fact.
11. Defendant knew or should have known that by falsely reporting taxable income of
$299,800 for the Plaintiffs to the I.R.S. in 2004, Plaintiffs would be subject to severe harassment
by the I.R.S. to pay tax on said incorrect income, including levies on the Plaintiffs' property.
12. Defendant knew or should have known that by falsely reporting taxable income of
$299,800 for the Plaintiffs to the I.R.S. in 2004, Plaintiffs would be subjected to extreme
harassment by the I.R.S. to pay an incorrect tax debt which would cause severe emotional
distress to Plaintiffs.
13. By falsely reporting taxable income of $299,800.00 for Plaintiffs to the I.R.S. in
2004, Defendant committed gross negligence against Plaintiffs.
WHEREFORE, for all the foregoing reasons, Plaintiffs Peter and Veronica Gekas request
damages against Defendant Morgan Stanley in excess of the compulsory arbitration limits.
June (?I, 2007
Peter B. Foster, Esquire
Attorney for Plaintiffs
PINSKEY & FOSTER
114 South Street
Harrisburg, PA 17101
717-234-9321
I.D. 15357
a" •
VERIFICATION
I, Peter Gekas, hereby verify that the statements made in the foregoing Complaint are true
and correct to the best of my knowledge, information and belief. I understand that false
statements herein are made subject to the penalties of 18 Pa.C.S.A. § 4904, relating to unworn
falsification to authorities.
June , 2007
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IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER N. GEKAS and VERONICA P. CIVIL ACTION NO. 07-3738
GEKAS, husband and wife,
Plaintiffs,
V.
MORGAN STANLEY, DW, INC., ORIGIMI
DEFENDANT'S PETITION TO COMPEL ARBITRATION
COMES NOW Defendant Morgan Stanley, DW, Inc.1 ("Morgan Stanley'), through its
undersigned counsel and pursuant to 42 Pa.C.S. §7304(a), files this Petition to Compel
Arbitration, stating as follows:
In 1999, Plaintiffs Peter and Veronica Gekas signed a contract with Morgan
Stanley to open an investment account. Ex. I (Active Assets Account Application); see also
Complaint at ¶3 ("Plaintiffs were customers and clients of Defendant ....").
2. Just above Plaintiffs' signatures, the contract they signed stated that "I
acknowledge I have received the Dean Witter Client Agreement [and] I UNDERSTAND THAT
THIS ACCOUNT IS GOVERNED BY THE PRE-DISPUTE ARBITRATION CLAUSE
APPEARING ON PAGE 7 OF THE AGREEMENT." Ex. 1.
Effective April 1, 2007 Morgan Stanley DW Inc. merged into Morgan Stanley & Co.
Incorporated, and is no longer a legal entity. The correct new broker-dealer name is
Morgan Stanley & Co. Incorporated.
3. The contract that Plaintiffs signed incorporated by reference a Client Account
Agreement ("CAA") that provided further details about the contract's arbitration provision. Id.;
see also Ex. 2 (CAA) at p. 9. The arbitration provision in the applicable CAA actually appears
on page 9, rather than page 7, due to the fact that at the time Plaintiffs opened their account, the
CAA had recently been revised, while the AAA Application had not. The terms of the
arbitration provision, however, did not change.
4. Plaintiffs are bound by contract to arbitrate any dispute they might have with
Morgan Stanley. Exs. 1 and 2; see also Federal Arbitration Act, 9 U.S.C. §2; Pennsylvania
Uniform Arbitration Act, 42 Pa.C.S. §7303.
5. The Complaint that Plaintiffs filed in this Court is not their first attempt to avoid
the arbitration provision in the contract that they signed. Plaintiffs have previously filed
complaints against Morgan Stanley, relating to their investment account and their relationship
with Morgan Stanley, before the Pennsylvania Securities Commission ("PSC") and the Court of
Common Pleas for York County.
6. On January 10, 2001, Plaintiffs filed a Complaint against Defendant Morgan
Stanley with the PSC, claiming that Richard Wolf (a former Morgan Stanley financial advisor)
mismanaged their account, and that he and Morgan Stanley were therefore responsible for the
losses in it. Ex. 3 (PSC Complaint).
7. While the PSC investigation was proceeding, Plaintiffs filed a writ of summons
against Morgan Stanley and Richard Wolf in the Court of Common Pleas for York County on
February 1, 2002, followed by a Complaint on February 20, 2003. Ex. 4 (York County
Complaint). Plaintiffs' York County action arose from and related to the same circumstances as
their PSC Complaint.
-2-
Defendants filed Preliminary Objections to Plaintiffs' Complaint in York County,
stating, inter alia, that Plaintiffs were contractually bound to arbitrate their dispute. On May 2,
2003, the Court of Common Pleas for York County ordered the parties to develop a factual
record to allow it to determine whether the matter should be sent to arbitration.
9. On August 20, 2004, the PSC concluded its investigation of the PSC Complaint,
and entered into an Offer and Undertakings Memorandum with Morgan Stanley to resolve the
matter. Ex. 5 (PSC Offer and Undertakings Memorandum).
10. Without admitting liability or wrongdoing, Morgan Stanley paid $149,900 to
Plaintiffs, which included their initial investment at Morgan Stanley ($130,000), less the amount
that Plaintiffs took from the account when they closed it, plus interest at Pennsylvania's legal
rate of 6%. Id.
11. Despite the resolution of the PSC Complaint, Plaintiffs continue to pursue their
York County action. Depositions were taken and the parties recently completed briefing on
Defendants' Preliminary Objection in the Nature of Motion to Compel Arbitration. The parties
are presently awaiting a decision from the Court of Common Pleas for York County on the
arbitration issue.
12. Plaintiffs filed the instant Complaint in this Court to allege that Morgan Stanley
did not report the PSC settlement payment described in ¶10 to the Internal Revenue Service in
proper fashion. See Complaint at 1¶4-5. Once again, Plaintiffs have improperly brought a state
court action despite their prior agreement to arbitrate all claims between them and Morgan
Stanley.
-3-
13. This Court should enforce the parties' agreement to arbitrate, and require
Plaintiffs to submit the present dispute set forth in their Complaint to arbitration, consistent with
the terms of their agreement.
WHEREFORE, Defendant Morgan Stanley prays that this Court:
a) Stay this litigation pending resolution of the arbitration issue;
b) Resolve the arbitration issue by requiring Plaintiffs to submit their dispute with
Morgan Stanley to arbitration as provided in the parties' contract; and
c) Grant such other and further relief as the Court deems just and proper.
Respectfully submitted:
Pic
Jos P. Pohl III
PA No.82237
Jason A.Spak
PA ID No. 89077
Reed Smith LLP
435 Sixth Avenue
Pittsburgh, PA 15219
(412) 288-3131
Counsel for Defendant
Dated: August 10, 2007
-4-
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Client Account Agreement
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MORGAN STANLEY DEAN WITTER
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WD ACTIVE ASSETS CLIENT AGRMNT 6/98 DUPE Prof: P1939NYC03 Job: 03NYC3412 Colorl: Wed
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be certain they understand the operation of a mar-
gin account under various market conditions. Mar-
gin trading is not for everyone, and the increased
leverage of margin privileges may heighten both
risks and rewards. Clients wishing to apply for mar-
gin privileges should read Section III, Margin Privi-
leges, carefully and discuss any questions with
their Financial Advisor.
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Options Trading
Options trading is available for eligible clients.
While relatively conservative methods of trading
options are common, options trading can be highly
speculative. Some strategies expose the options in-
vestor to the risk of losing far more than their origi-
nal investment, and unexpected events or unusual
market volatility can make it extremely difficult
and costly for an investor to close out open options
positions. Dean Witter Reynolds cannot be respon-
sible for conditions beyond its control including
extreme market volatility or trading volume, gov-
ernmental restrictions, or exchange and market-
place rulings including trading halts. Clients
considering options trading should be convinced
that they possess the requisite investment experi-
ence; have the financial resources to bear any po-
tential losses their trading strategies could expose
them to; and have concluded options trading is
suitable within the overall context of their invest-
ment objectives. Applications for options trading
are available upon request.
Communications; Suspected Errors
Until Dean Witter Reynolds receives a written
notice of a different address, all communications -
including margin and maintenance calls - sent to
the address of record are presumed to have been
given to the client personally whether or not actu-
ally received.
Clients suspecting an error on their monthly
statement or a trade confirmation should promptly
contact the manager of the branch servicing that
account. Dean Witter Reynolds may presume the
statement correct unless it receives written notifi-
cation about the suspected error within 10 days. It
is the client's responsibility to seek immediate clar-
ification about entries that the client does not
clearly understand.
Termination or Restriction of Accounts
A client may terminate an account at any time
but will remain responsible for any charges to the
account. Dean Witter Reynolds likewise may termi-
nate an account at any time or place limitations on
available services, including the nature, volume
and timing of transactions.
Active Assetse clients who decline to continue
Active Assets* status will automatically have their
assets transferred to a standard Dean Witter Reyn-
olds securities account unless other instructions
are received. Because the Active Assets* money
T
WD ACTIVE ASSETS CLIENT AGRMNT 6198 DUPE Proj: P1939NYCO3 Job: 03MYC3412
File; DA34128.;3
funds and Insured Account are int compo-
nents of the Active Assets* program, all such funds
will also be liquidated and transferred (at no
charge) to the standard Dean Witter Reynolds secu-
rities account in the form of free credit balances.
Clients may then choose to invest these funds in
Dean Witter Reynolds money market funds under
the terms described in the prospectuses for those
funds.
Governing Law
No provision of this Agreement may be
amended or waived unless agreed to in writing and
signed by an authorized officer of Dean Witter
Reynolds. If any provision of this Agreement be-
comes inconsistent with any applicable current or
future law, that provision will be deemed amended
to conform with the law, but all other provisions
will remain in effect. This Agreement and its en-
forcement will be governed by the law of the State
of New York without regard to conflict of laws
provisions.
This Agreement shall cover individually and
collectively all accounts, joint, single or in a fiduci-
ary capacity, which are held by Dean Witter Reyn-
olds for the client. This Agreement shall be binding
upon the present Dean Witter Reynolds organiza-
tion and any successor organizations and their re-
spective assigns; it shall be binding upon the
current account owner(s) and the heirs, executors,
administrators, trustees, receivers, successors and
assigns of the account.
SIPC Protection
Securities held in Dean Witter Reynolds ac-
counts are protected by the Securities Investor Pro-
tection Corporation NMI for up to $500,000 per
account holder which includes protection for up to
$100,000 in uninvested cash. Through Travelers
Casualty and Surety Company ("Travelers"), Dean
Witter Reynolds provides an additional $99.5 mil-
lion in coverage for your securities.
Of course, neither SIPC nor Travelers coverage
provides protection against losses due to market
fluctuations. In addition, neither S1PC nor Trav-
elers cover money market funds or mutual funds.
Clients should understand that Dean Witter
Reynolds does not provide tax or legal advice. Cli-
ents should always consult their own accountant or
attorney with questions.
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ii. The Active Assets Account
1
Dean Witter Reynolds's Active Assets Account® offers integrated financial services linking together a
securities account, a no-load money market trust or a federally insured bank account, checkwnting privi-
leges and a VISAO debit card. It also offers summarized tax and portfolio information. 24-hour account
information, an electronic funds transfer service, a dividend reinvestment service, and direct deposit
capability.
The annual program fee is $80 for Active Assets* Accounts and $100 for Business Active Assets*
Accounts. Dean Witter Reynolds reserves the right to change annual program fees and services at any time.
The Components of the Active
Assets* Program
The Securities Account
The securities account is a conventional mar-
gin or cash brokerage account which may be used
to purchase and sell securities on margin or on a
fully-paid basis. The General Information about se-
curities accounts provided in Section I of this
Agreement also applies to Active Assets Accounts;
clients should make sure they read and understand
that information. Active Assets* clients who are
eligible and approved for margin privileges should
also be sure to carefully read Section III of this
Agreement which outlines the terms and condi-
tions governing the use of margin privileges.
Money Market Funds
A money market fund or FDIC insured account
is an integral part of every Active Assets Accounty.
On each business day, an account's free credit bal-
ances, as of the previous close of business, are auto-
matically invested in the money market vehicle
chosen by the account holder. "Free credit bal-
ances" means any cash that could be withdrawn
from the securities account without creating a neg-
ative balance or giving rise to interest charges; it
does not include any credit balance generated from
the short sale of securities.
Active Assets Accounts holders may select any
one of the following money market vehicles:
a. The Active Assets Money Market Trust
b. The Active Assets Government Trust
c. The Active Assets Tax-Free Trust
d. The Active Assets California 'lax-Free
Trust
M/D ACTIVE ASSETS CLIENT AGRMNT 8/98 DUPE
File: DA3412B.;3
Monitt/New York (212) 229-6500 Page Dim: 7.
e. The Insured Account, which is FDIC in-
sured, is maintained at MountainWest Fi-
nancial Corporation, which has entered
into an agreement with Dean Witter Reyn-
olds to participate in the Active Assets%
Program. Account holders selecting this
option will be sent a separate document
containing the trams governing the In-
sured Account. FDIC insurance is pro-
vided for up to $100,000 per depositor.
(Note: Not available to residents of Con-
necticut or for profit entities including:
corporations, partnerships and invest-
ment clubs.)
Each Active Assets Trust is a diversified open-
end management investment company seeking
high current income, preservation of capital and
liquidity from investment in short term securities.
Trust shares are neither insured nor protected by
the FDIC, SIPC or any other governmental or pri-
vate agency. An investment in 'rust shares is a
security purchase and is not the same as a bank
deposit.
The price of Trust shares is the per share net
asset value next determined after a purchase or
redemption order is entered. While each Trust
seeks to maintain a $1.00 net asset value, there is
no guarantee that this objective will be met. More
complete information about Trust shares may be
found in the accompanying Trust prospectus given
to all Active Assets Account® holders.
In view of the Active Assets* program annual
account fee, investors seeking solely to invest cash
in a money market, government or tax-free fund,
and not wishing to use the automatic investment
and other special features of the Active Assets Ac-
countm, should consider alternative means of
purchasing money funds.
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Chackwriting Privfleges
Free checkwriting privileges are available
through the Active Assets Accounts from Bank
One, Columbus, N.A. under Bank One's rules and
applicable state and federal laws. Business Active
Assets Accounts may write 50 checks a month
free and thereafter pay $.15 per check. Active As-
setss checks may be used for any purpose includ-
ing transferring funds between brokerage accounts,
but federal regulations prohibit their use for the
direct purchase of securities. All accounts are sub-
ject to nominal fees for such items as reorders of
checks, orders of special style checks, stop pay-
ment requests, copies of cancelled checks and dis-
honored checks. Clients may retrieve copies of 3
cancelled checks per year free; each additional re-
trieval is $5. Investors should be aware that the
checking feature is intended to provide clients with
easy access to the assets in their accounts; the Ac-
tive Assets Accounts is not a bank account.
VISAS Debit Cards
A VISAS debit card is available at no addi-
tional cost from Bank One and may be used to
purchase merchandise, services or to receive cash
advances. Dean Witter Reynolds will debit an ac-
count directly to pay VISA transactions upon no-
tice from Bank One. All VISA transactions will be
reflected on the Active Assets Accounts monthly
statement; no separate monthly VISA bill will be
sent. Dean Witter Reynolds and/or Bank One may
when necessary answer or make inquiries about a
card holder's credit history. Use of the VISA card is
governed by VISA and Bank One regulations as
well as applicable state and federal law
The VISA card may also be used to access Ac-
tive Assets Accounts funds through Automatic
Teller Machines (`ATMs") at any VISA network ma-
chine worldwide. Amounts up to $1,000 per day
may normally be withdrawn; however, local bank
regulations may limit this amount. Dean Witter
Reynolds will impose a $1.00 fee for each ATM
withdrawal. Local bank fees may also apply. Clients
expecting to make ATM withdrawals will need Per-
sonal Identification Numbers ("PINS"). Information
on PINS is available by calling 1-800-869-DEAN.
VISA charges incurred in a foreign currency
will be converted by VISA International into a U.S.
Dollar amount. The currency conversion rate used
is either a wholesale market rate or a government
mandated rate in effect one day prior to the
processing date, increased by one percent (1%) in
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each case. The conversion rate on the processing
day may vary from that when the transaction
occurred.
Questions on V11SA transactions. If a client be-
lieves a statement is wrong, or if more information
about a VISA transaction is required, clients should
telephone 800-889-DEAN or write to Dean Witter
Reynolds, P.O. Box 87, Bowling Green Station, New
York, NY 10274 no later than 60 days after the
FIRST statement on which the questioned transac-
tion appeared.
Complaints will be investigated and, in case of
error, corrected promptly. If the investigation takes
more than 20 business days, the account will be
recredited for the amount in question so that the
funds are available to the client during the time it
takes to complete the investigation.
Clients subscribing to the Active Assets ser-
vice may be liable for the unauthorized use of their
VISA card in an amount up to $50. The owner of a
VISA card will not be liable for any unauthorized
use which occurs after Bank One has been notified
orally or in writing of a loss, theft or possible unau-
thorized use. If shares of a Trust are redeemed for
the unauthorized use of the VISA card, such shares
shall be reinstated as if never redeemed and Dean
Witter Reynolds will indemnify the Trust against
any losses caused thereby.
If a VISA card is lost or stolen, the Active
Assets client should report the loss immedi-
ately by placing a collect can to Bank one at
(614) 248.4242 any time, day or night, seven
days a week.
When an Active Assets Accounts is closed, all
VISA cards and unused checks must be promptly
destroyed. Clients must notify the Dean Witter
Reynolds branch office that they have done so to
avoid a delay in the disposition of the account's
assets.
The Authorized Limit
The Authorized Limit in the Active Assets Ac-
counts is the total amount available for invest-
ments, checkwriting and VISA transactions. It is
calculated as the sum of.
a. free credit balances in the account; plus
b. the value of any Active Assets Trust shares
or Insured Account balance; plus
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c. the available margin loan value; minus
d. any debit amount owed Dean Witter
Reynolds.
The Authorized Limit is accessed in the above
order; its value may fluctuate on a daily basis and is
dependent upon such factors as the collection of
checks deposited, the market value of securities,
the status of securities transactions, and the time
required to transmit and confirm data between fi-
nancial institutions. The Authorized Limit is im-
mediately reduced at the time Bank One is notified
of the use of the VISA card, not at the time applica-
ble sales or cash advance drafts are paid. Dean Wit-
ter Reynolds may withhold access to the proceeds
of checks deposited until collected and until fed-
eral funds become available. If a VISA transaction
or a check is rejected because of an insufficient
Authorized Limit, Dean Witter Reynolds will not be
liable for any consequences of the rejection.
Debits to the Account will be satisfied in the
following order of priority:
a. securities transactions, including margin
maintenance calls and other account fees;
b. VISA debit card transactions; and
c. Bank One checking transactions.
If any debit in the account remains after Dean
Witter Reynolds has requested payment, then Dean
Witter Reynolds is authorized to sell, liquidate,
transfer or otherwise apply any asset of the account
holder held by Dean Witter Reynolds to satisfy the
liability without requiring further notice or de-
mand before such action is taken. Liability for such
obligations shall survive termination of the
account.
Other Account Faeatures
The Active Assets Accounts program offers
other special features at no additional charge,
including
• Direct deposit of social security, payroll or
other recurring income.
• Automatic bill payment for items requir-
ing regular, periodic payments such as
mortgages or insurance premiums.
• Monthly mailing of interest and dividends
generated by securities held in your
account.
• Coding of checks to allow for easier
monthly and year-end recordkeeping.
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• Comprehensive monthly and annual sum-
mary statements providing a record of all
transactions.
• Dividend reinvestment service.
• Electronic funds transfer service.
• Gain and loss summary for a monthly re-
view of realized and unrealized gains and
losses ($45 fee for accounts with less than
$250,000. The gain and loss summary is
not for tax purposes.).
• Two free certified checks per year ($15
each thereafter).
Dean Witter Reynolds may add, modify or de-
lete special features from time to time. More infor-
mation about any of these features is available from
your Financial Advisor.
In Case of Errors or Questions About Your
Electronic Transfers
Telephone us at 1-800.869-DEAN
or
Write us at Special Products
Attn: Customer Service
5 World Trade Center
New York, N.Y. 10048
as soon as you can, if you think your statement or
receipt is wrong or if you need more information
about a transfer listed on the statement or receipt.
We must hear from you no later than 60 days after
we sent the FIRST statement on which the problem
or error appeared.
(1) Tell us your name and account number (if
any).
(2) Describe the error or the transfer you are
unsure about, and explain as clearly as
you can why you believe it is an error or
why you need more information.
(3) Tell us the dollar amount of the suspected
error.
If you tell us orally, we may require that you
send us your complaint or question in writing
within 10 business days.
We will tell you the results of our investigation
within 10 business days after we hear from you and
will correct any error promptly. If we need more
time, however, we may take up to 45 days to inves-
tigate your complaint or question. If we decide to
do this, we will credit your account within 10 busi-
ness days for the amount you think is in error, so
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that you will have the use of the money during the
time it takes us to complete our investigation. If we
ask you to put your complaint or question in writ-
ing and we do not receive it within 10 business
days, we may not credit your account.
If we decide that there was no error, we will
send you a written explanation within three busi-
ness days after we finish our investigation. You
may ask for copies of the documents that we used
in our investigation.
M. Margin Privileges
This section only applies to those clients eligible and approved for margin privileges. Margin clients
should read it with particular care. "You" refers to the owners of the account and "we" refers to Dean Witter
Reynolds.
Margin Privileges
Margin trading is not for everyone. You should
examine your investment objectives, financial re-
sources and risk tolerance to determine whether
margin trading is appropriate for you. Margin privi-
leges involve the extension of credit by Dean Witter
Reynolds to you, secured by the collateral in your
account and the amount borrowed will appear as a
debit balance on which you will be charged interest
at varying rates as described on this page. The in-
creased leverage which margin provides may
heighten both risks and rewards.
Pledge of Securities
Dean Witter Reynolds may borrow money to
lend to margin customers, including you, and may
pledge customers' securities and other assets as col-
lateral for such loans. You give Dean Witter Reyn-
olds permission, without notice to you, to pledge
and hypothecate your securities and other prop-
erty, separately or together with assets of other mar-
gin customers, as collateral for any outstanding
loans you may have from us at that time.
In return for the extension or maintenance of
credit by Dean Witter Reynolds in connection with
your account, you acknowledge that the securities
in your margin account, together with all attendant
rights of ownership, may be lent to Dean Witter
Reynolds or lent out to others. In connection with
such loans, and in connection with securities loans
made to you to facilitate short sales, Dean Witter
Reynolds is authorized to receive and retain certain
benefits (including interest on your collateral
posted for such loans), to which you will not be
entitled. In certain circumstances, such loans may
limit, in whole or in part, your ability to exercise
voting rights of the securities lent.
Adequate Margins & Repayment
In the interest of maintaining a sound financial
condition, a securities broker-dealer must be able
MID ACTIVE ASSETS CLIENT AGRMNT 6/96 DUPE
File: DA3412C.;3
Merrill/New York (212) 229-6500 Page Dim: 7.
to act appropriately and promptly with respect to
each extension of credit it has made. Economic and
market conditions change, often rapidly, and the
values of individual securities can be volatile. In
light of such conditions, we retain absolute discre-
tion in determining when additional collateral will
be required from you.
You agree at all times to maintain such margins
for your account with Dean Witter Reynolds as re-
quired by law or custom, or as we may deem neces-
sary or advisable. You also promise to discharge
your obligations to Dean Witter Reynolds upon de-
mand; this obligation survives termination of your
account with Dean Witter Reynolds. Any oral
agreement to the contrary will be unenforceable.
No Financial Advisor, branch office manager or
branch employee has any authority to waive or
modify Dean Witter Reynolds margin calls or post-
pone sell-outs or buy-ins.
Liquidations & Covering Positions
If for any reason, in our sole discretion, we
deem it necessary or advisable, you authorize us:
a, to require additional collateral or equity
from you;
b. to sell or transfer any or all of your securi-
ties and other property, from any of your
accounts;
c. to buy in (or "cover") any securities and
other property of which your accounts
may be short; and
d. to cancel any outstanding orders or close
out any commitments made on your
behalf.
Circumstances prompting Dean Witter Reyn-
olds to take such action could include, but are not
limited to:
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a. extreme market volatility or trading
volume;
b. your failure to promptly supply additional
collateral upon request;
c. filing of an attachment, levy or petition of
bankruptcy against you, your accounts, or
assets in your accounts; or
d. your incapacity or death.
2.50% above Dean Witter Reynolds's "Base Lending
Rate" depending on the total size of your debit bal-
ance, as follows:
Avuese Daft addW D" W16 Bids ?`I. a ft R to
$0 - $24,999 +2.50%
$25,000 - $49,999 +2.00%
$50.000 -$99,999 +1.25%
$1001000+ +0.75%
Notwithstanding Dean Witter Reynolds's gen-
eral polity of giving notice of a margin deficiency,
and despite any specific incidents or prior course of
conduct between us, you understand we may and
authorize Dean Witter Reynolds to liquidate securi-
ties and other property to satisfy margin mainte-
nance requirements without notice to you and
without any prior request for additional margin from
you.
We may perform such sales or transactions ac-
cording to our judgement and discretion - with or
without prior notice or advertisement - on the
exchange or other market where such business is
usually transacted; or at public auction or private
sale (including transactions with Dean Witter
Reynolds for its own account); and you waive any
right of redeeming the proceeds of such transac-
tions without our consent.
Short Account - Marking to Market
Short securities will be "marked to the market"
periodically. If a security which you sold short (or
"short against the boel appreciates in market value
over the selling price, your margin account will be
debited, and if the security depreciates in value
your margin account will receive a credit.
Rate of Interest Charged; Credit Terms
Securities and Exchange Commission
Rule 10b-16 requires a broker who extends credit to
a customer in connection with a securities transac-
tion or otherwise to furnish specified information
detailing the terms and conditions under which
interest will be charged.
The interest rate charged by Dean Witter Reyn-
olds on amounts you owe will range from .75% to
Dean Witter Reynolds sets its Base Lending
Rate in light of market conditions. The Base Rate
reflects the broker call rate, the prime rate, the fed-
eral funds rate, and other commercially recognized
interest rates. The interest rate a client is charged
will increase or decrease without notice as the Base
Rate increases or decreases. If Dean Witter
Reyn-
olds increases the rate charged you for any other
reason, you will be given at least 30 days advance
written notice.
We reserve the right to charge your account a
rate higher than stated above in light of factors such
as high concentrations of a security, low-priced or
speculative securities, account activity, or purpose
of borrowing.
Interest Computation
Dean Witter Reynolds computes interest on
debit balances as:
average applicable 4t of days with net
daily x interest x debit balance
debit balance rate 360
Each time the Base Rate changes, the interest
charge is computed and added to your debit bal-
ance and a new interest computation begins. If the
interest rate has not changed during a calendar
month, the interest charge is computed as of the
last day of the month and added to the debit bal-
ance. Your monthly statement will reflect the aver-
age outstanding debit balance (if any), the
applicable interest rate or rates with the period
each rate was in effect, and the resulting dollar
charge. Days on which the net balance is zero, or a
credit, will be disregarded entirely for purposes of
the interest computation.
Clients may find it advisable to give considera-
tion to paying their interest charges on a periodic
basis, thereby reducing the likelihood of margin
calls due to increasing debits.
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Arbitration
Arbitration Disclosures: Industry regulations
require that the following disclosures appear in
conjunction with the arbitration agreement which
immediately follows:
a. Arbitration is final and binding on the
b. The parties are waiving their right to
seek remedies in court, including the
right to jury trial.
c. Pn"Aitratlon discovery is generally
more limited than and different from
court proceedings.
d. The arbitrators' award is not required to
include factual findings or legal reason-
and any party's right to appeal or to
seek modification of rulings by the arbi-
trators is strictly limited.
e. The panel of arbitrators will typically in-
clude a minority of arbitrators who were
or are affiliated with the securities
industry.
E No person shall bring a putative or certi-
fied clam action to arbitration, nor seek
to enforce any pre-dispute arbitration
agreement against any person who has
initiated in court a putative clam action;
who is a member of a putative class who
has not opted out of the class with respect
to any claims encompassed by the puta-
tive class action until: (1) the class
certification is denied; (ii) the class is
decertified; or (iii) the customer is
excluded from the clam by the court.
Such forbearance to enforce an agree-
ment to arbitrate shall not constitute a
waiver of any rights under this agree-
ment except to the extent stated herein.
WD ACTIVE ASSETS CLIENT AGRMNT 8/98 DUPE
Re: DA3412C.;3
Arbitration of Controversies
You agree that all controversies between you or
your principals or agents and Dean Witter Reynolds
or its agents (including affiliated corporations) aris-
ing out of or concerning any of your accounts, or-
ders or transactions, or the construction,
performance, or breach of this or any other agree-
ment between us, whether entered into before or
after the date an account is opened, shall be deter-
mined by arbitration only before the New York
Stock Exchange, Inc.; the National Association of
Securities Dealers, Inc.; or the Municipal Securities
RulemaWmg Board, as you may elect. If you make
no written election addressed to us by registered
mail within five days after receiving a written de-
mand for arbitration from us, then you authorize us
to elect one of the above listed forums for you.
Unless rules of the arbitral forum dictate other-
wise, any arbitration proceeding between us shall
be held at a location at which the selected forum
regularly conducts such proceedings nearest to the
Dean Witter Reynolds office carrying your accounts
at the time the claim arose; this venue shall apply
even if you have related disputes with other parties
which cannot be resolved in the same locale. Ex-
cept for simplified proceedings (small claims). any
arbitration proceeding between us shall be heard
and decided by a panel of not fewer than three
arbitrators.
The law of the State of New York will apply in
all respects, including but not limited to determina-
tion of applicable statutes of limitation and avail-
able remedies. The award of the arbitrator or a
majority of them shall be final, and judgement on
the award may be entered in any state or federal
court having jurisdiction.
If you have any questions about margin privi-
leges, make sure to discuss them with your Finan-
cial Advisor.
T
Proj: P1939NVC03 Job: 03NYC3412 Cobra: Mred
MoMII/New York (212) 229-d500 Page Dim: 7.500" X 8.750" Copy Dim: 40. X 50.3
MERRILL CORPORATION NDEWIND//25-MAR-03 15:44 D1SKOD3:[03NYC2.03NYC3412]HO3412A.;3
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T
MID ACTIVE ASSETS CLIENT AQRMNT 8/96 DUPE Pro): P1939NYC03 Job: 03NYC3412 Colorl: Wed
FIW. H03412A.;3
Me"I/New York (212) 22"M Papa Dim: 7.500" X 8.750" Copy Dim: 40. X 50.3
MERRILL CORPORATION NDEWIND/ 25-MAR-03 15:44 DISKOOS:[03NYC2.03NYC3412)N03412A.;3
PAGSFMT:EDGARTEST.FMT Fmc MOM= Foot: OD/ OD YI RSoq: 2 Clr. 0
DISK005:[03NYC2.03NYC3412)3412.BST;1 1 C Cs: 38776
I
C1998 Dean Witter Revnolds Inc.
T
M/D ACTIVE ASSETS CLIENT AGiRMNT 6198 DUPE Proj: P1939NYCO3 Job: 03NYC3412 Colorl: Wed
File: H03412A.;3
M*rrM/New York (212) 229.6500 Page Dim: 7.500" X 8.750" Copy Dim: 40. X 50.3
it) Y.14
COMMONWEALTH OF PENNSYLVANIA
PENNSYLVANIA SECURITIES COMMISSION
COMPLAINT FORM
Pwam mvi+ew the aft dwd instruc*vM befts c*T;NW g this lbrm.
This oornpiaint is being fdw on behalf of W (Skip Part A; pmeaed dWo*. to Part B)
Someone Else (Compkft endre form, starting with Part A)
PART A - FILER'S INFORMATION (Compke Part A if you are filing this Complaint on behalf of sornewe other than
yourself. Otherwise, skip partA area mgmyd d mety oo Part e.) p
G?
r
ta. &_ iL in IL
Your Last Nano First INtddle InIsal
Your SU"t Addrm (Nurr** and NAM)
C_4k&%s.LrL,p_.Aa
P-iiv
Home Teieptwne me Work Tdaphone No.
PA% 6 - INVESTOR'S INFORMATION
c1La S Vey 0-n I a
a egg.+F,-
Invewa s
Hone Tewphone No.
and Name)
c.wct.n'? P4 te..R.n,4
ftrk Telephone No.
PART C - COMPLAINT IS AGAINST: a Rrrn, businus, or company a indivk*i
1
!I
mamas of sm% %mMss, or company
Address
j Telephone No.
Ofr+ce Use
&L
L/c
Ta
Resat -ship to Invesw
p.
N .
Tip
lnu met web Site Cif appikable)
1
.? .? iii II 111U. CDC r- . I-)
Has the firm. business. or company been made aware of this matter? Yell No
if yes, person and title to whops you communicated: 8- 1 -in or. A - 1'30 1 4
La
Whatwere the results? fA •p _L a s j7, ..• a ti Q t•} QX Q .A-,
L
Name(s) of individual(s) - Use addMonai proper if there are several k divWuals with Werent addressee.
N I A
AddM=
sky County. State Tip Code
T ~wpM ns No. - - Internet Viet; Site (if applicable)
Ha$'ft indvidual been nods swam of this matter? Yes -No
if yes, what were the results?
3. How long have you dealt with the fine? „L'y.._...., Ye(a) Wlth the kitwidueks)? _ t_Iyear(s)
f 0M-F n y r"o•+'T w s
PART D - DESCRIPTION OF COMPLAW
Deft of MW lave d e L a a Date of most recant investment
At the time of your most resent inveg meat, were you age.65 or older?
Oeecribe your Corrsptairtt in detail„ inducting the evomts in the order in Which they happwwd ana the arnotatt you invested. If
your compU tls against a brdrendetsbr. include d$tlk ofwhet you pUrchased orWM (e , mama of ataocK rwatber of sruM,
and price), if your aamplaint is against an hvea we adviser or ltnartaal planner. indude a detailed description of the natuire
of the service Mvolvsd and Me prM e. AUWh addt0orral shedts if necessary. Rau m atadNd f m*wct ww-
y }
?-
T c t e 3 ?r herd l j?? l L¦? IVN MtJ?, lnU!CS? M L 91
05 Y-% 'P d
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n.?Ci on YAt?rs( t tYl bu he>*tf- tflis}y'_U?fail
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. q n t -in e_ z n d r a c ?? n i,?,_Y1 S ,.,.r_r??..}'
fn tt_sn_b n e%go-n_ it n+ cs m tj Q _c c n, ern e_a
Tr____. r a n A s n U P_ + e r we" o 1 n La t 1 Yt + f-
?'..s? YL..n ? h :t e_ h e.)Q s +^ a c? 12 .t.'^'? A
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?r ?y? ? n v 2. ? f p ,r_ ?. ft ? r .? s. t ? r? d C? ? 1 C P ?l S ?
PART E - RESOLUTION
Flow do you weft this dispute resolved? S @_ S. * ?&?Vb-MA , k- to ?-1 n v f
_11-f i h L & r nN l S ! ._? to r? in r f o 'i Mti c_
•J LN l.1J.f?VV1 iL'G.Lr:l
r ?
NU.GSG r.1r
have you brought this complaint to the attention of omens? please check box(es) as appmpnate,
U.S. Securities and Exchange Commission
t.: Natlonal Aasocration of seeutft Osv*$. lrm
Philadelphia SiocR E=hange
AmenQm Stock Exchange
C New York Stodc.Euchonge
C Commonly Fumme Trading C*w*M oa
0 Consumer PrObKOW agency - It ao, Whk?i one'
11 Obitict Aftrney - It $a, which one?
T? Your atbomey . ideWf.
Pohl 0f610-t Goy t1eal
Other°; ? ? 9 ` pf' ? ti c.rt - 3 a
If neeessery, are you willing to appear as a W*ww, be ,swam. testily and be cross-examined concerning the
allegations made in Oft aompk* ?
Yea aL No
If no, why not?
I have read this aomplaK I fuy undersbnd its contents, and i cw* that it and photaoopiea of attached documents are rue
and correct to the beat of my Wwwledge and belief.
-4z I-
ZOM
oaa
Return completed farm and ptatocopfed documenas to:
PENNMVAN A SECURt'1 M COW11fBSfON
1090 N. EYE M 51=1.2M FLOOR
EAST"TE OR WE BULO1NG
HARRMBUR06 PA 171024410
Attar: Office at Seerelary
4
PETER N. GEK,AS and VERONICA P.
GEKAS,'husband and wife
Plaintiffs
V.
RICHARD WOLF and DEAN WITTER
REYNOLDS COMMODITY PARTNERS
t/d/b/a DEAN WITTER, and MORGAN
STANLEY DEAN WITTER & CO., INC.,
.. tjif6ziag --
IN THE COURT OF COMMON PLEAS
YORK COUN'T'Y, PENNSYLVANIA
NO.: 2002 SU 00546-01
CIVIL ACTION - LA W
JURY TRIAL DEMANDED
COMPLAINT
1. The Plaintiffs Peter N. and Veronica P. Gekas are husband and wife and adult
residents of Cumberland County, Pennsylvania.
2. The Defendant Dean Witter Reynolds Commodity Partners (hereinafter "Reynolds")
is a corporation with offices at One East Market Street, York, York County, Pennsylvania.
3. The Defendant Morgan Stanley Dean Witter & Co., Inc. (hereinafter "Dean Witter')
is a corporation with offices at One East Market Street, York, York County, Pennsylvania and is the
parent company of Reynolds.
4. At all relevant times, Wolf was an agent, apparent agent, servant, and employee of
Dean Witter and/or Reynolds and was acting within the course and scope of his employment with
Dean Witter and/or Reynolds.
5. At all relevant times, Wolf was a fiduciary for the Plaintiffs, Mr. and Mrs. Gekas,
and was required to act as a caretaker of their rights, assets, and well being with the utmost degree
of good faith, honesty, integrity, loyalty, and undivided service, including an obligation to act
reasonably in order to avoid negligent handling of the Plaintiffs' interests and a duty not to favor the
interests of any other person, including those of himself and his employer, over those of the
Plaintiffs.
6. At all relevant times, Mr. Wolf had a duty to disclose any dual agency or conflict of
interests, including conflicts between his own interests or those of his employer and the interests of
the Plaintiffs.
7. On or about June 22 1999, Mr. and Mrs. Gekas opened a joint account with Dean
Witter and/or Reynolds and invested about $130,000. Wolf became their broker. Copies of the
joint account agreement, Active Assets Account Application form, and Gain and Loss Summary
Enrollment Form are attached as Exhibits "A", "B", and "C", respectively.
8. Mr. and Mrs. Gekas never received a copy of an investment contract with Dean
Witter and/or Reynolds. Dean Witter and/or Reynolds provided them only with Exhibits A, B, and
C.
9. The initial application form was signed in the Gekas' convenience store with no
explanation.
10. Although the Plaintiffs requested a copy of their full investment contract, they never
received one.
11. Counsel for Plaintiffs also requested the additional documentation and never
received it.
12. The Pennsylvania Securities Commission also requested additional documentation
and was never sent anything other than Exhibits A, B, and C, and a disclosure statement with an
effective date of November 30, 2000.
13. Mr. and Mrs. Gekas did not initially receive a disclosure statement or a statement
detailing the risks of margin trading.
14. The disclosure statement that Mr. and Mrs. Gekas finally received was dated
November 30, 2000, a date long after they began investing with Dean Witter.
247555.11 eAU 3
2
15. Mr. and Mrs. Gekas were unsophisticated investors. English is not Mr. Gekas' first
language.
16. Wolf and Dean Witter and/or Reynolds were aware that the Plaintiffs' investment
capital was derived from a mortgage on their home and from a life insurance policy that they had
cashed-in.
17. Wolf convinced Mr. and Mrs. Gekas to open a margin account which significantly
increased their risk of loss. The Gekases had been reluctant to open such an account.
18. Wolf invested much of Mr. and Mrs. Gekas' money in highly volatile NASDAQ
stocks. A list of stock in which Wolf invested Mr. and Mrs. Gekas' money is included in an exhibit
attached as Exhibit "D".
19. Wolf then executed an excessive number of transactions on the Gekas' account as
well as untimely transactions, transactions authorized after providing inadequate information or
false information, which greatly increased his commissions. A record of Wolf's trading activity on
the Gekas' account is included in Exhibit "D".
20. For example, the volume of trading significantly increased between January 2000
and May 2000, as depicted in Exhibit A, attached hereto.
21. Mr. and Mrs. Gekas' capital account balance on February 2000 was $545,570.98.
By May the balance had declined to $137,926.50.
22. The Gekas' account, during that period, declined by a much greater percentage than
the NASDAQ did as a whole. See, chart attached hereto as part of Exhibit D.
23. Between April and August of 2000, the commissions, charges, and interest as
measured as a percent of average asset account value, was excessive, rising from 2.52% in March to
4.7% in April, 6.42% in May, 4.87% in June, 11.44% in July, and 6.63% in August.
247555.1UMMIC3
3
24. The commissions as a percent of average asset account value was also excessive.
See, data contained in Exhibit D and included herein.
25. Mr. and Mrs. Gekas' total capital investment with Dean Witter was $176,517, which
included a beginning capital contribution in June of 1999 of $130,000 and an additional capital
contribution in May of 2000 of $46,517.
26. After adjusting for $66,850 in checking and debit card withdrawals, the data in
Exhibit D depicts a total decline in capital while Dean Witter and its employee/agent Wolf
maintained the account, in the amount of $109,666.
27. During this same period, often Dean Witter took commissions, charges, and margin
interest totaling $89,097.
28. On April 12, 2000, Mr. Gekas asked Wolf to revoke his margin account, but Wolf
told him not to wont' about it.
29. When Mr. Gekas asked Wolf to protect his profits, Wolf told him that the market
was "golden for the next ten years" and that the Gekases would not lose their money.
30. Wolf, Dean Witter and/or Reynolds violated NASD Rules 2120, 2310, IM-2310-2,
and 2341 for failing to properly determine Mr. and Mrs. Gekas' tolerance for risk, for fraudulently
churning their account to generate excessive commissions, for failing to inform the Gekases of
possible conflicts of interest, for suggesting that the Gekases pursue investment options that were
too risky for their investment objectives and tolerance for risk, and for failing to properly advise the
Gekases of the risks of opening a margin account.
247555.1UMMU.C3 4
COUNT I - NEGLIGENCE
Peter N. Gekas and Veronica P. Gekas v. Richard Wolf, Dean Witter Reynolds
Commodity Partners t/d/b/a Dean Witter and Morgan Stanley Dean Witter & Co. Inc.
31. Paragraphs 1 through 30, above, are incorporated herein by reference as if set forth
in their entirety.
32. All of Plaintiffs' damages are the direct and proximate result of the negligence of
Defendant Richard Wolf, acting within the course and scope of his employment and/or agency or
apparent agency for Defendants Dean Witter Reynolds Commodity Partners and Morgan Stanley
Dean Witter & Co., Inc., in that he:
(a) Failed to adequately determine the Plaintiffs' tolerance for risk and
investment goals;
(b) Invested the Plaintiffs' money in a manner that was not suitable for their
investment goals and tolerance for risk;
(c) Failed to adequately disclose to the Plaintiffs' the risks associated with
margin investing,
(d) Violated his fiduciary duty to the Plaintiffs by executing an excessive
number of trades and untimely trades in order to generate extra commissions for himself and his
employer and without regard to the financial impact of the trades on Plaintiffs' portfolio;
(e) Violated his fiduciary duty to the Plaintiffs by failing to inform them of
conflicts of interest between himself, Dean Witter, and the Plaintiffs;
(f) Violated the UTPCPL, 73 P. S. § 201-1 et seq. by engaging in fraudulent and
deceptive conduct which caused confusion and misunderstanding in the sale or distribution of
services; and
247555.1 VMM\LC3 5
(g) Violated other provisions of state and federal securities laws, including the
Pennsylvania Securities Act of 1972, including sections 1-401 through 1-404, and federal law as
described in Rule l a-b(5).
WHEREFORE, Plaintiffs Peter N. Gekas and Veronica P. Gekas demand judgment against
Defendant Richard Wolf in an amount in excess of Thirty Thousand ($30,000.00) Dollars, exclusive
of interest and costs and in excess of any jurisdictional amount requiring compulsory arbitration,
together with punitive damages for Wolf s outrageous misconduct.
COUNT IT -NEGLIGENCE
Peter N. Gekas and Veronica P. Gekas Y. Dean Witter Reynolds
Commodity Partners t/d/b/a Dean Witter and Morgan Stanley Dean Witter & Co., Inc.
33. Paragraphs 1 through 32, above, are incorporated herein by reference as if set forth
in their entirety.
34. All of Plaintiffs' damages as related herein are the direct and proximate result of the
negligence of Defendants Dean Witter Reynolds Commodity Partners and Morgan Stanley Dean
Witter & Co., Inc., in that they:
(a) Are vicariously liable for the actions of their employees, agents, and
apparent agents;
(b) Failed to properly monitor and supervise Defendant Richard Wolf so as to
allow him to defraud and confuse the Plaintiffs;
(c) Failed to properly train Defendant Richard Wolf and negligently entrusted
him with a position by which he could defraud and confuse the Plaintiffs; and
(d) Allowed the Gekas' margin account to be opened without proper
documentation and without following proper procedures.
247555JUNQN W3 6
WHEREFORE, Plaintiffs demand judgment against Defendants Dean Witter Reynolds
Commodity Partners and Morgan Stanley Dean Witter & Co., Inc., in an amount in excess of Thirty
Thousand ($30,000.00) Dollars, exclusive of interest and costs and in excess of any jurisdictional
amount requiring compulsory arbitration, together with punitive damages for wanton disregard of
the Gekas' interests.
COUNT III - BREACH OF CONTRACT
Peter N. Gekas and Veronica P. Gekas v. Dean Witter Reynolds Commodity
Partners t/d/b/a Dean Witter and Morgan Stanley Dean Witter & Co., Inc
35. Paragraphs 1 through 34, above, are incorporated herein by reference as if set forth
in their entirety.
36. The contractual arrangement between the Plaintiffs and its agent and Dean Witter
and/or Reynolds, either explicitly, or by terms implied by law, required that Dean Witter and/or
Reynolds handle the account in good faith and deal fairly with the Plaintiffs. Dean Witter,
Reynolds, and Wolf breached their contractual arrangement with the Plaintiffs, failing to deal in the
required manner for the reasons stated above.
WHEREFORE, Plaintiffs request damages against Defendants Dean Witter Reynolds
Commodity Partners and Morgan Stanley Dean Witter & Co., Inc., in an amount in excess of Thirty
Thousand ($30,000.00) Dollars, exclusive of interest and costs and in excess of any jurisdictional
amount requiring compulsory arbitration.
COUNT IV - GOOD FAITH AND FAIR DEALING
Peter N. Gekas and Veronica P. Gekas v. Dean Witter Reynolds Commodity
Partners t/d/b/a Dean Witter and Morgan Stanley Dean Witter & Co., Inc
37. Paragraphs 1 through 36, above, are incorporated herein by reference as if set forth
in their entirety.
247555.1VMM11.C3 7
38. The misconduct of Wolf, Dean Witter, and Reynolds as described above constitutes
the breach of their duty of good faith and fair dealing and states an independent cause of action
against Defendants for Plaintiffs' losses.
WHEREFORE, Plaintiffs request damages against Defendants Wolf, Dean Witter Reynolds
Commodity Partners and Morgan Stanley Dean Witter & Co., Inc., in an amount in excess of Thirty
Thousand ($30,000.00) Dollars, exclusive of interest and costs and in excess of any jurisdictional
amount requiring compulsory arbitration.
COUNT V - MISREPRESENTATION
Peter N. Gekas and Veronica P. Gekas v. Richard Wolf, Dean Witter Reynolds Commodity
Partners t/d/b/a Dean Witter and Morgan Stanley Dean Witter & Co.. Inc.
39. Paragraphs 1 through 38, above, are incorporated herein by reference as if set forth
in their entirety.
40. Defendants are liable to the Plaintiffs for the misrepresentations of Defendant Wolf,
acting within the course and scope of his agency -and employment, in that he:
(a) advised the Gekases that the market would not decline in any significant way
and that their assets and profits would be protected;
(b) advised the Gekases not to worry about the effect that trading on margin
could have on their asset value and profits;
(c) failed to disclose the risks inherent in margin trading;
(d) failed to disclose the risks inherent in trading in high tech NASDAQ stocks;
(e) failed to disclose to the Plaintiffs that margin trading in high tech structuring
were not suitable for their financial situation or any degree of risk that was reasonable for them
under the circumstances.
247555AINOVALC3 8
WHEREFORE, Plaintiffs request damages against Defendants Dean Witter Reynolds
Commodity Partners and Morgan Stanley Dean Witter & Co., Inc., in an amount in excess of Thirty
Thousand ($30,000.00) Dollars, exclusive of interest and costs and in excess of any jurisdictional
amount requiring compulsory arbitration.
COUNT VI - VIOLATION OF PENNSYLVANIA SECURITIES ACT
Peter N. Gekas and Veronica P. Gekas v. Richard Wolf and Dean Witter Reynolds
Commodity Partners t/d/b/a Dean Witter and Morgan Stanley Dean Witter & Co.. Inc.
41. Paragraphs 1 through 40, above, are incorporated herein by reference as if set forth
in their entirety.
42. The misconduct of the Defendants, as stated above, violates the Pennsylvania
Securities Act of 1972, in particular stated at Sections 1-401 through 1-404, and Defendants are
liable as provided in Section 1-501.
WHEREFORE, Plaintiffs request damages against Defendants Dean Witter Reynolds
Commodity Partners and Morgan Stanley Dean Witter & Co., Inc., in an amount in excess of Thirty
Thousand ($30,000.00) Dollars, exclusive of interest and costs and in excess of any jurisdictional
amount requiring compulsory arbitration, together with counsel fees, penalties, punitive damages, or
interest to the extent permitted by law, and any other damages permitted under the law.
COUNT VII - VIOLATION OF UNFAIR TRADE PRACTICES,
CONSUMER PROTECTION LAW
Peter N. Gekas and Veronica P. Gekas v. Richard Wolf, Dean Witter Reynolds Commodity
Partners t/d/b/a Dean Witter and Morgan Stanley Dean Witter & Co.. Inc.
43. Paragraphs 1 through 42, above, are incorporated herein by reference as if set forth
in their entirety.
247555.1UMMEC3 9
44. The misconduct of Defendants, as stated above, violates the Pennsylvania Unfair
Trade Practices Consumer Protection Law (UTPCPL), and in particular its revisions at 73 P.S.
§§ 201-1, 201-2, and 201-3.
45. The misconduct of Defendants, as stated above, constitutes an unfair method of
competition and unfair or deceptive acts or practices in the conduct of any trade or commerce and
otherwise constitutes fraudulent conduct creating a likelihood of confusion or misunderstanding.
46. The Gekases are purchasers and consumers of the Defendants' brokerage services.
WHEREFORE, Plaintiffs request damages against Defendants Dean Witter Reynolds
Commodity Partners and Morgan Stanley Dean Witter & Co., Inc., in an amount in excess of Thirty
Thousand ($30,000.00) Dollars, exclusive of interest and costs and in excess of any jurisdictional
amount requiring compulsory arbitration, together with counsel fees, penalties, punitive damages, or
interest to the extent permitted by law, and any other damages permitted under the law.
Respectfully submitted,
ANGINO & ROVNER, P.C.
Jo?Cph b f. Melillo, Esquire
A mey I.D. No. 26211
4503 North Front Street
Harrisburg, PA 17110
(717) 238-6791
Attorney for Plaintiffs
Date: January 31, 2003
247555.IUMM\LC3 10
VERIFICATION
I, Peter N. Gekas, Plaintiff, have read the foregoing and do hereby declare and affirm that
the facts set forth therein are true and correct to the best of my knowledge, information and
belief. I understand that this Verification is made subject to the penalties of 18 Pa.C.S. § 4904,
relating to unworn falsification to authorities.
WITNESS:
i /
Date: 1 31 ID 5
3%=CATION
I, Veronica P. Gekas, Plaintiff, have read the foregoing and do hereby declare and affirm
that the facts set forth therein are true and correct to the best of my knowledge, information and
belief. I understand that this Verification is made subject to the penalties of 18 Pa.C.S. § 4904,
relating to unworn falsification to authorities.
WITNESS:
I / " /. /,-., e 4, /?? 2
nice P. cekas
Date: 431) m
17/28/P', 13:25:32 Morgan Stanley-> Page
F.AN WI717£R REYNOLDS INC.
T ACCOUNT AGREEMENT: TENANTS B'
ACCOUNT Na A.E.'
.rr11 G-1?1' Imen:
iideration of Dean Witter Reynolds Inc. ("you") carrying this Joint Account for the undersigned ("we" or "us'7, as Tenant:
Entirety, we agree as follows:
Individual Liability. (2) Since this is a joint account, we understand and agree that each of us shall have full authority tc
11 (including sell short), and otherwise trade in securities, commodities and other property on behalf of this Account; U
confirmations, statements, and communications of every kind; to receive and disburse money, securities, arid other
ty; to enter into, terminate, waive any of the provisions of, or modify agreements relating to the Account; and generally h
ith you as if each of us alone were the sole account owner, all without notice to the other account owner. We agree tha!
to either of us shall be deemed to be notice to both of us. Each of us shall be jointly and severally liable for this Account
t may follow the instructions of either of us concerning this Account and, should you receive inconsistent or conflietin6
:tions from us, we authorize you in your sole discretion to do any of the following: (a) select which instructions to fo11oW
rich to disregard; (b) suspend all activity in the Account, and decline to buy, sell, or trade any securities or other propert%
ou receive written instructions signed by both of us; (c) close the Account and, after repaying our margin debt to you (i:
eliver all securities and other property to the address of record; and/or (d) file an interpleader action in any appropriate
n which event you shall be entitled to recover all costs including reasonable attorneys' fees in an amount met by the court.
. may deliver or pay, to either of us, any or all of the securities and other property in the account, as either of us ma)
even if such deliveries or payments are made to one of us personally, and not for this Account. Further, you shall be under
gction to inquite into the purpose of any request for delivery of securities or other propeft nor shall you be obligated tc
he application'Qc disposition of such assets.
ae event of the death of either of us, the surviving spouse shall immediately give you written notice thereof, and you may
or after receiving such notice, take such proceedings, require such documents, retain such portion and/or restrict
tions in the Account as you may deem necessary or advisable to protect yourselves against any tax; liability, penalty of
to estate of any of us who shall have died shall be liable and the survivor shall be liable, jointly and-severally, to you for
?t or loss in this Account resulting from the completions of transactions initiated prior to your receipt of a written notice
.eath of the decedent or incurred in the liquidation of the Account or the adjustment of the interests of the respective
taxes or other expenses becoming a lien against or being pa)able out of the Account as a result of the death of either o=
hrough the exercise by the decedent's estate or its representatives of any rights in the Account, shall be chargeable
the interests of the'surviving spouse as well as against the interest of the estate. This provision shall not release the
. om any liability provided for elsewhere in this agreement
ces or communications to us about the Account are to be directed to: (please print)
Ae,fea_ kI -i 1") C A ?, Cie- V?t5 fi't' E?
te2ipCAW JAI ? ?3'(?r, 1?7 a I t
king that an account held as tenants by the entirety is available only to husbands and wives in certain states, we
t that (a) we are lawfully married to each other and (b) we maintain our residence in a state permitting the designation
s-by-the-entirety. We will promptly notify you should either circumstance change.
•oing shall bind the undersigned to you, your successors and assigns, by merger, consolidation or otherwise.
]Dean Witter '
ZS a1 -,5_57 ?
' wr Account Number
oust Holder Name 4b. Joint Holder Name
4ho- BRANCH USE ONLY -ap.
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im
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-•--
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is
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1$ DEAN WTTT'F.R REYN01PS INC.
06RGAN STANL EY I AN WITTER
Gain & loss Summary
Enrollment Form
Ca- P.
Aa,md Name
6a- 1?? 5?? GCP
Accowd Number
Dade
The Gain & Low Summary is an optional service available exclusively to select Morgan SWkT Dean Witter clients The Gain &
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Witter Reynolds Inc. trade history. An adjustment date will appear in the Additional Information co tlumn reflecting when your
request was processed
The Gain & Loss Summary is provided for informational purposes only. It is of6ered for your personal record weping only and
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,tgnarure =
mczcf,lb
Date i
< <:h CIO
Date
Morgan Stanley Dean Witter is a service mark of Morgan Stanley Dean Witter & Co.
SeMen are offered through Dean Witter Reynolds Inc, member SIPC
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Gekas - Morgan Stanley Dean Witter
Analysis of Monthly Transactions and Charges
Schedule 2
Note: Those shaded in yalarv are 2 Im 1 stock splits.
Appx-Dar Magin R ealized
T S?6oj
Bakame &H
zft
mw 9d
c
Tsla! g_&
W dan1
40/99 Bought AMAT 310 548750 1901125 - 197.96 (17,210.86)
6A" Bought CSOO 324 106.9315 19323.ss - 12&40 (17As3)
4/4099 Bought DELL 515 33.4875 17,220.31 - ZIL14 (17A33.80)
404/99 Bought HDI 325 SAM 17,10313 2DL13 - (17,309.61)
6F4P99 Bought LU 300 56MM 16,95000 185.21 - (17,L?756)
6AM Bought ORCL 7000 25.6875 2568730 - 28708 (Z5.9XR'R'!1
6F4199 Bou& TLAB 295 577500 17,036.25 18&47 (172?7Al)
jam-99 Total Avg, Days Held n/a 7 Tomacdom 38934 1,01229
7A" Bought (5C0 599 ".0/5 17AS81 - 22132 (17,?39.18)
7/1/99 Sold Hm 0 27 53.7500 17A68.75 24191 - 17X&90 (85.70)
VA" Bought AMZN 316 1262500 19,%7-W 128.40 - (20,078.25)
7M M Bought AOL 102 1168750 11NIZ 74.40 - (1119A R
MAO" Bought CSCO 786 633125 11,839.44 - 128!0 (111970.19)
MA099 Bought IBM 92 1293000 11,914.00 64.20 - (11,98055)
7/2499 Bought W. 471 685150 1177763 128.40 - (11006.38)
7/A" Bought MM 125 953125 11,914.06 - 106.13 (!2.012.54)
- )ad-99 Total Avg. Days Held 27 8 Tnandiom 63731 458.85 98.30 (79,99079) (8.70)
8n&" Bought LCOS 200 370673 7AIM 78.54 - (7A91A4)
$18199 BM4*t !.COs 1000 36.9375 79,3MM 314.19 (29,8665!)
Aag-99 TOW Avg. Days Held Wa 2 Tramactiom 392.73 - 725.10 (37ANJO)
-
9/Z$99 Bought AAPL 500 63.3750 31.68750 33LM (32;+02106)
Sep-9970bi Avg. Days Held nla 1 Transactions 33421 862.81 (31+024.06) -
1W4099 Sold AM?N 0 70 75.0673 73719.75 329.62 - 23,386.98 3,300.73
10/4099 Sold AOL 0 70 100.0625 1138 111.11 - 10,908.55 (1;089.46)
1W499 Sold CSCO S99 70 68.6875 12,844.56 - 192.60 12,649.18 678.99
10/4099 Sold mm 0 70 121.7500 11,201.00 96.30 - 11,101.97 (8718.58)
10/4/99 Sold LCOS 0 47 49AM 49,625.00 574.04 - 4901&95 11,68937
10/4099 Sold LU 300 122 60125 10,997.44 19026 - 10,803.86 (11104.52)
ION" Sold mm 0 70 90.9375 11,367.19 - 157.18 11,207.28 (815.26)
10/0/99 Bought AMAT 1420 77.7500 31,300.00 - 34240 MA US)
10/W99 Bought AMZN 300 77.6250 73,287.50 256.80 - (23>16A6)'
10/0/49 Bought , ATHM 400 44.1875 17,675AD - 263.46 (19940,81)
1W6 99 Bought CSCO 999 67.4375 26,975.00 34240 (27,319.75)
1W6/99 Bought PM 400 74.4375 79,775.00 - 34240 (30,119.75)
l0/W99 Bought LCOS 400 49..x000 19180000 287.66 - (70,09001)
low Sold A7HM 0 2 42.81?, 17,12500 757.20 16,864:87 00594)
_
oct-99 TOW Avg. Days Held 65 14 Transactions 1,846.39 1,897.64 IA"A6 (4092.09) 10,71334
11/4x99 Bought MSPT 500 930625 44531.25 - 42800 (46,961.60)
1103049 Sold AMZN 0 26 70MM 21,762,50 2%M 2100264 (7,54101)
lira" Sold TLAB 0 152 624375 18,419.06 - 756.80 180929 93228
]7/4099 Bought L%D 200 64.2500 1285000 146.78 - PZ.999.13)
11/4/99 Bought ISLD 610 643750 76,393.75 30027 - (26.694.62)
ll/w sold DELL 0 153 405000 2D,85730 - 32330 20,531.15 3,09735
IV4499 sold LU 0 101 66.0625 191518.75 756.80 - 19,7 AM 2„121.38
11!19/99 Bought IPOBX 1000 27MM 77,83000 - (27"11%
llrA%99 Bought A 50 30.0000 1,500.00 - - (IAW-"
IV23" Sold MSFT 400 20 84.8125 SA81.15 85.60 8,39301 (999.31)
riov 99 Told Avg. Days Had 91 10 Transactions 96125 1,093.70 1,27826 (NAW32) 2,607.69
Attorney Work Product
Privileged and Confidential Page 1 of 5
Gekas - Morgan $tanley Dean Witter Schedule 2
Analysis of Monthly Transactions and Charges
N
t
e:
o Tbose shaded is yellow an 2 for 1 stock splits.
Appx. Days UU& Realized
SetdeaentDate 1n-e Svmbol Balarice dd FEjg eP incloW Comm. Chatee Inkaft rsm c owaAWS)
Iw2m Bought ETYS 506 69.1730 34,97725 414.07 - ( w
IZ!L99 Sold MSFT 0 29 89.9375 35,713.00 - 342.40 35,629:45 (119tQ,Z3)
124M Bought AOL 325 79.1875 25735.94 786.99 - (202L A
Iza" Sold ETYS 0 6 522500 26,691.50 36252 - 26,32;1.74 (RAN."
17/13199 Sold IPOBX 0 24 3133 31,590.00 - - 30198.50 2AM
IZ1309 Sold ISLD 0 39 123.3750 75,Z•iM 550.07 - 74703.82 35,10.07
17/1499 Bought SUNW 300 79.1875 39,59Ci.75 - 42030 (4=6.W)
17/14199 Bought TYC 1000 VA375 27,43730 396.13 - (T?•835.g8)
12/1:499 Haight AWN 500 1063750 53,18730 MOD - (53„61985)
IZIL 99 Bought AOL 875 873750 43AVSO 429.00 - (4411985)
1?JYw Bought LOOS 900 86.31255 4335675 42LOO - (43,586.60)
171Y.Y49 Sold A 0 22 45.8125 ?~290.63 55.47 - x232.73 732.T3
I7J1w Sold Bar 0 70 72.6250 29ASM - 342.40 78,904.28 (1,415.47)
17/17/99 Sold AMZ.N 300 2 90.4375 19,68730 17120 19,51329 (1,933,86)
17117)99 Sold_ SUNW 300 3 755625 15,11250 171.20 14938.44 0^0,=
Dec-99 TOW Avg. Days Held 24 15 Transactions 3,520,45 1,27690 1,606,62 (98,3/7,78] 27x685.70
IAW Bought A 650 76MM 49.968.75 505.79 - (5O,476,"
L400 Ba & ELCO 500 32-%Z 16,28125 255.85 - (16,539.45)
1/5/OO Bought XING 500 28.62550 14,31250 233.43 - (10"
1AM Sold AMZ.N 0 21 77-MZ 23,19175 256.80 - 27.933,82 (9,236,"
IA W Sold AOL 500 26 753750 24496.88 3005 - 74,189.16 (1,836.12)
1/6% Bought QCOM 20D 183.9375 36,787.50 194.45 - CA,981•9m
11(VOO Bought QCOM 525 183212.5 591739.06 315.98 - (6M05739)
1/6w Sold AAPL 290 100 IOC1250 21,8" - 204.52 21,668.65 8,208,54
vw Sold CSCO 1190 92 106-MM 42,52;1.00 - 34240 42178.83 14859.08
114p0 Sold LCOS 500 92 81.0000 37„!00.00 34240 - 3 UBC17 11,964.16
1/1)OD Sold TYC 500 24 36MM 18,125.00 259.59 - 17AQ49 3,94450
1/2Qw Bought XING 600 42.8750 4„28750 SS.05 - (VW.M
1202 Bought XING 700 429375 4,293.75 5&05 - (4351.80)
]/1400 Bought )(ING 800 43MM 4,325.00 58.05 - (41X&M)
1/Xm Bought XRVG 1000 43.00011 8,600.00 116.10 - (8,71&M
1/1400 Sold ELCO 0 15 2D.6250 10,31250 176.12 - 10.133AS (6,405.77)
1/Z= Bought CMGI 100 121.7500 12,175.00 80.25 - 02,207,
1/L`vD0 Bought CMGI 300 121.3730 242T5.00 160.50 - (24,43530)
1/16100 Bought ORCL 23W 60MM 18,075.00 - 256.80 (18,334.15)
IAAW Sold TYC 0 43 382125 19x406255 291.44 19111.81 5193.82
jart-00 Told Avg. Days Held 52 20 Ttausactiom 31667.36 803.72 2,009.67 (68,287.46) 26,69192
2N/00 Bought CMGI 500 1127500 22,550.00 171.20 (2=13%
zww Bought CMGI 800 112.6875 33,806.25 256 80 - (3tWAO)
2!4100 Bought HGSI SW 95.8750 47,93950 428.00 - (48.36985)
2/4x00 Sold A 0 30 67MM 44,118.75 475.23 - 43,639.69 (6,83920)
Z%W Sold AOL 0 51 55.7500 27,875.00 358.16 - 27,5~136 (16,60429)
Z%w Sold )ODVG 500 30 36.4375 18,218.75 209.62 - 18,006.16 3,43988
21400 Sold XING 0 15 36MM 18AMM 209AS - 18196M (3,602.84)
2/1.00 Bought HGO 800 .101.0000 30,300.00 256.80 - (30X915)
WAID Bought ORCL 3000 55MM 3805.00 - 432.37 (39,10924
27/00 Sold AAPL 0 132 101.4375 29,416.88 - 256.80 29,156.74 10'582.78
YAOO Sold LCOS 0 54 74ZW 37,437.50 409.84 37.024.06 (6,562.54)
2/1400 Bought MCLL 500 13MM 6,500.00 - 135.43 (607
71Lw Bought HGSI 1250 159 71715.00 46256 - (74M.91)
246.00 Bought HGSI 1830 161AM 93,380.00 59623 _ M g76A
245VO0 Sold C261GI 600 11 11631M 23,26250 192.60 - 23,069.13 (1,356.22)
7/15.00 Sold CNIGI 0 11 116.1750 6905.W 577.80 - 69,09252 88.17
245100 Sold QCOM 325 40 135 6290 27,125.00 212.69 26,91141 (IOMO- 4)
245p0 Sold QCOM 0 40 135.5625 44AS731 345.60 - 43,70838 (16,349.01)
22 00 Bought ORCL 35W 60.6250 30,31250 - 351.82 (30660)
22 00 Bought XLNX SW 673125 33,66625 - 967-02 (34,025.62)
224.00 Bought BGEN 5011 124.8750 6x.43750 - 428.00 (62,86985)
Z24)W
.rareesp Ba it
ewa. CEGE
gyn..--?n 1000
eaer?e..,m
rrn 36.0000
nd..aw 36AW.00
.--..e.
.a<.w.
'??f'r?wreli 41K16
m
'- _?36,l1651)
+
Feb-00 ToW
Avg Days Held
39
2.3 Transactions _
5,263.55
2,415.60
2,524.29 (171,052.0) Qu
(49,57736)
Attorney Work Product
Privileged and Confidential Page 2 of 5
Kroll
Gekas - Morgan Stanley Dean Witter
Analysis of Monthly Transactions and Charges
Schedule 2
NOW Thwe shaded in yellow are 2 for 7 stock splits.
Appro. Days Maesin Realised
eS?tlement Date I= Svv&oI fthom IW Me FARIAM CON-ft gm w 12M C arol thou)
39/00 Bought C MN 100 1763000 17,66010 - 101.66 (17.7n.66)
3/1/00 Bought aEN 300 IMI250 35,22510 - 203.30 (A4300)
V/00 Bought CMN 600 176.7500 53,92519 - MC95 (53.M.)
319/00 Bought PALM 100 137.0000 13x0010 107.00 - (130936)
-WAD Sold BGEN 0 12 106.1150 531062.50 - 42510 5$630.35 (10,237:47)
3114 Sold SUNW 0 84 993750 29,UM - 256.50 28,95x37 00M
3t14W sold HGSI 1430 39 173.0000 *ADM 399.92 - 65,797.78 30109.50
3114+00 Sold H(m 0 28 171.7500 2471n50 IA29-n 2W192.12 39,14326
3117110 Bought A 400 131.9375 5ZMAO 385.20 - (5416a36)
3117/00 Bought I= 400 136.!375 54'.175.00 34140 - (54,919415)
3)17/00 Bought ORCL 39W 82.1150 32mm - 775.82 (341x5.17)
3/17100 Bought ORCL 44M 814375 41,218.75 - 344.76 (41,363,51)
3/17100 Bought QSFr 400 I50.6895 77,275.00 38520 - g4662.36)
3/17/00 Bought YHOO 400 177AM 710510 - 385.20 CnA62 X)
3/17/00 Sold CEGE 800 22 316250 61625.00 - 85.44 6A39.35 (849.96)
3117/00 Sold CEGE 400 22 32.3750 17x950.00 - 170.86 IZ77634 (1,802.26)
V17/00 SON CEDE 0 22 325625 13126.00 - 170.88 12,86369 (1724.91)
347/00 Sold QSFr 0 10 1511000 60AMM 385.20 - 60,010.43 (1$662.12)
311 00 Bought CSCO 1795 80.7500 48 ' 0.00 - 530.46 (48,9112M)
329Y00 Bought MSTR 100 124.9063 12,490.63 109.47 - (IZ60Z45)
3f194n0 Bought MM 200 125.0000 174WJW 109.47 - (17.60947)
372%W Bought MSTR 650 124.9375 56,221.88 49161 - (56;,714.49)
3121110 Sold A 0 12 117.1875 :6,875.00 35520 44485.86 (6,676.67)
M"-W Totsl Avg. Days Held 28 23 Transactions 4,53115 3,750.12 3,MAI (44,891.56) 40,245.90
VIWOD Bought 941X 600 853625 51,337.50 54622 - (51,856.07)
4110100 Sold CIEN 300 34 95.6250 28,65130 - 28590 25,395.29 (1A,787A1)
4/1000 Sold KIM 300 12 65.9375 24,125.13 32682 - 23,795.15 (20,31560)
4119400 Sold LIEN 0 43 85.62550 2568750 256.80 - 25A27A9 (77,902+46)
4/19400 Sold ENB.X 0 9 413000 2000.OD 343.74 - 24 3,05 (27,332.99)
41190 Sold JDSU 0 33 80.0000 3210(L00 34210 - 31,664,18 (23.26537)
4/19400 Sold ?4sm 0 21 36.0000 10,599.90 176.91 - 1062038 (27,189.25)
4119/00 Sold ORCL 2900 320 62.3750 93,56230 - 61112 92,94726 73164.56
41190 Sold ORCL 0 56 611ZO 180,16250 1,18335 178,970.79 90434
411910 Sold XL,NX 0 56 595000 29,750.00 - 37246 29,374.19 (4.661.43)
4119AD Sold YHOO 0 33 12DAM 48,MOA0 - 342.40 47,903.64 (23,M5.91)
VAM Sold AMAT 0 197 84.6250 120,167.50 - 911.97 119,249.17 7054336
42%W Sold CSCO 0 22 603750 105,554.75 - 84333 107,704.95 2410513
41AW Sold PAI.M 0 44 30.1150 3,01250 67.09 - 2,942.95 (10866.40)
OWO Bought NOK 400 49.9375 19,975.00 209.66 - (20,267.01)
41LW0 Bought NTAP 200 552300 IIA50AD 753.12 - (11, 147)
424/00 Bought NTAP 400 553000 11100.00 153.14 - (17,25414)
VAW Bought RBAK 400 65.7500 27,500.00 342.40 - (21,844.75)
41:1:0 Bought SPYG 400 29.8125 11,97310 - 197.95 (12,125.33)
424110 Bought V1GN 400 49.x625 19,525.00 - 287.95 (2017530)
4/AW Bought VRSN 100 131.5625 13,15625 - 85.60 (13,741.85)
MAW Bought VRSN 200 131AM 13,16250 - 85AO (13,218.10)
4/00 Bougttt VRSN 400 1313000 26,300.00 171.20 (26A7355)
4113400 Bought VRTS 400 205M M 42.100.00 - 34240 (4Z44CM
4244 Bought CPA 500 74MW 37,125.00 40533 (31,5 .65)
4/240) Bought ORCL SW 71.1250 3556250 - 400.74 (35963399
VAM Sold NOK 0 2 50.1250 20050.00 29D.24 19,756.74 (51027)
Apr-00 Tote! Avg. Days Held 63 27 Transactions 3,86517 5,954.80 2,030.45 419,691M (17,652.42)
Attorney Work Product
Privileged and Confidential Page 3 of 5
Kroff
Gekas - Morgan Stanley Dean Witter
Analysis of Monthly Transactions and Charges
N
om
Appx. Days
ScidemwaDal m Mope Symbol Ralmot HM 1 PdockW
501100. Bought PENN 100 124375 1,263,75
501.010 Bought PENN 200 12.8750 1,287.50
AM Bought PENN 300 12.9375 1,293.75
501100 Bought PENN 400 13.0624 100625
3w Bought PENN 500 13,1250 1,31250
501/00 Bought PENN 600 133175 1,331.25
501N0 Bought PENN 800 12.6250 4525.00
5J1/00 Bought PENN 1000 126875 2,-W.50
wm Bought PENN 12110 17.8125 2.562.50
3w Bought p1m 1500 125625 3,768.75
%w Bought PENN 19M U30W 5AM.00
50AW Bought PENN 2300 12.75W 5,100.00
501100 Bought PENN 2700 13.0000 5AWA0
501100 Bought PENN 34M 123750 BA6230
501100 Bought PENN 42M 13.1875 10,460.00
501!00 Bought PENN 5490 13.2500 15AMAD
501100 Bought PENN 10000 13MM 61=.OD
501100 Sold CRA 0 6 70.0000 35AOOA0
5/1100 Sold NEAP 700 8 63.0625 ]x.61250
54= Sold NTAP 0 8 643124 17.86250
Nm Sold ORCL 0 6 73.4375 36,71&75
50600 Sold RBAK 30D 8 65.6250 6,56250
501100 Sold RBAK 0 8 6525W 19,695.00
Um Sold SPYG 0 8 495625 19,825.00
52100 Sold VIGN 0 8 435000 17AMOD
wm Sold VRSN 0 7 110AG75 44,025.00
511100 Sold VRTS 0 7 96.6250 38,6MA
50m Boushl NOK 1000 57.0000 57,000.00
Schedule 2
7bose shaded in yellow are 2 for 1 stock apllts.
Margin
LAMM ILMAme Ink m TAN G ahr/dAm)
1430 - (1,258,05)
1430 (1,301.80)
1430 - (1,30805)
1430 - (1,321
1430 - (1,32680/
1430 - (1,34555)
28.60 - 01.353,60)
2860 - (20566.10)
2860 - ($591.10)
4290 - C3,MIAb)
$7.19 - (5AS919)
57.20 - (5,15920)
57.19 - (5,257.7.19)
100.26 - (8,765.11)
11437 - (10,66637)
17155 - (1607155)
65962 - (62,18262)
39LM - 34,598.47 (7,,93921)
165.80 - 120443.92 1,238.45
165.81 - 17,696.27 1443.13
- 40635 36,306.82 343.23
8617 - 6,47811 (483.08)
252.49 - 191319.50 (1,564.06)
- 78995 19,534:03 7AM70
- 26034 17AX73 0!7/857)
34240 - 43,678.78 (9.284.72)
- 342.40 38,34:1.96 (4,140.79)
w12100 Sold PENN 84M 8 120000 19,200.00 36535 - -- 18,83166
(1.015.89)
SAIND Sold PENN 0 9 112500 98,700.00 1,17939 97,514.97 4,375
503060 Bought A 700 59MW 4101250 436.86 - (47.35171)
513080 Bought ELON 700 553750 38,76250 40032 - (39,166.17)
5141 w Bought ORCL 700 63.4375 4006.25 - 460.17 (44,868.77)
5 rAw Bought QCOM 100 76.8438 7x684.38 72.15 - (7,76653)
5032'00 Bought QCOM 300 76.1250 15,225.00 144.29 - (151371,64)
'.y3m Bought QCOM 700 76MW 30,750.00 288.61 (31,038,61)
May-00 Total Avg. Days Held 8 38 Transactions 7,389.76 11757M 279A2 (17.789A0) (31,14170)
62.00 Sold QCOM 0 3 64.8125 45,368.75 406.73 - 44,958,15 (9,208,63)
61W Bought CLGC 500 37.0000 18,500.00 210.77 (16,713.12)
6115,100 Bought G GC 1000 392500 18.625.00 210.75 - (IOAM,7b)
62100 Bought mm 1000 70.75(10 70,750.00 61174 - (71,365,06)
6x11100 Bought RMBS 100 892500 8,925.00 7032 - (8,99967)
6mw Bought RMBS 30D 892969 17,85938 140." - (18AW.OZ?
622!00 Bought RMBS 500 89.312'1 17,862.50 140.64 - (18,003.14)
6012/00 Bought RMBS 1000 895000 44,750.00 351.60 - (45,101.60)
629!00 Bought RMN 1500 1155625 57,781.25 468.49 - (58,25209)
6t19N0 Bought RMBS 2000 116.6875 58,343.75 46850 - (58,81225)
WAND Sold NOK 0 57 51.9375 51,93750 554.06 - $1,37935 (6,169A3)
630+00 Bought AAPL 1000 55MOW 55,000.00 53633 - (55,638,6$)
6%00 Bought NXTL 1000 63.1250 63,125.00 575.75 - (63,703.10)
brxbw Sold ELON 500 31 59.4375 11,88750 127.65 - 11,757.10 567.05
63M Sold ELON 0 31 59MW 29,750A0 319.08 - 29x429,93 1,454.81
firAw Sold CLGC 0 15 36.7500 36,750.00 447.81 36,298.61 (lo2%26)
Jun-W Total Avg. Days Held 27 16 Transactions 5,641.86 - 1,021.67 (261,49937) (14,606.06)
Attorney Work Product
Privileged and Confidential Page 4 of 5
Gekas - Morgan $tanley Dean Witter Schedule 2
Analysis of Monthly Transactions and Charges
' NO Those shaded in yehlow an 2 for 1 uNodc splits.
Appx. Vays margin Realized
Settleakrk Date I= >ndmi Bdmm WH Zft PlWdjW caum Chance interest IQw ci alot
7AQW Donut SS11 1000 sclim 84,125A0 677.63 - Nom)
' 711000 Sold AAPL 0 10 513625 six= 519.66 - 51738.77 (41499.91)
711000 Sol! NXTL 0 10 59.6x:50 59AMM 356.77 - 59AN49 (04121)
7/1200 Sold RM88 1730 20 IO1.s125 25AS113 27285 -
25.377.08
?.67939
7114110 Bought CY low 4434m 4456E30 4" (457505
7/14110 Bought VSH 1000 39.8125 3971250 46266 - (40=31)
7114+00 Soli RMBS 750 22 BMW 89,750110 74896 - 88, M7 (7,M.q
7AWW Soli wn 600 9 85.6250 34,250110 291.14 - 33,91536 3337
7/IWW Sold ssn 0 9 85.6875 SIA230 436.76 - 30;974113 91.04
7)2WW Bought I" 800 3SAM 25AWAD 25242 - (11
7322)
7/15+00 Bought ISLD 2000 35:5625 42.675110 37858 - ,
(43755.93)
7/37M Sold CY 0 13 4SAM 45AZZM 490,86 -
45.130.26
79.77
7/17M Sold MD 17M 2 3031M 9793.75 WAS - 8,983.61 (1"
7/17/00 Sold
ORCL 0
58
76MM
53,/5.00
535.15 -
52J3 M -
7,96693
7)7/00 Sold RMBS 0 28 87.7500 65,61250 630.66 - 66,177,29 (22,761.01)
7)2WW Sold MBDI 400 36 59 8730 35,925.00 43644 3%48M (7.334.041
jul-N Total Avg. Days Held 20 16 TnvAwdom 7IM74 - 2„LS947 274SUM (37,9 ,37)
VAW Sold IS4.D 1000 8 26.x700 18,375.00 2%M - 1AW5M (777042)
WAN Sold VSH 0 19 29.93'/5 29,93750 415.18 - 29,518.97 (1073s,M)
WAW Sold A 0 65 403750 29,26230 379.63 - 77,86157 (141470.14)
tVAW Sold ISLD 800 9 27.9375 5156750 80116 - 5704.90 (1,BllAy)
VAW Sold ISLD 0 9 20A M 24=00 320.26 - 2 078.99 (6,624.96)
NAW Sold MBDI 0 42 60.4375 24,17500 321.69 - 2385015
Aog-00 Tohl Avg. Days Held 25 7 Tun aetiom 2113449 75.71 93,236,9{ (9kVIAQ
11/1W Sold BVSN 0 81 31.0000 31AMM 419.90 30776 71 (1796 1
Nov-W Total Avg. Days Held 81 1 Transaction 419.90 13A9 30,576.71 (1796.76)
Grand Total Avg- Daps Held 39 238 Tnamaetions 4SA53.85 2426244 20;66633 (89,466.47) (89 46647)
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Privileged and Confidential Page 5 of 5
Ufl"0-17
Gekas - Morgan Stanley Dean Witter Schedule 3
Analysis of M onthly Transactions by Stock
NoW.. 2 for I Spats
App-v- Days Rs allud
Set<icUl"IDate I= Sy=b t QbL Ida= U- P? Pdmdgd lei Gah JQAsl
IV2W 9 Bought A 50 30 50 30ADW 1,500.00 (1.'30DAm
12/15!99 Sold A 50 (50) 0 22 45.8W Z,290AS ?.232.73 732.73
115100 Bought A 650 650 650 76MM 49,968.75 (SOAG6.89)
2/40 Said A 650 (660) 0 30 67M M 44,118.75 43,639.69 (03720)
' 3117/00 Bought A 400 400 400 131.9375 %o"75AO (53.16M
329/00 Sold A 400 (40% 0 12 117.1875 46An= 46.486.88 (606.67)
*34M Bought A 700 700 700 59.8750 41,912.50 (42.361.71)
$/3100 Sold A 700 (700) 0 65 40.3750 28,262.`0 27,88157 ( 14AN0.14)
9/7x199 Bought AAPL 3W MO SW 63.3750 31AW.50 ( )
WvW Sold AAPL 210 (210) 290 100 10!.1250 21,86625 21.656.66 8,208.5!
2/7/00 Sold AAPL 290 (290) 0 132 IOL4375 29AI6.88 29ASC74 IOA8278
6/.i4+OD Bought AAPL IOW 1000 IWO 55AOM 55/000.00 (56538.68)
_ 7/!4/7/7 Sold AAPL 1000 {1000) 0 10 515623 5102.50 5],E 77 (4,449.91)
614199 Bought AMAT 310 310 310 54.8750 17AIL25 (19,210.86)
10%" Bought AMA? 400 400 1420 79.7SW 31,100.W (31A"2*
_ VAM Sold AMA? 1420 ("A 0 197 84.6250 120,167.50 119".17 70,593.56
7120099 Bought AWN 158 158 316 126255 19,9!'150 (20,078.25)
1414199 Sold AMM 316 (316) 0 70 75A625 23,719j5 23AW98 3,308.73
IW6" Bought AWN 3W 300 300 77AM 23,2 30 (?3;546,65)
11/3/99 Sold AM2lV 300 (300) 0 28 70.8750 21,262.50 214026'1 (2.544.01)
17115 99 Bought AMZN 5W 500 SW 1063750 53,18750 (53,617.85)
17/17199 Sold AWN 200 (200) 300 2 98.4375 19,687.50 19,513.29 (1,933.85)
IAW
... Sold AM2N 3W (300) 0 21 773125 23,19315 22,933.82 (9.23089)
7f(t199 Bought AOL 102 102 102 116MW 11,921.25 (11,998.00)
1W14199 Sold AOL 102 (102) 0 70 108.0625 11,07238 10,90855 (1489.46)
I?1" Bought AOL 325 375 325 79.1875 75,!35.94 (16425.28)
17115199 Bought AOL SW 5W 825 87.3750 43,68750 (44,117.85)
I/5Y00 Sold AOL 325 (325) NO 28 753750 2lA%M 21,189.16 (1,836,12)
214100
. Sold AOL 5W (50% 0 51 55.7500 27,875.W 27,5131% (16,604.29)
1416199 Bought ATHM 400 400 400 44.1875 17,675.00 (17 940.61)
141"
. Sold AnW 400 (400) 0 2 428125 17,12500 16,864.87 (1475.94)
VA" Bought BGEN 5W WO 500 124MM 62ANM (62,867.55)
3/7/00 Sold BGEN 500 (500) 0 12 106.1250 SSA62M 52,630.38 0%,297.47)
11/14100 Sold BVSN 1000 (IWO) 0 81 sl.wou sl uvu.w su,7/W L %WMIvt
2flA/00 Bought CAGE IOW IOW 1000 36.0000 36AMAD (36A46,51)
3!17/00 Sold CEGE 200 (200) SM 22 32.625) 6=A0 6ANJ5 ($OA
3!17/00 Sold CEDE 4W (400) 400 22 32.3750 12,950.00 12,776.34 (1,802;26)
3113N0 Sold CAGE 400 (400) 0 22 325625 13426.00 11„853.69 (1724.91)
3/1100 Bought CON 100 100 100 1765000 17,660.00 (17,751.66)
3/7/00 Bought CMN 200 200 300 176.1250 35,275.00 (35A30.63)
3!1/00 Bought C1EN 300 300 6W 176.7500 53425.00 (53.32995)
4/1WOOO Sold C1EN 300 (300) 300 34 95.6250 28,687.50 28395.29 (?,4,787.01)
4{19/00 Sold CSEN 300 (300) O 43 85.62550 25,687.50 25AW.49 (27,902.46)
Attorney Work Product
Privileged and Confidential Page 1 of 5
Kroll
Gekas - Morgan Stanley Dean Witter Schedule 3
Analysis of Monthly Transactions by Stock
Note: 2 for 1 spats
Appx. Days Realized
Settlement Date
12500
1135M I£
Bought
Bought Symbol
OdG1
C WGi
100
200 ? Manor
100 100
200 300 Held l?
121.2500
12LSM PrJudyal
L$,12M
24,2.15.00 Tobd
(12„207.60)
(?rk=.50) Gain/ aria)
2/!100 Bought C WGI 200 200 SW 112.7300 22 5?MM M 72M
2AW
' 2I7w Bought
Sold C WGI
C WGI 300
200 300
(200) SW
600
21 1120875
1163125 33,806.25
23,26250 (34,065.40)
23,064.13
(1,356.22)
2/15100 Sold CMG1 600 (600) 0 11 116.1250 69A"m 6902.52 88.17
47400
5/!/00 Bought
Sold CRA
CRA SW
500 SW
(500) 500
0
6 74.2500
70.0000 37,1"
35,000.00 (37
34,398,47
(2„93721)
44/99
711N9
78499
IW499 Bought
Bought
Bought
Sold CSCO
CSCO
CSCO
CSCO 162
275
187
187 162
275
187
(187) 324
599
786
599
0 106.4375
61.9375
633125
68.6875 17,323,86
17,03281
111839.44
12,84156 (17x454.63)
(17,259.48)
(111970.19)
12,60.18
78.99
1Q1W99
1/16x00 Bought
Sold CSCO
CSCO 400
400 400
(400) 999
1198
92 67.1375
106631255 26,97500
4$,525.00 (27,319.75)
42„178.83
1409.08
3FAW
VAM Bought
Sold CSCO
CSCO 600 600
1798 (1798) 1798
0
22 80,7500
60.3750 48,450.00
108,554.25 (48,982.81)
107,70!.95
24AM03
7/14M
7/!7/00 Bought
Sold CY
CY 1000 1000
1000 (1000) 1000
0
13 44.5625
45.6250 44,562.50
451625.00 (45,0,50.'%
45,130.26
79.71
4/4/99
111499 Bought
Sold DELL
DELL 515
515 515
(515) 515
0
153 33.4375
40.500) 17,220.31
20,857.50 (17,433.80)
20,531.15
3,09735
14W
YxVw Bought
Sold ELCO
ELCO 500
500 500
(500) 500
0
15 32.5625
20.6250 16,281.75
10,312.50 (16,539.45)
10,133.68
(6140577)
SAM
43M
430100 Bought
Sold
Said ELON
ELON
ELON 700
200
500 700
(200)
(500) 700
500
0
31
31 55.3750
59.4375
59.5w 38,762.50
11,88750
29,750.0) (39,165.17)
111757.10
29,429.93
567.05
1,454.81
444W
4/19100 Bought
Sold EMLX
EMLX 600
600 600
(600) 600
0
9 85.5625
413000 51,337.50
24,900.00 (51,886.07)
24,553.08
(27,33299)
IVA"
- -12/6199 - Bought
---Sold ETYS
E7'YS 506
506 506
(506) 506
0
6 69.1250
52.7300 34,977.25
26,69150 (35,343,67)
26.74
(90793)
41.4/00
W w
4'XYD0 Bought
Bought
Sold GLGC
GLGC
GLGC SW SW
500 SW
1000 (1000) 500
1000
0
LS 37.0000
37.2500
36.7500 MAMA)
18625.00
36,730.00 (18,713.12)
(18,835.75)
36,29801
(1,250,26)
4499
7!1199 - - Bought
--Sold HDI
HDI 375
325 325
MS) 325
0
27 SL6250
53.7500 17,103.13
17x468.75 (17,309.61)
17,223.90
(85.7
7/400
7!1!00
2/Lw
711.`00
3114+00
311400 Bought
Bought
Bought
Bought
Sold
Sold HG51
HGSI
HGSI
HGSI
HGSI
HGSI 500 500
300 300
450 450
580 SW
400 (400)
1430 (1430) 500
800
1250
1830
1430
0
9
28 95.8750
101.0000
159.5000
161.0000
173.0000
172.75110 47,93750
30,300.00
71,775.00
93,380.00
69,200.00
247AW-W (48,367.85)
(30.559.15)
(72,239.91)
(93,976.23)
68,797.78
245,592.12
0,10330
39,14316
784"
IW4199 Bought
Sold ISM
IBM 92
92 92
(92) 92
0
70 1295000
121.7500 11,914.00
11,201.00 (11,98055)
11,101.97
(878.50)
IIA*99
12/1399 Bought
Sold IFOBX
IFOBX 1000 1000
1000 (1000) 1000
0
24 27AM
31.5900 27,830.00
31,590.00 (27,830.00)
30,198.50
2,368.50
IW6199
lzq. !9 Bought
Sold INTC
INTC 400
400 400
(400) 400
0
70 74.4375
72.6250 29,775.00
29,050.00 (30,119.75)
26,704.28
(1415.47)
Attorney Work Product
Privileged and Confidential Page 2 of 5
Kroll
Gekas - Morgan Stanley Dean Witter Schedule 3
Analysis of Monthly Transactions by Stock
Note 2 for 1 splits
App-Dap Realised
Settlement Date I= S ymm Qb1j. Hold , p? Prinftd JmW G ate! floral
,11/4199 Bought OLD 200 200 WD 64.2500 12.860.00 (1$.999.13)
11/!?99 Bought MD 410 410 610 64.3790 26,393.75 (2604.62)
1243199 Sold ISLD 610 (62% 0 39 1233750 75,258.75 744"03.82 35A70.07
7fAW Bought LSLD ODD 800 SW 356250 28,500.00 (78,75242)
7tA W Bought MD 1200 IWO 2000 3519625 42,675.00 (43,068.93)
71?AO Sold ISM 300 (300) 1700 2 30.3125 9,93.75 84433.61 (1,811M)
VAU Sold mm 700 (7007 1000 8 762300 18,375.00 18,075.83 (7,070.42)
4w sold mm 200 (200) 800 9 27.9375 5,587.50 5,50190 (1,671.09)
WNW Sold ISLD 800 (8007 0 9 28.0000 24400.00 27.078.99 (6,624.96)
3A7/00 Bought JDSU 400 400 400 136.4375 54,575.00 (54,919.75)
09/00 Said JDSU 400 (400) 0 33 80.0000 32.000.00 31;66118 (xix5m)
8/18199 Bought LCOS 200 200 200 37A625 7,U2..50 (7491.04)
SAW" Bought LCOS SW 800 IWO 36.9375 29,550.00 (29,666.54)
IW4199 Sold LCOS 1000 (1000) 0 47 496250 49,6MN 49,446.95 IIA39.37
1W6199 Bought LCOS 400 400 40D 495= 191800.00 (20.090.01)
2218199 Bought LCOS 500 500 900 863225 43,156.4 (43,586.60)
216100 Sold LCOS 400 (400) 500 92 81.0000 32,400.00 32054.17 11,964.16
21/00 Sold LCOS SW OR 0 54 742750 37,137.50 37A24.06 (646254}
6/4/99 Bought LU 30D 300 300 563000 16,950.00 (17,13736)
7t2699 Bought LU 171 171 471 68AM 11,777.63 (11,90838)
1W4199 Sold LU 171 (171) 300 122 643125 10,997.44 loxa86 (1,104.52)
11/4/99 Sold LU 300 (300) 0 101 65.0625 19,518.75 19,258.94 2„121.38
2AQW 101m 500 500 500 13.0000 6,500.00 (6,637
6=0 Bought M= 10M 1000 1000 70.7500 70,750.00 (71,368.09)
7!1.$0 Sold MM 600 (600) 400 36 59.8750 35,925.00 35,185.01 (7,334.04)
813/00 Sold MM 400 (400) 0 42 60.4375 24175.00 2300.15 (4,695.89)
7.014+99 Bought MSFT 125 125 I25 95.3125 11,914.06 (12.02254)
IW4199 Sold MSFr 125 (125) 0 70 90.9375 11,367.19 11,20728 (81526)
IV&99 Bought MSFr SW SW SW 93.0675 46,53125 (46,961.60)
I AL % Sold MSFr 100 (100) 400 20 SC8125 8,481.25 8 393.01 (999.31)
171/99 Sold MSn 400 (400) 0 29 89.9375 35,975.W 35,629.6 (1,940.23)
3/29100 Bought MSTR 100 100 100 124.9063 12„490.63 (12,602.!5)
MAW Bought MSTR 100 100 200 125.0000 17,.5W.00 (12„609.47)
4/!9/00 Bought MSTR 450 450 650 124.9375 56,221.88 (56,714.49)
4110/00 Sold MSTR 350 (350) 300 12 68.9375 24,128.13 23,798.15 (20,318.60)
09/OD Sold MSTR 300 (300) 0 21 36AOOD 20,800.00 10,620.38 (27,189.28)
4x1,4100 Bought NOK 400 400 400 49.9375 19,975.00 (20,267.01)
VAM Sold NOK 400 (400) 0 2 50.1250 20AMOO 19,756.74 (510.27)
.sw Bought NOK IWO 1000 1000 57AM 57AWA0 (57,548.38)
429/00 Sold NOK 1000 (1000) 0 57 51.9375 51,937.50 51,37935 (6,169.03)
VAM Bought NTAP 200 200 2W 55.2500 11,050.00 (11,206.47)
VAW Bought NTAP 200 200 400 55.5000 11,100.00 (11,733.14)
5?/1JW Sold NTAP 200 (200) 200 8 63.0625 12,61150 12,.443.92 IAX45
y00 Sold NTAP 2W (700) 0 8 64.3175 12,86250 12,69627 IAO.13
6f3Q?00 Bought NXTL 1000 1000 IOW 63.1250 63,125.00 (63,703.10)
711WOO Sold NXIL 1000 (IOW) 0 10 59.6250 59,625.00 59,061.89 (4,641.21)
Attorney Work Product
Privileged and Confidential Page 3 of 5
T
Gekas -Morgan Stanley Dean Witter Schedule 3
Analysis of Monthly Transactions by Stock
Note: 111111 2 for I spats
Appal Days Realized
Settlement Date I= SAO! Qtr., 19JAM Held prif Principal I-OM Gain/ (Load
4/4199
' Bought ORCL 1000 1000 2000 25AS75 2SAW30 m.976•q
1/1600 Bought ORCL 300 300 23W 60.2500 18,073.00 (14,33{.25)
7AMO Bought ORCL 706 700 3000 55.7:100 38,675.00 (39,109.72)
zwo Bought ORCL 500 SW 35W 60AM 30,31250 (30;666.67)
• 3/17/00 Bought ORCL 400 400 39W SLIZO 324OWN (33,178.17)
3117AO Bought ORCL 500 500 44W 824375 41,218.75 (41,56331)
4119/00 Sold ORCL 15W (1300) 29W 320 623750 93NO-W 92,917,26 73,16456
41191100 Sold ORCL 2900 (2900) 0 56 621250 180,162.50 178070.79 9,67434
4x14+00 Bought ORCL 500 500 500 7LUM 35,562110 (35^539)
wm Sold ORCL SW (S00) 0 6 73.4375 36,718.75 36,306.42 300
59M Bought ORCL 700 700 700 63.4373 44,4062.5
)x17/00 SOW ORCL 700 (700) 0 58 7625W 53,375.40 51,835.72 7.%&95
3/7/00 Bought PALM 100 100 100 137.0000 13,70000 (13,809 3?
4/1m Sold PALM 100 (100) 0 44 30.3250 MUM 2,942.95 (10,466.40)
511100 Bought PENN 100 100 100 124375 1,213.75 (31258.05)
5?1/00 Bought PENN 100 100 200 128750 1128730 (1,301.80)
5I1J00 Bought PENN 100 100 300 12.9375 1,293,75 (1,306.05)
51!/00 Bought PENN 100 100 400 13AM 1,30625 (1,320.56)
311100 Bought PENN 100 100 500 13.1Z O 1,31250 (lAzfijm
511100 Bought PENN 100 100 600 13.3125 1,331.25 (1,34556)
511/00 Bought PENN 200 200 800 12.6250 2,525.00 (2,563.60)
512100 Bought PENN 200 200 1000 126875 2,537.50 (2,566.10)
Vm Bought PENN 200 200 1200 12.8125 256250 (2,59230)
5/1/00 Bought PENN 300 300 1500 12562,5 3,768.75 (3,81IA5)
vim Bought PENN 400 400 1900 12.5000 5A0 M (5,067.19)
5111D11 Bought PENN 400 400 2300 12.7500 51100.00 (5,15720)
51200 Bought PENN 400 400 2700 13.0000 5,200.00 (5,257.19)
511/00 Bought PENN 700 700 3400 1137M BA62M (8,765.11)
511/00 Bought PENN 800 800 4200 13.3875 10,00.00 (10.66437)
54/00 Bought PENN 1200 1200 5400 13.2500 151900.0 (16A715S)
5/1!00 Bought MQN 46M 46W 10000 133750 61,525.00 (62,18162)
5/1Q100 Sold PENN 1600 (1600) 8400 8 120000 19,200.00 18,831.66 (11815.89)
5111100 Sold PENN 8400 (8400) 0 9 11.7500 981700.00 97,514.97 (14,37596)
1/6200 Bought QCOM 200 200 200 183.9375 36,787.50 (36.981.97)
114'00 Bought QCOM 325 325 575 183.8125 59,739.06 (60AW 39)
WLYM Sold OCOM 200 (200) 325 40 135.6250 27,173.00 26,911.41 (100034)
2/15100 Sold OCOM 325 (317) 0 40 135.5625 44,MAI 43,70838 (16,3!9.01)
531400 Bought QCOM 100 100 100 76AM 7,684.38 (775633)
-V3Qw Bought QCOM MO 200 300 76.1250 151225.00 (15,371.64)
313M Bought QCOM 400 400 700 76.8750 30,750.40 (31,038.61)
4x1/00 Sold QCOM 700 (700) 0 3 64AM 45,368.75 44,958.75 (9,ZD8 63)
3/17100 Bought QSFr 400 400 400 180.6875 77„275 W (72„66256)
- - $/17100 - - - - Sold QSFr 400 (400) 0 10 1520000 60A00.00 60MILAS n2/A52171
4114100 Bought RBAK 400 400 400 68.7500 27,500.00 (27,844.75)
6/ 100 Sold RBAK 100 (100) 300 8 65.6250 6,5625(1 6,478.11 (483.08)
511100 Sold RBAK 300 (300) 0 8 65ZW 19,575.00 19,31950 (1,564.06)
6117m Bought RMBS 100 100 100 89-WW 8,425.00 (8,997.67)
4/17/00 Bought RMBS 200 200 300 892969 17,659.38 (18AW.02)
6/1J= Bought RMHS 200 200 500 893125 17,86250 (18;003.14)
fim" Bought RMBS 500 500 1000 89.5000 44,750.00 (45,101.60)
419/00 Bought RMBS 500 500 1500 115.5625 57,781.25 (58,25209)
6x19/00 Bought RMBS 500 500 2000 116.6875 58,343.75 (54,81225)
7/11/00 Sold RMBS 250 (250) 1750 20 101.812.5 25,453.13 25,177.08 2,679.39
7/14100 Sold RMBS 1000 (1000) 750 22 89.7500 89,750.00 88,995.67 (7,735.12)
7/17100 Sold RMBS 750 (750) 0 28 87.7500 65,81230 65,177.29 (22„761.01)
Attorney Work Product
Privileged and Confidential Page 4 of 5
MID11
Gekas • Morgan Stanley Dean Witter Schedule 3
Analysis of Monthly Transactions by Stock
Not. 1 1? ? Ia ll 111; BMW 2 for 1 splits
Appu. Days R ealized
Settlement Date rm SSJORM Q&- a Udd Eft Prjpdaw I( Gai n/ fIAMI
Ow Bought SFYG 400 400 400 29.8125 111925.00 (IXItS.33)
Nm Sold SPYG 400 (4/003 0 8 03M 19,825.00 191534.03 7A06.70
MOD Bought SSII 1000 1000 1000 SLIM) 8411?50 (84,804.98)
7A%W Sold SSTI 400 (400) 600 9 85.6250 34,250.00 3319:8.36 33.37
7/19/00 Said sm 600 (600) 0 9 856873 S1AMN) 30914.03 91.04
12/!4199 Bought SUNW 500 500 500 79.1875 3903.75 (40.016.40)
1WI7199 Sold SUNW 200 (200) 300 3 75.5625 15,112.50 14938.44 (1.068.72)
3/1/00 Sold SUNW 300 (300) 0 84 97.3730 29,21250 28,952.37 4,94253
614199 Bought TLAB 295 295 295 57950) 17A36.25 (17.01)
1113199 Sold MAD 295 (295) 0 752 624375 ISA19A6 18,159.29 932.28
77/!4,99 Bought TYC 1000 1000 1000 VA375 VAV-50 (27,835.98)
117100 Sold TYC S00 (300) 500 24 36.250) 18,125.00 19,862.49 3,94450
VAN Sold TYC 500 (S00) O 43 38.8125 19,40625 19,11121 5,193.82
1x14MO Bought VIGN 400 4110 40D 495625 19,82.5.00 (20,115.30)
5/1/00 Sold VIGN 400 (400) 0 8 435000 17,400.00 17,136.73 ($,978.57)
VAW Bought VRSI 100 100 100 1315675 13,15653 {13,24185
VAW Bought VRSN 700 100 200 131.6250 13,16250 (13,248.10)
4PAW Bought VRSN 2)) 200 400 1315000 26,300.00 (26A73.55)
55/1/00 Sold VRSN 40D (400L 0 7 110.0625 44,025.00 43,678 78 22W72)
040) Bought VRTS 400 400 400 105.2500 42,100.00 (42,444.75)
5511/00 Sold VRPS 400 (40% 0 7 966250 38,660.00 38,303.96 (4,140.79)
7/14/00 Bought VSH IWO 1000 IOOD 3933 391812.50 (40,27751)
(VAW Said VSH 1000 (loon) 0 19 29.9376 29 93750 29,518.97 (30,7586/1
1/5'00 Bought X1NG 3D0 500 500 286250 101250 (14,548.2
V2WOD Bought MG 100 100 600 42.8750 428750 (4,34790)
V WO Bought )(ING 100 100 700 42.9375 4,293.75 (4,351.80)
V2WO0 Bought )ONG 100 100 800 412300 4,325.00 (4,363.05)
VA W Bought )MG 200 200 1000 43.0000 8,600.00 (9,716.10)
2/40 Sold ANG 500 (500) 500 30 36.4375 18,218.75 18,006.16 3,457.88
W41W Sold X1NG 500 (500) 0 15 36.8125 18A06.25 16,196.01 (302.84)
211 00 Bought XLNX 500 500 5W 67JIM 33AM40 V"AUD-")
VIww Sold XLNX 500 (500) - 0 56 59.3000 29,75t/.D0 29,374.19 (401.43)
3/17/00 Bought YHOO 400 400 400 177.6875 71,075.00 (71,46255)
4119/00 Soli YHOO 400 (400) 0 33 120.6250 48,250.00 47,903.64 (23,558.91)
Average Day s Held 39 Totals (89,4(s6.47) (89,466.47)
Attorney Work Product
Privileged and Confidential Page 5 of 5
KW,
Gekas - Morgan Stanley Dean Witter Schedule 4
Analysis of Mouthly Balances
oci-" Dec-"
Syme to Sham No value Sham hIS Value Shm Price Ysta On= Aft YAM
HDI
HGSI
TOTAL 357,2%.63 422,953.38 579,706.63 581091.13
Margin Acct 156,376.32 1911294.90 234,230.30 304 497.42
Capital Acct 200,92031 231,658.48 345,176.33 276,593.71
Attorney Work Product
Privileged and Confidential Page 1 of 3
GLGC
VRSN -
VRTS
VSH
XWG 1000 41.0000 41,100.00
XLNX
Kroll
Gekas - Morgan Stanley Dean Witter Schedule 4
Analysis of Monthly Balances
F" Mar-00 A
Sve" Sham Eft YAM sham Eft Yalu Sham Eft YAN Skam l!t YAW
lV lAf' - ..?,.., rw
Nm
ORCL 3500 74MM 259,875.00 4400 780625 343,!75.00 SW 79.9375 39.968.75 700 71.8750 50,31250
PALM 100 44.8750 4,48750
PENN
(?CpM 700 663730 46,!6250
QSFf
RIS" - 400 793750 317A.00
RMBS
Sm - 400 530000 21,200.00
SSH
SUNW 300 95.7500 28075.00
Attorney Work Product
Privileged and Confidential Page 2 of 3
CRA - S00 820000 41,000.00
C SCO 599 1321875 79,18031 1798 773124 239A0 AS
VSH -
Margin Ace 484,061.21 537,42638 125,560.94 99,92350
Capital AM. 545,570.98 373,825.87 155,857.81 137,926.50
scuc"e
s
morw
g.
akas -y Ratan
SAM
nalys?
v D 7s
700
lo'glill
0 s? Ao
70
z5
?[ 1?p 34
c?
za.+b+a?
33
sAoa4
up 35
sa37
33/.WA3
:AF?A Acct
3605" 01
1357742A
,6A73.18
35,958cA
? roa
P' er'taat
an on
P
papc3of3
Ge-kas - Morgan Stanley Dean Witter
Analysis Summary
Contributed Capital
• Beg. Capital Contribution $130,000 Jun 99
AddtI. Capital Contribution 46,517 May-00
Total Contributions $ 176,517 [A]
Ending Asset Balance $ 20 Dec-00
Add Back:
Checking 65,458
Debit Card 1,372
Adjusted Ending Balance $ 66,850 [B]
Total Decline in Contributed Capital $(1) [B - A]
Peak Account Value
Account Value at 2/29/00 $ 545,571 [C]
Ending Asset Balance $ 20 Dec-00
Add Back-
Checkdng 65,458
Debit Card 1,372
Adjusted Ending Balance $ 66,850 [D]
Total Decline in Peak Account Value $(4_78,921) [D - Cl
KwIl
Schedule 5
Attorney Work Product
Privileged and Confidential
,. .
CERTIFICATE OF SERVICE
AND NOW, this day of February, 2003, 1, Robbie Tejchman, an employee of the law
firm of Angino & Rovner, P.C., hereby certify that a true and correct copy of the foregoing
Complaint was sent to the following counsel of record by placing same in the first class, United
States mail, postage prepaid, at Harrisburg, Pennsylvania, addressed as follows:
Kurt A. Kreisher, Branch Manager
Morgan Stanley Dean Witter & Co., Inc.
One East Market Street
York, PA 17401
(on behalf of Defendants Dean Witter Reynolds Commodity Partners t/d/b/a Dean Witter and
Morgan Stanley Dean Witter & Co., Inc.)
CT Corporation System
111 Eighth Avenue, 13t` Floor
New York, NY 10011
(on behalf of Defendants Dean Witter Reynolds Commodity Partners t/d/b/a Dean Witter and
Morgan Stanley Dean Witter & Co., Inc.)
Richard Wolf
Morgan Stanley Dean Witter & Co., Inc. t
One East Market Street
York, PA 17401 f
(on behalf of Defendant Richard Wolf)?
i
f
Robbie Tejchman J
J
COMMONWEALTH OF PENNSYLVANIA
BEFORE THE
PENNSYLVANIA SECURITIES COMMISSION
IN THE M#TTER OF
ADMINISTRATIVE PROCEEDING
Mogan Stanley DW, Inc. DOCKET NO. 20011-01-18
RESPONDENT
OFFER AND UNDERTAKINGS
Respondent Morgan Stanley Dean DW, Inc. (MSDW) submits the following Offer
and Undertakings to the Pennsylvania Securities Commission (Commission), Division of
Enforcemdnt, Litigation and Compliance (Division) with respect to-. the alleged non-
pompliano by MSDW w444he -provisions of Section 305(a)(vii) of the Pennsylvania
Securities Act of 1972 (the1972 Act) in connection with a broker-dealer's obligation to
supervise is agents.
in this Offer and Undertakings shall be construed as or constitute an
admission bf liability or wrongdoing on the part of MSDW.
Staff of the Division has alleged the following:
1. At a I times material herein, MSDW was a New York corporation with a principal
plac of business located at 1585 Broadway, New York, New York 10020. MSDW
business as a "broker-dealer" within the meaning of Section 102(e) of the
s
197 Act, 70 P.S. §1-102(e). Pursuant to 301 of the 1972 Act, MSDW has been
regi tered to do business in Pennsylvania since September 17, 1968.
2. Fro approximately June 1, 1999 until about November 2000, P.G. and V.G.
maintained an account at the MSDW York, Pennsylvania office. Division Staff
conducted an examination of P.G. and V.G.'s account after receiving a complaint
fro P. G. Division Staff found that the MSDW agent for the P.G. and V.G. account
ge rated a substantial amount of his commission from P.G. and V.G.'s account,
trad d the account excessively, recommended unsuitable investments, and opened
a margin account for P.G. and V.G. knowing that neither P.G. nor V.G. had an
ad"uate understanding of the possible risks associated with trading in a margin
account.
MS W's New York Compliance Department sent two exception reports to the York,
Pennsylvania office regarding the increased account activity in the P.G. and V.G.
ac unt. The branch manager was aware of the reports, however, P.G. and V.G.'s
age t prepared the response to the two exception reports instead of the branch
ma ager, which is not an acceptable practice and could raise a conflict of interest.
By reason of the foregoing, the Commission finds that Respondent MSDW has
engaged in practices described in Section 305(a)(vii) of the 1972 Act, 70 P.S., §1-
3U5
II.
hereby OFFER AND UNDERTAKES the actions set forth below:
1. Pu uant to Section 602.1(b) of the 1972 Act, 70 P.S. §1-602.1(b), Respondent
MS W agrees to pay to the Commonwealth of Pennsylvania costs incurred in this
ma r, which sum represents a portion of the legal and investigative costs incurred
by t e Division, in the amount of $18,046.00, by check made payable to the
of Pennsylvania." Such payment in full, as well as the executed
2
Off ! r and Undertakings, shall be forwarded to the Division at the Commission's
;delphia office.
2. Respondent MSDW offers and agrees to pay the sum of $149,900.00 to P.G. and
V. within thirty (30) days from the execution of this Offer and Undertakings by
MS W and to provide the Division with an affidavit reflecting such payment. This
off represents the amount of the initial investment of P.G. and V.G. with
Respondent MSDW, less the amount remaining and withdrawn from the account
upoh closing, plus interest at the Pennsylvania legal rate of 6%.
3. Respondent MSDW agrees to comply with the Pennsylvania Securities Act of 1972
in the future and in particular Section 305(a), 70 P.S. § 1-305(a).
4. Sh uld Respondent MSDW fail to comply with any provisions of this Offer and
Un ertakings, the Commission may impose additional sanctions and costs and seek
oth r appropriate relief subject to the Respondent's right to a hearing pursuant to
the {1972 Act.
Date: V
Morgan-Stanley t)W; tnc.
Title: Managing Director, Associate General. Counse
and Assistant Secretary
ACKNOWLEDGMENT
Before me -the undersigned authority, personally appeared ehu,laL r? ,well
known 'or proved to me to be the person who executed the foregoing Offer and
Undertake gs, and acknowledged that he executed the same freely and voluntarily for the
purposes ?ated therein.
?GLscr?
i
SUSAN M. KRAUSE
} Notary Public. State of New York
No. Ot KfR4W9496
3 Oud ied in New York County
Commission Expires June 30, Z0?
CERTIFICATE OF SERVICE
I hereby certify that, on this 10th day of August, 2007, I served a true and correct copy of
the foregoing Defendant's Petition to Compel Arbitration by overnight mail upon the following
counsel:
Peter B. Foster, Esquire
PINSKEY & FOSTER
114 South Street
Harrisburg, PA 17101
?\?'O-Wdc
Coun el or Defendant
J A%j
PETER N. GEKAS AND
VERONICA P. GEKAS, husband and
wife,
PLAINTIFFS
V.
MORGAN STANLEY, DW, INC.,
DEFENDANT
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
07-3738 CIVIL TERM
ORDER OF COURT
AND NOW, this 2'7 day of August, 2007, a Rule is entered against
plaintiffs to show cause why the within petition to compel arbitration should not be
granted. Rule returnable twenty (20) days from the date of service. Any answer filed
shall be forwarded by the Prothonotary to chambers.
jw/eter B. Foster, Esquire
For Plaintiffs
seph P. Pohl, III, Esquire
For Defendant
:sal
J
Edgar B. Bayley, J.
f j l ' 't,no
99 :01 WV LZ OR LDOZ
AMONOr iGw ?H.i 3a
30H iC-X 3111
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER GEKAS and VERONICA
GEKAS, husband and wife,
Plaintiffs
V.
MORGAN STANLEY, DW, INC.,
Defendant
NO. 07-3738
CIVIL ACTION - LAW
JURY TRIAL REQUESTED
PLAINTIFF'S ANSWER TO DEFENDANT'S PETITION
TO COMPEL ARBITRATION WITH NEW MATTER
AND NOW, this 12" day of September, 2007, come Plaintiffs Peter and Veronica. Gekas,
by their attorney, Peter B. Foster, Esquire, and answer Defendant's Petition to Compel
Arbitration, as follows:
1. Admitted in part and denied in part. Admitted that in 1999 Plaintiffs signed a
one-page document with Defendant entitled "Active Assets Account Application," a copy of
which is attached as Plaintiffs' Exhibit "A." Plaintiffs deny that said document is a two-page
document. On the contrary, said document is a one-page document attached as Plaintiffs'
Exhibit "A."
2. Admitted.
3. Denied. It is denied that Plaintiffs received or were shown a Client Account
Agreement when they signed the "Active Assets Account Application" in 1999. On the contrary,
Plaintiffs never received or were shown a Client Account Agreement when they signed the
"Active Assets Account Application" in 1999. Although said "Application" (Plaintiffs' Exhibit
"A") contains the statement: "I understand that this Account is governed by the pre-dispute
arbitration clause appearing on page 7 of the agreement," the Client Account Agreement
containing the arbitration clause in question was not given to Plaintiffs at the time they signed
said Application. Furthermore, the arbitration clause actually appears on page 9 of the Client
Account Agreement, not page 7 as indicated on said Application.
4. Denied. It is denied that Plaintiffs are bound by contract to arbitrate any dispute
they might have with Morgan Stanley. On the contrary, the "Active Assets Account
Application," which the Plaintiffs signed, is a contract of adhesion and it is unconscionable for
Defendant to enforce it when the Plaintiffs are uneducated Greek immigrants who did not
understand what they were signing and Defendant's agent, who induced the Plaintiffs to sign
said "Application," was an experienced stock broker. Furthermore, Plaintiffs did not receive the
Client Account Agreement until seven years after they signed the "Application" and the
arbitration clause appears on page 9 of the Agreement rather than on page 7 as indicated in the
Application. Consequently, said arbitration clause is not binding on Plaintiffs.
5. Admitted in part and denied in part. It is denied that the Complaint that Plaintiffs
filed is not their first attempt to avoid the arbitration provision in the contract that they signed.
On the contrary, the arbitration provision was not contained in the contract which the Plaintiffs
signed in this case. Admitted that Plaintiffs have previously filed complaints against Morgan
Stanley relating to their investment account and their relationship with Morgan Stanley, before
the Pennsylvania Securities Commission and the Court of Common Pleas for York County.
6. Admitted.
7. Admitted.
8. Admitted.
9. Admitted.
10. Admitted.
11. Admitted.
12. Admitted in part and denied in part. Admitted that Plaintiffs filed the instant
Complaint in this Court to allege that Morgan Stanley did not report the PSC settlement payment
described in Paragraph 10 to the Internal Revenue Service properly by doubling the amount
actually paid out in settlement. Denied that Plaintiffs have improperly brought a state court
action despite their prior agreement to arbitrate all claims between them and Morgan Stanley.
On the contrary, said arbitration clause is not applicable, and Plaintiffs have acted properly for
the reasons stated in the preceding Paragraphs (Para. 1-11) of this Answer, which averments are
incorporated by reference, as if fully set forth at length herein
13. Denied. It is denied that this Court should enforce the Parties' agreement to
arbitrate and require Plaintiffs to submit the present dispute set forth in their Complaint to
arbitration, consistent with the terms of their agreement. On the contrary, said arbitration clause
is not applicable, and Plaintiffs have acted properly in filing the instant Complaint for the reasons
stated in the preceding Paragraphs (Para. 1-12) of this Answer, which averments are incorporated
by reference, as if fully set forth at length herein.
WHEREFORE, for all the foregoing reasons, Plaintiffs request this Honorable Court to
deny Defendant's Petition to Compel Arbitration.
NEW MATTER
AND NOW, this 12* day of September, 2007, come Plaintiffs Peter and Veronica. Gekas,
by their attorney, Peter B. Foster, Esquire, and submit New Matter to Defendant's Petition to
Compel Arbitration, as follows:
14. Plaintiffs incorporate by reference the preceding 13 Paragraphs of their Answer as
if said averments were fully set forth at length herein.
15. The "Active Assets Account Application," which the Plaintiffs signed, is a
contract of adhesion and it is unconscionable for Defendant to attempt to enforce it when the
Plaintiffs are uneducated Greek immigrants who did not understand what they were signing and
Defendant's agent, who induced the Plaintiffs to sign said "Application" was an experienced
stock broker.
16. Plaintiffs were not given, and thus did not have a chance to read, said Client
Account Agreement, containing said arbitration clause when they were told to sign the "Active
Assets Account Application" in 1999.
17. Although the statement: "I understand that this Account is governed by the pre-
dispute arbitration clause appearing on page 7 of the agreement" appears on the "Active Assets
Account Application," Plaintiffs were never given the referenced agreement to read or look over
at the time of signing said "Application."
18. Although the "Active Assets Account Application" stated that the arbitration
clause appears on page 7 of the agreement, the arbitration clause actually appears on page 9 of
the Client Account Agreement.
19. Plaintiffs were not given a copy of the Client Account Agreement containing the
disputed arbitration clause until seven years after they started with their account with Defendant.
20. Plaintiffs lacked a meaningful choice in accepting the disputed arbitration clause
because the arbitration clause was not provided to them at the time they signed said "Active
Assets Account Application."
21. Without providing the arbitration clause or the Client Account Agreement to
Plaintiffs at the time they signed their Active Assets Account Application, there was no
acceptance of the arbitration clause by Plaintiffs because there was no meeting of the minds
between the Parties.
22. The disputed arbitration clause unreasonably favors Defendant because it was
referenced in passing in boilerplate language and presented by an experienced agent of the
Defendant to Plaintiffs who had no knowledge or understanding of how an arbitration clause
affected their rights.
23. Defendant acted in bad faith by not correcting the false information submitted to
the Internal Revenue Service on a 1099 form in 2004 that erroneously claimed income to the
Plaintiffs in the amount of $299,800.00, which bad faith takes this matter out of the scope of the
disputed arbitration clause.
24. Said disputed arbitration clause is not binding on Plaintiffs because it was not
explained to them or provided for them to read at the time of their signatures and acceptance of
the Active Assets Account Application.
WHEREFORE, for all the foregoing reasons, Plaintiffs respectfully request this
Honorable Court to dismiss Defendant's Petition to Compel Arbitration.
September 12, 2007
Respectfully submitted,
Peter B. Foster, Esquire
Attorney for Plaintiffs
PINSKEY & FOSTER
114 South Street
Harrisburg, PA 17101
717-234-9321
I.D. # 15357
- `Active, Assets AcIount Application
C?,2- 'IS 04?? 00
,w Account Number
Please
complete and
return to
your Account
Executive
: A ount Holder Name w Joint Holder Name
BRANCH USE ONLY -W
1. Account Registration (check one) 2. W 9 Form
? Individual ? Custodian (UGMA/UTMA)
? Trust (complete Section 7)
Joint Account Registration
? • Right of survivorship
nants by the entirety
? ommunity property
? Tenants in common Equal ownership is assumed
unless other percentages are shown here:
Account Joint . Joinl
holder % tenant % tenant %
Other Registrations
? Corporation' ? Partnership' ? Guardian'
? Other` (identity)
Dean Witter is required by law to withhold 31 % of dividends,
interest and gross proceeds of sales of securities for any
account which has not filed a W-9 Form. Please enter your
Social Security or Tax ID number.
Account
Holder Number f ? 7, r7,-, Y, Z; . Y_7, YM
?
Joint
Holder Numbers y O 3? C-?
Check if either of the following applies:
? The IRS has notified me that I am subject to
backup withholding.
? I have nonresident alien or foreign entity status.
(Form W-8 must be submitted.)
'Additional papers must be filed
3. Active Assets Account Services
Please check below any Active Assets Account services you
would like.
Detailed information about the account, its services and
annual fee may be found in the Dean Witter Client Agreement
and the Active Assets Trust prospectus. Please read them
carefully.
Year-End Summary of account activity
(all owners receive)
Daily sweep of all available cash into (check one):
Money Trust ? Gov't Trust ? Tax-free Trust
? Cal. Tax-free Trust ? FDIC Insured Account
_XCheckwriting privileges
Please complete
XVISA debit card checkwritingtvtSA
card application
Personal Identification Number -bn the
for. VISA card ATM cash withdrawals reverse side
? Preprinted deposit slips
? Direct deposit of social security or payroll
(additional form required)
? Monthly mailing of Interest and dividend checks for:
? All income ? All Income excluding return of
capital/principal
Business Active Asset Accounts only:
? Fiscal Year-End Summary
Month Day
4. Signatures All clients must sign below. By signing:
A. 1 confirm that I am at least 18 years of age and of full legal age in my state of residence.
B. As required by IRS regulations, I certify under penalties of perjury that I have provided you with my correct
Social Security 'or Tax ID number.
C. 1 acknowledge I have received the Dean Witter Client Agreement and agree to abide by its terms as currently in
effect or as they may be amended from time to time.
D. I confirm that I ha a received the Active Assets Trust prospectus.
E. (check one Yes, l am requesting margin privileges.
(] No, l do not wish margin privileges.
in my account that
account at G rates
explained and terms
ERN D BY THE
?, .
/,//X
Im 4 zo*? i -Itl
Ac nl Ide 041ure Dale Joint iure Date
tl?1t nr im t4rmmy in'Vivni n" IMr Exhibit "A"
The following applies only to clients who request and are approved for margin privileges:
! authorize Dean Witter to lend to itself or to others, . either separately or in common, any holding
Dean Witter may be carrying for me on margin I understand UNDERSTAND that I THAT may THIS borrow against ACCOUNT my IS in the Dean Witter Client Ayresmel?l GOV
PRE-DISPUTE ARBITRATI CLAUSE APPEARING ON PAGE 7 OF THE AGREEMENT.
J
VERIFICATION
I, Peter Gekas, hereby verify that the statements made in the foregoing Answer to
Defendant's Petition are true and correct to the best of my knowledge, information and belief. I
understand that false statements herein are made subject to the penalties of 18 Pa.C.S.A. § 4904,
relating to unworn falsification to authorities.
September 12, 2007
CERTIFICATE OF SERVICE
I hereby certify that on this date, September 12, 2007, I served a copy of the foregoing
Answer with New Matter on the Defendant by mailing said copy by first class mail at
Harrisburg, PA to the attorney for Defendant at the following address:
Joseph P. Pohl, III, Esquire
Reed Smith
435 Sixth Avenue
Pittsburgh, PA 15219-1886
September 12, 2007
Peter B. Foster, Esquire
Attorney for Plaintiffs
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IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER N. GEKAS and VERONICA P. CIVIL ACTION NO. 07-3738
GEKAS, husband and wife,
Plaintiffs,
V.
MORGAN STANLEY, DW, INC.,
Defendant.
DEFENDANT'S REPLY TO NEW MATTER
COMES NOW Defendant Morgan Stanley, DW, Inc.1 ("Morgan Stanley"), through its
undersigned counsel, and submits this Reply to the New Matter pled by Plaintiffs Peter and
Victoria Gekas with their Answer to Morgan Stanley's Petition to Compel Arbitration, stating as
follows:
L-13. Paragraphs 1 through 13 of Plaintiffs' Answer with New Matter serve as Answers
to Paragraphs 1 through 13 of Morgan Stanley's Petition to Compel Arbitration. No response to
these Paragraphs is required.
14. Paragraph 14 of Plaintiffs' Answer with New Matter incorporates by reference
Plaintiffs' Answers to each of the thirteen Paragraphs in Morgan Stanley's Petition to Compel
Arbitration. No response to this Paragraph is required.
1 Effective April 1, 2007, Morgan Stanley DW Inc. merged into Morgan Stanley & Co.
Incorporated, and is no longer a legal entity. The correct new broker-dealer name is
Morgan Stanley & Co. Incorporated.
15. Paragraph 15 of Plaintiffs' New Matter contains legal conclusions to which no
response is required. To the extent that a response is required, Morgan Stanley denies that its
contract with Plaintiffs is a contract of adhesion, that the contract contains unconscionable terms,
and that Morgan Stanley's agent induced Plaintiffs to sign the contract. To the contrary, the
contract between Morgan Stanley and Plaintiffs is not a contract of adhesion, does not contain
unconscionable terms, and no agent of Morgan Stanley induced Plaintiffs to sign the contract.
To the extent that a further response is required, Morgan Stanley lacks knowledge or information
sufficient to form a belief as to the truth of the remaining allegations contained in Paragraph 15
of Plaintiffs' New Matter and, on that basis, denies each such allegation.
16. Paragraph 16 of Plaintiffs' New Matter is denied as stated. Morgan Stanley's
policies and procedures mandate that clients receive the Client Account Agreement, referred to
in the Active Assets Account Application, in connection with opening a new account. To the
extent that a further response is required, Morgan Stanley lacks knowledge or information
sufficient to form a belief as to the truth of the remaining allegations contained in Paragraph 16
of Plaintiffs' New Matter and, on that basis, denies each such allegation.
17. With respect to Paragraph 17 of Plaintiffs' New Matter, Morgan Stanley admits
that the phrase "I UNDERSTAND THAT THIS ACCOUNT IS GOVERNED BY THE PRE-
DISPUTE ARBITRATION CLAUSE APPEARING ON PAGE 7 OF THE [CLIENT
ACCOUNT AGREEMENT]" appears on the Active Assets Account Application that Plaintiffs
signed, directly above their signatures. By way of further answer, Morgan Stanley lacks
knowledge or information sufficient to form a belief as to the truth of the remaining allegations
contained in Paragraph 17 of Plaintiffs' New Matter and, on that basis, denies each such
allegation.
-2-
18. Paragraph 18 of Plaintiffs' New Matter is admitted. By way of further answer,
the arbitration provision in the applicable Client Account Agreement appears on page 9, rather
than page 7 as indicated in the applicable Active Assets Account Application, due to the fact that
at the time Plaintiffs opened their account, the Client Account Agreement had recently been
revised, while the Active Assets Account Application had not. The terms of the arbitration
provision did not change.
19. Paragraph 19 of Plaintiffs' New Matter is denied as stated. Morgan Stanley's
policies and procedures mandate that clients receive the Client Account Agreement, referred to
in the Active Assets Account Application, in connection with opening a new account. To the
extent that a further response is required, Morgan Stanley lacks knowledge or information
sufficient to form a belief as to the truth of the remaining allegations contained in Paragraph 19
of Plaintiffs' New Matter and, on that basis, denies each such allegation.
20. Paragraph 20 of Plaintiffs' New Matter is denied as stated. Morgan Stanley
denies that Plaintiffs lacked a meaningful choice with regard to the arbitration clause, or that
Plaintiffs were not aware of the arbitration clause when they opened their account with Morgan
Stanley. To the contrary, language referring to arbitration as the dispute resolution mechanism
appeared prominently above the signature line on the Active Assets Account Application that
Plaintiffs signed. Plaintiffs were thus aware that any dealings with Morgan Stanley would be
subject to arbitration and, by signing the Active Assets Account Application, Plaintiffs
voluntarily chose to accept that circumstance and engage in such dealings. Morgan Stanley's
policies and procedures mandate that clients receive the Client Account Agreement, referred to
in the Active Assets Account Application, in connection with opening a new account. To the
extent that a further response is required, Morgan Stanley lacks knowledge or information
-3-
sufficient to form a belief as to the truth of the remaining allegations contained in Paragraph 20
of Plaintiffs' New Matter and, on that basis, denies each such allegation.
21. Paragraph 21 of Plaintiffs' New Matter contains legal conclusions to which no
response is required. To the extent that a response is required, Morgan Stanley denies that there
was no meeting of the minds between Plaintiffs and Morgan Stanley. To the contrary, the parties
had a valid agreement to arbitrate any disputes arising between them. Morgan Stanley's policies
and procedures mandate that clients receive the Client Account Agreement, referred to in the
Active Assets Account Application, in connection with opening a new account. To the extent
that a further response is required, Morgan Stanley lacks knowledge or information sufficient to
form a belief as to the truth of the remaining allegations contained in Paragraph 21 of Plaintiffs'
New Matter and, on that basis, denies each such allegation.
22. Paragraph 22 of Plaintiffs' New Matter contains legal conclusions to which no
response is required. To the extent that a response is required, Morgan Stanley denies that the
terms of the arbitration clause unreasonably favor Morgan Stanley or that the arbitration
provision was referred to "in passing." To the contrary, the Active Assets Account Application
provided notice of arbitration as the dispute resolution mechanism in conspicuous capital
lettering, set apart from other text in the document. Further, the arbitration language appeared
directly and prominently above the signature lines where Plaintiffs affixed their signatures. To
the extent that a further response is required, Morgan Stanley lacks knowledge or information
sufficient to form a belief as to the truth of the remaining allegations contained in Paragraph 22
of Plaintiffs' New Matter and, on that basis, denies each such allegation.
23. Paragraph 23 of Plaintiffs' New Matter contains legal conclusions to which no
response is required. To the extent that a response is required, Morgan Stanley denies that it
-4-
acted with bad faith toward Plaintiffs. By way of further answer, to the extent that any error was
made in reporting Plaintiffs' income to the Internal Revenue Service, such an error was
unintended. Further, Morgan Stanley denies that Plaintiffs' allegation of bad faith "takes this
matter out of the scope of the disputed arbitration clause," as the terms of the Client Account
Agreement, which was incorporated by reference into the parties' agreement, make no such
exception.
24. Paragraph 24 of Plaintiffs' New Matter contains legal conclusions to which no
response is required. To the extent that a response is required, Morgan Stanley denies that the
arbitration provision contained in Plaintiffs' contract with Morgan Stanley is not binding on
Plaintiffs. To the contrary, the arbitration provision contained in Plaintiffs' contract with
Morgan Stanley is binding on Plaintiffs. By way of further answer, Morgan Stanley's policies
and procedures mandate that clients receive the Client Account Agreement referred to in the
Active Assets Account Application in connection with opening a new account. To the extent
that a further response is required, Morgan Stanley lacks knowledge or information sufficient to
form a belief as to the truth of the remaining allegations contained in Paragraph 24 of Plaintiffs'
New Matter and, on that basis, denies each such allegation.
WHEREFORE, Defendant Morgan Stanley prays that this Court might:
a) Stay this litigation pending resolution of the arbitration issue;
b) Resolve the arbitration issue by requiring Plaintiffs to submit their dispute with
Morgan Stanley to arbitration as provided in the parties' contract; and
c) Grant such other and further relief as the Court deems just and proper.
-5-
Respectfully submitted:
J ep P. Pohl III
P Il No. 82237
Jason A. Spak
PA ID No. 89077
Reed Smith LLP
435 Sixth Avenue
Pittsburgh, PA 15219
(412) 288-3131
Counsel for Defendant
Dated: October 4, 2007
-6-
VERIFICATION
I, Susan Poder MacFarlane, acting on behalf of Defendant Morgan Stanley as its Vice
President, have read Defendant's Petition to Compel Arbitration and Defendant's Reply to the
New Matter offered by Plaintiffs in their Answer to Defendant's Petition to Compel Arbitration.
The statements in Defendant's initial Petition to Compel Arbitration and in Defendant's Reply to
New Matter are true and correct to the best of my knowledge, information, and belief. I
understand that the foregoing statements are made subject to the penalties of 18 Pa. C.S.A.
§4904 relating to unsworn falsification to authorities, which provides for criminal penalties if a
person with intent to mislead makes a false written statement that he or she does not believe to be
true.
Dated: October 3, 2007
CERTIFICATE OF SERVICE
I hereby certify that, on this 4th day of October, 2007, I served a true and correct copy of
the foregoing Reply to New Matter by overnight mail upon the following counsel:
Peter B. Foster, Esquire
PINsKEY & FOSTER
114 South Street
Harrisburg, PA 17101
C nse or Defendant
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PRAECI PE FOR I IFM-G CASE FOR ARGUMENT
(Mast be typewritten and submitted in dupHeate)
TO THE PROTHONOTARY OF CUMBERLAND COUNTY:
Please list the within matte for the next Argument Court.
CAPTION OF CASE
(entire caption must be stated in full)
Peter and Veronica Gekas
VS.
Morgan Stanley, D.W., Inc.
No. 3738 , 2007 Term
1. State matter to be argued (i.e., plaintiffs motion for new trial, defendant's demurrer to
c•,omQlaiat, etc.):
Defendant's Motion to Compel Arbitration
2. Identify counsel who will argue cases:
(a) for plaintiff:
Peter B. Foster, Esq., 114 South Street, Harrisburg, PA 17101
(Name and Address)
(b) for defendant:
Joseph P. Pohl, III, 435 Sixth Avenue, Pittsburgh, PA 15219
(Name and Address)
3. I will notify all parties in writing within two days that this case has been listed for argument
4. Argument Court Date:
November 21, 2007
Date: October 19, 2007
I
(Plaintiff)
(Defendant)
sigaatum
Peter B. Foster, Esquire
Print your
Attorney for P la int if f s
PINSKEY & FOSTER
114 South Street
Harrisburg, PA 17101
717-234-9321
I.D. # 15357
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IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER N. GEKAS and VERONICA P.
GEKAS, husband and wife,
CIVIL ACTION NO. 07-3738
Plaintiffs,
V.
MORGAN STANLEY, DW, INC.,-
Defendant.
ORIG/NAIL
DEFENDANT'S MOTION TO STRIKE PLAINTIFFS' PRAECIPE LISTING
DEFENDANT'S PETITION TO COMPEL ARBITRATION FOR ARGUMENT OR IN
THE ALTERNATIVE, UNOPPOSED MOTION TO CONTINUE ARGUMENT
COMES NOW Defendant Morgan Stanley, DW, Inc.I ("Morgan Stanley"), through its
undersigned counsel, and submits this Motion to Strike Plaintiffs' Praecipe Listing Defendant's
Petition to Compel Arbitration for Argument, or in the alternative, Unopposed Motion to
Continue Argument, stating as follows:
1. On October 19, 2007, Plaintiffs' counsel filed a Praecipe to List Defendant's
Petition to Compel Arbitration for Argument on the Court's November 21, 2007 Argument List.
2. As set forth in Defendant's letter to the Court Administrator, dated October 31,
2007 (attached hereto as Exhibit 1), Defendant objects to Plaintiffs' Praecipe to List Morgan
Stanley's Petition to Compel Arbitration for Argument, as it appears to be contrary to Local
Rules 206.1, 206.4(c) and 208.3(a) of the Court of Common Pleas for Cumberland County,
which specify that the Court shall set the schedule for any briefing or argument on such a
petition.
Effective April 1, 2007, Morgan Stanley DW Inc. merged into Morgan Stanley & Co.
Incorporated, and is no longer a legal entity. The correct new broker-dealer name is
Morgan Stanley & Co. Incorporated.
3. To date, the Court has not any schedule for briefing or argument on Defendant's
Petition.
4. As set forth in Exhibit 1 and Defendant's Petition to Compel Arbitration, since
2002, Plaintiffs have pursued a related action against Morgan Stanley before the Court of
Common Pleas for York County. The arbitration issue has been raised and fully briefed before
the Court in York County as of July, 2007, and the parties are currently awaiting a decision from
that Court.
5. If, however, this Court determines that Plaintiffs' Praecipe is effective to list
Defendant's Petition for Argument on the Court's November 21, 2007 Argument List, Defendant
respectfully requests that the Court continue the argument to the next available argument date
(which appears to be January 23, 2008), as Defendant's counsel have scheduling conflicts with
the November 21, 2007 argument date.
6. Defendant's counsel has conferred with Plaintiffs' counsel regarding the proposed
continuance of the argument date, and Plaintiffs' counsel has no objection to this continuance.
WHEREFORE, Defendant respectfully requests that Plaintiffs' Praecipe be stricken.
Alternatively, if the Court determines that Plaintiffs' Praecipe is deemed effective to list the
Petition for argument, Defendant respectfully requests that the Court continue the argument (and
related briefing) until the next available argument date.
-2-
Respectfully submitted:
.PPS
Jo h . Pohl III
P ID o.82237
Jaso . Spak
PA ID No. 89077
Reed Smith LLP
435 Sixth Avenue
Pittsburgh, PA 15219
(412) 288-3131
Counsel for Defendant
Dated: October 31, 2007
-3-
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ReedSmith
Reed Smith LLP
435 Sixth Avenue
Joseph P. Pohl III Pittsburgh, PA 15219-1886
Direct Phone: 412.288.3828 412.288.3131
Email: jpohl@reedsmith.com Fax 412.288.3063
October 31, 2007
VIA FAX TO 717.240.6460
Ms. Taryn Dixon, Esq.
District Court Administrator
Court of Common Pleas for Cumberland County
1 Courthouse Square, 3R
Carlisle, PA 17013
Re: Peter and Veronica Gekas. v. Morgan Stanley, D.W., Inc.
Court of Common Pleas of Cumberland County; No. 2007-3738
Plaintiffs' Praeciae to List Matter for Oral Argument
Dear Ms. Dixon:
I represent the Defendant, Morgan Stanley, in the above-referenced matter. I spoke with a
representative of your office today by telephone, and she confirmed my understanding of the
Cumberland County Local Rules (as described below) and advised me to send this letter to address
striking Plaintiffs' Praecipe to List Defendant's Petition to Compel Arbitration from the Court's
November 21,-2007 Argument List.
Plaintiffs instituted the above-referenced action by Complaint this past summer. In response,
Morgan Stanley filed a Petition to Compel Arbitration. The present dispute is related to another,
previously filed action involving the parties that has been pending since 2002 before the Court of
Common Pleas for York County. The arbitration issue has been raised in York County and, since July
2007, has been fully briefed. Thus, the parties are presently awaiting a decision from the York County
Court on the arbitration issue.
On August 27, 2007, the Cumberland County Court issued a rule to show cause in response to
Morgan's Stanley's Petition to Compel Arbitration, directing Plaintiffs' to respond to the Petition, which
they did. The Court did not set a schedule for briefing or argument on the Petition. Plaintiffs
unilaterally filed the Praecipe to list the Petition for oral argument on October 19, 2007, indicating an
argument date of November 21, 2007.
NEW YORK ? LONDON ? CHICAGO ? PARIS ? LOS ANGELES ? SAN FRANCISCO ? WASHINGTON, D.C. ? PHILADELPHIA ? PITTSBURGH ? OAKLAND
MUNICH ? ABU DHABI ? PRINCETON ? NORTHERN VIRGINIA ? WILMINGTON ? BIRMINGHAM ? DUBAI ? CENTURY CITY ? RICHMOND ? GREECE
reedsmith.com
PGHLIB-2164887.1-JPPOHL 10/31107 1:28 PM
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• Ms. Taryn Dixon, Esq.
• October 31, 2007
Page 2
RmdSmith
It is my understanding, from consulting the Cumberland County Local Rules (specifically, Local
Rules 206.1, 206.4(c) and 208.3(a)), that only preliminary objections, motions for judgment on the
pleadings and motions for summary judgment may be listed by the parties, and that briefing and/or oral
argument on all other motions or petitions, including Morgan Stanley's Petition to Compel Arbitration,
shall be set exclusively by the Court. My understanding was confirmed earlier today during a telephone
conference with a representative of your office. Plaintiffs' counsel indicates that he has contacted your
office, however, and has been told that he may proceed with briefing and argument as a result of his
Praecipe.
It is Morgan Stanley's preference that the briefing and argument on the Petition to Compel
Arbitration be stayed pending a decision from York County, where the issue has been raised, briefed and
is awaiting decision. Accordingly, please confirm that Plaintiffs' Praecipe will be stricken, and that oral
argument will not proceed on November 21, 2007.
Alternatively, if Plaintiffs' Praecipe is deemed effective, we respectfully request that the Court
grant a continuance of the proposed November 21, 2007 oral argument date, as defense counsel has
scheduling conflicts with that date.
Thank you for your attention to this matter.
Sincerely,
REED SMITH LLP
By:
Jo eph P. Pohl III
JPP III/kaw
cc: Peter B. Foster, Esq.
CERTIFICATE OF SERVICE
I hereby certify that, on this 31 st day of October, 2007,1 served a true and correct copy of
the foregoing Motion to Strike Plaintiffs' Praecipe Listing Defendant's Petition to Compel
Arbitration for Argument or in the Alternative, Unopposed Motion to Continue Argument by
overnight mail upon the following counsel:
Peter B. Foster, Esquire
PINS KEY & FOSTER
114 South Street
Harrisburg, PA 17101
At4 - p6ulr
C ns I for Defendant
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PRAFAM FOR LWIV G CASE FOR ARGUMENT
(Mast be typewritten and submitted in doplieate)
TO THE PROTHONOTARY OF CUMBERLAND COUNTY:
Please list the wittrin matter for the next Argument Court.
CAPTION OF CASE
(entire caption must be stated in full)
Peter and Veronica Gekas
VS.
Morgan Stanley, D.W., Inc.
(Defendant)
No. 3738 , 2007 Term
1. Starve mattes to be argued (ie., plainffs motion foot new trial, dekodant's demurrer to
campLint, etc.):
Defendant's Motion to Compel Arbitration
2. Identify counsel who will argue uses:
(a) for plaintiff:
Peter B. Foster, Esquire, 114 South St., Harrisburg, PA 17101
(Nance and Address)
(b) for defendant:
Joseph P. Pohl, III, Esq., 435 Sixth Ave., Pittsburgh, PA 15219
(Name and Address)
3. I will notify all parties in writing within two days that this case has been listed for argument.
4. Argument Court Date:
January 23, 2007
signature
Peter B. Foster, Esquire
Print your name ?Q
Date: November 5, 2007 Atoomeyfa ainti S
+ Pinskey & Foster
114 South Street
Harrisburg, PA 17101
717-234-9321
I.D. # 15357
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CIVIL ACTION NO. 07-3738
ORDER OF COURT
Upon consideration of Defendant's Motion to Strike Plaintiffs' Praecipe to List
Defendant's Petition to Compel Arbitration for Argument, it is hereby ORDERED,
ADJUDGED and DECREED that Plaintiffs' Praecipe be STRICKEN, and the matter
shall not proceed for argument on November 21, 2007.C???
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IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER N. GEKAS and VERONICA P.
GEKAS, husband and wife,
Plaintiffs,
V.
MORGAN STANLEY, DW, INC.,
Defendant.
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
PETER GEKAS and VERONICA GEKAS, NO. 2007-03738
Plaintiffs,
V.
STANLEY MORGAN DW, INC.
Defendant
PRAECME FOR ENTRY OF APPEARANCE
TO THE PROTHONOTARY:
Please enter my appearance on behalf of the Defendant in the above action.
'Donald B. oyt, Esquire
Co-Counsel for Defendant
17 East Market Street
York, PA 17401
S. Ct. I.D. #18061
Telephone (717) 845-3674
Dated: 5?11A11W
IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION - LAW
PETER GEKAS and VERONICA GEKAS, NO. 2007-03738
Plaintiffs,
V.
STANLEY MORGAN DW, INC.
Defendant
CERTIFICATE OF SERVICE
I hereby certify that I am this day causing a copy of the foregoing document to be served
by First Class United States Mail, postage prepaid, on the following person:
Peter B. Foster, Esquire
PINSKEY & FOSTER
121 South Street
Harrisburg, PA 17101-1213
Joseph P. Pohl, III, Esquire
REED SMITH, LLP
435 Sixth Avenue
Pittsburgh, PA 15219
BLAKEY, YOST, BUPP & RAUSCH, LLP
Dated: Q? ?oS QD By:
Ileen S. Krone, Secretary to
Donald B. Hoyt, Esquire
Co-Counsel for Defendant
9A
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER GEKAS and VERONICA NO. 07-3738
GEKAS, husband and wife, CIVIL TERM
Plaintiffs
V.
CIVIL ACTION - LAW
MORGAN STANLEY, DW, INC.,
Defendant JURY TRIAL REQUESTED
MOTION TO AMEND COMPLAINT
AND NOW, this 2°d day of April, 2008, come Plaintiffs Peter and Veronica Gekas, by
their attorney, Peter B. Foster, Esquire, and move for permission to amend the Complaint as
follows:
1. Plaintiffs desire to amend the Complaint to eliminate Count I and add two (2)
paragraphs indicating that Defendant violated its duty of care to Plaintiffs by falsely reporting
income for Plaintiffs to the I.R.S. in 2004.
2. Plaintiffs have made said amendments to the proposed Amended Complaint
attached as Exhibit "A".
3. Defendant has consented to the amendments to the Complaint indicated in the
Amended Complaint attached as Exhibit "A".
4. Rule 1033 of the Pa. Rules of Civil Procedure permits a Plaintiff to amend a
Complaint with the consent of the adverse party.
WHEREFORE, for all the foregoing reasons, Plaintiffs Peter and Veronica Gekas
respectfully request this Honorable Court to permit them to amend their Complaint as indicated
by the proposed Amended Complaint attached as Exhibit "A".
Respectfully submitted,
April 2, 2008
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Peter B. Foster, Esquire
Attorney for Plaintiffs
PINSKEY & FOSTER
114 South Street
Harrisburg, PA 17101
717-234-9321
I.D. # 15357
A
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER GEKAS and VERONICA NO. 07-3738
GEKAS, husband and wife, CIVIL TERM
Plaintiffs
V.
CIVIL ACTION - LAW
MORGAN STANLEY, DW, INC.,
Defendant JURY TRIAL REQUESTED
AMENDED COMPLAINT
1. Plaintiffs Peter and Veronica Gekas, husband and wife, are adult individuals with
an address of 202 Condoguinet Avenue, Camp Hill, Cumberland County, Pennsylvania 17011.
2. Defendant Morgan Stanley is a brokerage/investment corporation registered to do
business in the State of New Jersey with an address of H.F.C. Plaza 11, 1St Floor, Jersey City,
New Jersey 07311.
3. In the year 2004, Plaintiffs were customers and clients of Defendant and had
investments with Defendant which were managed by Defendant.
4. In 2004, Defendant falsely reported taxable income for Plaintiffs to the Internal
Revenue Service in the amount of $299,800.00 on two (2) 1099 forms.
5. As a result of said false reports by Defendants to the I.R.S., the Internal Revenue
Service has incorrectly assigned Plaintiffs a federal tax debt of $126,371.02.
6. Defendant knew or should have known that by falsely reporting taxable income of
$299.800.00 for the Plaintiffs to the I.R.S. in 2004, Plaintiffs would be subject to severe
harassment by the I.R.S. to pay federal tax on said incorrect income, which would include levies
on the Plaintiffs' property.
7. As Plaintiffs' investor and broker, Defendant owed a duty of care to Plaintiffs to
accurately report their income to the I.R.S.
8. By inaccurately reporting Plaintiffs' income to the I.R.S. in 2004 Morgan Stanley
failed and neglected to exercise a reasonable duty of care to Plaintiffs as Plaintiffs investor and
broker.
9. By falsely reporting taxable income of $299,800.00 for Plaintiffs to the I.R.S. in
2004, Defendant committed gross negligence against Plaintiffs.
10. As a result of said false reports by Defendant to the I.R.S., the Internal Revenue
Service has continually harassed Plaintiffs to pay an incorrect tax obligation of $126,371.02 from
2004 to the present, including serving notices of levies on Plaintiffs' real and personal property.
11. As a result of said harassment by the I.R.S. due to Defendant's wrongful acts, as
aforesaid, Plaintiffs have suffered depression, intense emotional distress, and extreme anxiety;
and it has been necessary for Plaintiffs to hire an attorney to correct said I.R.S. errors to their
great detriment and loss.
12. Defendant knew or should have known that by falsely reporting taxable income of
$299,800.00 for the Plaintiffs to the I.R.S. in 2004, Plaintiffs would be subject to severe
harassment by the I.R.S. to pay federal tax on said incorrect income, including levies on the
Plaintiffs' property.
WHEREFORE, for all the foregoing reasons, Plaintiffs Peter and Veronica Gekas request
compensatory damages against Defendant Morgan Stanley in excess of the compulsory
arbitration limits.
t
April 2, 2008
Respectfully submitted,
(mow 0. _
Peter B. Foster, Esquire
Attorney for Plaintiffs
PINSKEY & FOSTER
114 South Street
Harrisburg, PA 17101
717-234-9321
I.D. # 15357
f .
VERIFICATION
I, Peter Gekas, hereby verify that the statements made in the foregoing Amended
Complaint are true and correct to the best of my knowledge, information and belief. I understand
that false statements herein made are subject to the penalties of 18 Pa.C.S.A. § 4904, Unworn
Falsification to Authorities.
April 2, 2008
h
ete e
G
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CERTIFICATE OF SERVICE
I hereby certify that on this date, April 2, 2008, I served a copy of the foregoing Motion
on the Defendant by mailing said copy by first class mail at Harrisburg, PA to the attorney for
Defendant at the following address:
Joseph P. Pohl, III, Esquire
Reed Smith
435 Sixth Avenue
Pittsburgh, PA 15219-1886
April 2, 2008
Peter B. Foster, Esquire
Attorney for Plaintiffs
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IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER GEKAS and VERONICA NO. 07-3738
GEKAS, husband and wife, CIVIL TERM
Plaintiffs
V.
CIVIL ACTION - LAW
MORGAN STANLEY, DW, INC.,
Defendant JURY TRIAL REQUESTED
ORDER
AND NOW, this qj4ay of April, 2008, upon consideration of Plaintiffs' Motion to
Amend Complaint, said Motion is granted and Plaintiffs are hereby permitted to amend their
Complaint as indicated by the Amended Complaint attached to said Motion as gXhibft
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IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER N. GEKAS and VERONICA P.
GEKAS, husband and wife,
Plaintiffs,
CIVIL ACTION NO. 07-3738
V.
MORGAN STANLEY, DW, INC.,
Defendant.
NOTICE TO PLEAD:
ANSWER TO AMENDED COMPLAINT
AND NEW MATTER
Filed on behalf of:
Morgan Stanley & Co. Incorporated
Counsel of Record for these Parties:
Joseph P. Pohl III
PA I.D. No. 82237
Jason A. Spak
PA I.D. No. 89077
TO: PLAINTIFFS
You are hereby notified to file a written
response to the enclosed New Matter
within twenty (20) days from service
hereof or a judgment may be entered
against you.
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Co tj 1 for Defendant
Reed Smith LLP
Firm No. 234
435 Sixth Avenue
Pittsburgh, PA 15219
(412) 288-3131
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER N. GEKAS and VERONICA P. CIVIL ACTION NO. 07-3738
GEKAS, husband and wife, :
Plaintiffs,
V.
MORGAN STANLEY, DW, INC.,
Defendant.
ANSWER TO AMENDED COMPLAINT AND NEW MATTER
COMES NOW Defendant Morgan Stanley & Co. Incorporated ("Morgan Stanley"),
incorrectly identified by Plaintiffs as Morgan Stanley, DW, Inc. 1, through its undersigned
counsel and files the following Answer to Amended Complaint and New Matter.
1. After reasonable investigation, Defendant is without knowledge or information
sufficient to form a belief as to the truth of the allegations set forth in paragraph 1 of the
Amended Complaint, and they are therefore denied.
2. To the extent that Paragraph 2 of the Amended Complaint implies that the stated
address is Morgan Stanley's corporate headquarters, it is denied. To the contrary, the stated
address in paragraph 2 is not Morgan Stanley's corporate headquarters. Paragraph 2 is otherwise
admitted.
3. With respect to paragraph 3 of the Amended Complaint, it is denied that in the
year 2004, Plaintiffs were customers and clients of Defendant and had investments with
Effective April 1, 2007 Morgan Stanley DW Inc. merged into Morgan Stanley & Co.
Incorporated, and is no longer a legal entity. The correct new broker-dealer name is
Morgan Stanley & Co. Incorporated.
Defendant which were managed by Defendant. To the contrary, Plaintiffs opened an account
with Morgan Stanley in 1999 and ceased active trading in the account at the end of 2000. By
way of further answer, Morgan Stanley did not manage Plaintiffs' investments; rather, Plaintiffs
directed their Morgan Stanley financial advisor to make investments on their behalf.
4. With respect to paragraph 4 of the Amended Complaint, Morgan Stanley denies
that it falsely reported taxable income for Plaintiffs to the Internal Revenue Service ("IRS") in
the amount of $299,800 on two (2) 1099 forms. By way of further answer, in 2004, Morgan
Stanley issued a check to Plaintiffs in the amount of $149,900 to settle a matter pending before
the Pennsylvania Securities Commission. In connection with that settlement payment, Morgan
Stanley's tax reporting department issued two 1099s-one to Mr. Gekas and one to Mrs.
Gekas-each in the amount of $149,900, rather than issuing one 1099 for both Mr. and Mrs.
Gekas. Since being informed of the IRS' inquiries by Plaintiffs' counsel, Morgan Stanley has
submitted a revised 1099 to the IRS for Mrs. Gekas, indicating that she did not receive any
income in 2004, and thereby establishing that the Gekases combined income from the settlement
was $149,900.
5. After reasonable investigation, Defendant is without knowledge or information
sufficient to form a belief as to the truth of the allegations set forth in paragraph 5 of the
Amended Complaint, and they are therefore denied.
6. With respect to paragraph 6 of the Amended Complaint, Morgan Stanley denies
that it knew or should have known that by falsely reporting taxable income of $299,800 for the
Plaintiffs to the IRS in 2004, Plaintiffs would be subject to severe harassment by the IRS to pay
federal tax on said incorrect income, which would include levies on the Plaintiffs' property. To
the contrary, Morgan Stanley did not know or should not have known that by falsely reporting
-2-
taxable income of $299,800 for the Plaintiffs, Plaintiffs would be subject to severe harassment by
the IRS to pay federal tax on said incorrect income, which would include levies on the Plaintiffs'
property. By way of further answer, Morgan Stanley is not privy to Plaintiffs' dealings with the
IRS.
7. Paragraph 7 of the Amended Complaint sets forth a conclusion of law, to which
no response is required. To the extent that a response is required, Morgan Stanley denies that it
owed Plaintiffs a duty of care to accurately report their income to the IRS. To the contrary,
Morgan Stanley did not owe Plaintiffs a duty of care to accurately report their income to the IRS.
Morgan Stanley further denies that it is Plaintiffs' "investor." To the contrary, Morgan Stanley
is not Plaintiffs' "investor."
8. Paragraph 8 of the Amended Complaint sets forth a conclusion of law, to which
no response is required. To the extent that a response is required, Morgan Stanley denies that by
inaccurately reporting Plaintiffs' income to the IRS in 2004, it failed and neglected to exercise a
reasonable duty of care to Plaintiffs as Plaintiffs' investor and broker. To the contrary, Morgan
Stanley did not owe Plaintiffs a reasonable duty of care as an investor or broker with respect to
reporting Plaintiffs' income to the IRS, and Morgan Stanley did not fail or neglect to exercise
due care with respect to its dealings with Plaintiffs. By way of further answer, Morgan Stanley
is not Plaintiffs' "investor."
9. Paragraph 9 of the Amended Complaint sets forth a conclusion of law, to which
no response is required. To the extent that a response is required, Morgan Stanley denies that it
committed gross negligence against Plaintiffs. To the contrary, Morgan Stanley did not commit
gross negligence against Plaintiffs.
-3-
10. After reasonable investigation, Defendant is without knowledge or information
sufficient to form a belief as to the truth of the allegations set forth in paragraph 10 of the
Amended Complaint, and they are therefore denied. By way of further answer, to the extent that
paragraph 10 refers to notices of levies on Plaintiffs real and personal property, such allegations
refer to written documents, the contents of which speak for themselves.
11. After reasonable investigation, Defendant is without knowledge or information
sufficient to form a belief as to the truth of the allegations set forth in paragraph 11 of the
Amended Complaint, and they are therefore denied. By way of further answer, Morgan Stanley
specifically denies that Plaintiffs have suffered any actionable damages with regard to the IRS
reporting of their settlement payment. To the contrary, upon information and belief, Plaintiffs
have not suffered any actionable damages with regard to the IRS reporting of their settlement
payment.
12. Paragraph 12 of the Amended Complaint is identical to paragraph 6, and
Defendant responds by incorporating its answer in paragraph 6 above as if fully set forth herein.
WHEREFORE, Defendant Morgan Stanley respectfully requests that this Honorable
Court- dismiss Plaintiffs' Amended Complaint with prejudice.
NEW MATTER
13. The Amended Complaint should be dismissed with prejudice because Plaintiffs
fail to state a claim upon which relief may be granted.
14. The Amended Complaint should be dismissed with prejudice because Plaintiffs
fail to plead the existence of a legitimate legal duty to support their claim of gross negligence.
15. The Amended Complaint should be dismissed with prejudice because Plaintiffs
fail to plead actionable damages.
-4-
16. Plaintiffs' allegations of depression, intense emotional distress and extreme
anxiety are not recoverable on a negligence claim such as the one they attempt to allege here, and
should be stricken as scandalous and impertinent matter.
17. Plaintiffs have not suffered damages in an amount exceeding the compulsory
arbitration limits for this Court, and this case should therefore be directed to the Court's
compulsory arbitration program for disposition.
18. The Amended Complaint should be dismissed with prejudice pursuant to the
doctrine of laches, as Plaintiffs' failure to address the IRS's notices regarding the tax reporting
situation created, perpetuated and/or expanded the harm they now allege.
19. Plaintiffs have failed to appropriately mitigate their alleged damages.
20. Plaintiffs failed to prepare their tax returns and/or properly report their income
related to their settlement with Morgan Stanley, thereby creating or contributing to the tax
liability of which they now complain.
21. The Amended Complaint should be dismissed with prejudice due to Plaintiffs'
unclean hands.
22. The Amended Complaint should be dismissed with prejudice pursuant to the
doctrine of justification.
WHEREFORE, Defendant Morgan Stanley respectfully requests that this Honorable
Court dismiss Plaintiffs' Amended Complaint with prejudice.
-5-
Respectfully submitted:
?v4dpmjk-
?ose?h P. Pohl III
P D No. 82237
Jason A. Spak
PA ID No. 89077
Reed Smith LLP
435 Sixth Avenue
Pittsburgh, PA 15219
(412) 288-3131
Counsel for Defendant
Dated: April 28, 2008
-6-
VlE)C MCATtaN
1, Ted Jahn, acting on behalf of Defendant Morgan Stanley as Executive Director
of Client Reporting, has read Defendant's Answer to Amended Complaint and New
Matter. The statements therein are true and correct to the best of my knowledge,
information, and belief.
I understand that the foregoing statements are made subject to the penalties of 18
Pa. C.S.A. §4904 relating to unsworn falsification to authorities, which provides for
criminal penalties if a person, with intent to mislead, makes a false written statement that
he or she does not believe to be true.
Dated: April 28, 2008
CERTIFICATE OF SERVICE
I hereby certify that, on this _ day of April, 2008,1 served a true and correct copy of the
foregoing Answer to Amended Complaint and New Matter by overnight mail upon the following
counsel:
Peter B. Foster, Esquire
PINSKEY & FOSTER
114 South Street
Harrisburg, PA 17101
Cons I for Defendant
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KOPE & ASSOCIATES, LLC
BY: NATHAN C. VOLPI
PA I.D. No. 314604
3900 Market Street
CAMP HILL, PA 17011
(717) 761-7573
nvolpi(akopelaw. com
PETER GEKAS AND
VERNOICA GEKAS,
Plaintiffs
v.
MORGAN STANLEY, DW, INC.
Defendant
= L_„ 0 COUNTY
ar4f:1i';
Attorney for Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
07-3738 CIVIL
NOW, this
PETITION TO REINSTATE CASE
day of November, 2014, the Plaintiffs, Peter and Veronica Gekas, by and
through their attorneys, Kope & Associates, LLC, and respectfully files this Petition to Reinstate Case
and asserts in support thereof as follows:
1. On August 29, 2014, the Office of the Prothonotary forwarded to Peter Gekas a Notice of
Proposed Termination of Court Case.
2. This Notice required Plaintiffs to file a Statement of Intention to Proceed no later than
October 28, 2014 or this case would be terminated due to inactivity.
3. Plaintiffs' Counsel sent the Statement of Intention to Proceed to the Prothonotary as well
as the Defendant on October 27, 2014 via U.S. Mail, First Class.
4. Plaintiffs' Counsel's office is only, approximately eighteen (18) miles from the
Prothonotary's Office.
1
5. Despite this close distance, due to some unknown event, the Office of the Prothonotary
did not receive the Statement of Intention to Proceed until October 29, 2014.
6. Pennsylvania Rule of Civil Procedure 230.2 reads that "[i]f an action has been terminated
pursuant to this rule, an aggrieved party may petition the court to reinstate the action".
Pa. R.C.P. 230.2(d)(1).
7. Moreover, Rule 230.2 provides that "[i]f the petition is filed within thirty days after the
entry of the order of termination on the docket, the court shall grant the petition and
reinstate the action". Id at (d)(2) (emphasis added).
8. This Petition is being filed within thirty (30) days after the entry of the order of
termination on the docket.
WHEREFORE, Plaintiffs respectfully request this Honorable Court grant the Petition and
reinstate this case pursuant to Pa. R.C.P. 230.2.
Respectfully Submitted,
KOPE & ASSOCIATES, LLC
Shane B. Dope, Esquire
ID # 92207
Nhan Volpi, Esquire
ID # 314604
3900 Market Street
Camp Hill, PA 17011
Attorneys for the Plaintiffs
Peter and Veronica Gekas
2
KOPE & ASSOCIATES, LLC
BY: NATHAN C. VOLPI
PA I.D. No. 314604
3900 Market Street
CAMP HILL, PA 17011
(717) 761-7573
nvolpi@kopelaw.com
PETER GEKAS AND
VERNOICA GEKAS,
Plaintiffs
v.
MORGAN STANLEY, DW, INC.
Defendant
Attorney for Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
07-3738 CIVIL
CERTIFICATE OF SERVICE
I, Nathan Volpi, hereby certify that I have this day served the foregoing documents upon the
persons in the manner indicated below, which service satisfies the requirements of Pa. R.C.P. 440.
Service by U.S. Mail First Class:
Joseph P. Pohl III, Esq.
Jason A. Spak, Esq.
Reed Smith LLP
435 Sixth Avenue
Pittsburgh, PA 15219
Dated this day of November, 2014.
3
# ' ill
an 'B. Kope, Esquire
ID # 92207
,Nathan Volpi, Esquire
ID # 314604
3900 Market Street
Camp Hill, PA 17011
Attorneys for the Plaintiffs
Peter and Veronica .Gekas
Shane B. Kope, Esq. • Hilary P. Vesell, Esq.
Matthew A. Sembach, Esq. ■ Nathan C. Volpi, Esq.
K 0 P:
ASSOCIATES
LAW OFFICES LLC:,
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November 4, 2014
VIA U.S. MAIL FIRST CLASS
Pro thorotary' s Office
1 Courthouse Square
Room #100
Carlisle, PA 17013
Re: Peter and Veronica Gekas v. Morgan Stanley, DW, Inc.
To Whom It May Concern:
Enclosed please find an original of the Petition to Reinstate Case for filing in this matter.
Please also note that a copy has been served on counsel for the Defendant and no copies
need to be returned to my office.
If you have any questions, comments or concerns, please do not hesitate to contact me.
Sincerely,
KOPE & ASSOCIATES, LLC
Nathan Volpi, Esq.
Enclosure
Smart Representation
Main: 3900 Market Street ■ Camp Hill, PA 17011
York: 11 East Market Street • Suite 200 A • York, PA 17401
P 717.761.7573 ■ F 717.761.7572 • kopelaw com
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2JI4 H0V 13 AM 10: 07
CUMBERLAND COUNTY
PENNSYLVANIA
PETER GEKAS AND VERONICA
GEKAS
Plaintiffs
v.
MORGAN STANLEY, DW, INC.
gouuntp of Cumberfanb
IN THE COURT OF COMMON PLEAS
OF THE NINTH JUDICIAL DISTRICT
Defendant 2007-3738 CIVIL ACTION
IN RE: PETITION TO REINSTATE ACTION
ORDER OF COURT
AND NOW, this 12th day of November 2014, upon consideration of Plaintiffs'
Petition to Reinstate Action, it is hereby ORDERED that Plaintiffs' Petition is
GRANTED. The case is hereby reinstated and the Prothonotary is directed to re -open
the case in accordance with Pa.R.C.P. 230.2
Thomas . Placey C.P.J.
Distribution List:
N han Volpi, Esq.
../Joseph P. Pohl III, Esq.
C?� �•
/1144[69.cL
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IN THE COURT OF COMMON PLEAS 1'.� G i;';'y' I,•si� !
OF CUMBERLAND COUNTY, PENNSYLVANIA 1EC 4
7 4,L"-;11: 49
PETER N. GEKAS and VERONICA P.
GEKAS, husband and wife,
Plaintiffs,
v.
MORGAN STANLEY, DW, INC.,
Defendant.
CIVIL ACTION NO. 07-3738
IT COUP
PO,WS YL VA NIA
DEFENDANT'S NOTICE TO CONFIRM
CONTACT INFORMATION FOR
COUNSEL
Filed on behalf of:
Defendant Morgan Stanley, DW, Inc.
Counsel of Record for these Parties:
Joseph P. Pohl III
PA I.D. No. 82237
Reed Smith LLP
Reed Smith Centre
225 Fifth Avenue
Pittsburgh, PA 15222
(412) 288-3828
Donald B. Hoyt
PA I.D. No. 18061
Blakey, Yost, Bupp & Rausch LLP
17 East Market Street
York, PA 17401
(717) 845-3674
IN THE COURT OF COMMON PLEAS
OF CUMBERLAND COUNTY, PENNSYLVANIA
PETER N. GEKAS and VERONICA P. CIVIL ACTION NO. 07-3738
GEKAS, husband and wife,
Plaintiffs,
v.
MORGAN STANLEY, DW, INC.,
Defendant.
DEFENDANT'S NOTICE TO CONFIRM CONTACT INFORMATION FOR COUNSEL
Defendant Morgan Stanley, DW, Inc.l ("Morgan Stanley") files this Notice to Confirm Contact
Information for Counsel in order to ensure that Plaintiffs' counsel and the Prothonotary have
current and correct information regarding Morgan Stanley's counsel for the above -captioned
matter.
1. This matter dates to June, 2007, and has seen extended periods of inactivity.
2. Counsel for Morgan Stanley recently reviewed the docket for the matter and
learned that Plaintiffs' counsel filed a Petition to Reinstate Case ("Petition") on or about
November 6, 2014.
3. In his Petition, Plaintiffs' counsel alleges that he sent a Statement of Intention to
Proceed ("Statement") to Defendant on October 27, 2014 via U.S. Mail. (Petition ¶3). Neither
Defendant nor its counsel ever received any such Statement from Plaintiffs' counsel.
4. In his certificate of service for the Petition, Plaintiffs counsel further asserts that
he served the Petition on Defendant's counsel at Reed Smith by U.S. Mail on November 4, 2014.
1 Effective April 1, 2007, Morgan Stanley, DW, Inc. merged into Morgan Stanley & Co.
Incorporated, and ceased to be a legal entity. Effective May 31, 2011, Morgan Stanley & Co.
Incorporated changed its name to Morgan Stanley & Co. LLC. The correct broker-dealer name
at present is Morgan Stanley & Co. LLC.
Plaintiffs' counsel used a non-current address for Reed Smith, despite the fact that Plaintiffs'
counsel's last filing in 2011 used the proper, current address. Neither Defendant nor its counsel
ever received the Petition from Plaintiffs' counsel.
5. The current and correct information regarding Defendant Morgan Stanley's
counsel for this matter is reflected below, both of whom have previously entered their
appearance. Please direct all future filings and/or communications regarding this matter to both
attorneys of record.
Dated: December 16, 2014
Respectfiul]y submitted,
Donald B. Hoyt
PA ID No. 18061
Blakey, Yost, Bupp & Rausch LLP
17 East Market Street
York, PA 17401
(717) 845-3674
Co -Counsel, for Defendant
P. Pohl III
P • o. 82237
Reed Smith LLP
Reed Smith Centre
225 Fifth Avenue
Pittsburgh, PA 15222
(412) 288-3828
Co -Counsel for Defendant
-2-
CERTIFICATE OF SERVICE
I hereby certify that, on this 16th day of December, 2014, I served a true and correct copy
of the foregoing Defendant's Notice To Confirm Contact Information For Counsel by U.S. Mail
upon the following counsel of record:
Shane B. Kope, Esquire
Nathan Volpi, Esquire
Kope and Associates, LLC
3900 Market Street
Camp Hill, PA 17011
or Defendant