AWARD FINRA Dispute Resolution

Case Number: 11-02521 Hearing Site: Houston, Texas

In the Matter of the ArtDitration Between:

Name of Claimant

Lonnie L. Evans, Jr.

VS.

Names of Respondents

Raymond, James & Associates, Inc. Teresa Finney, and Richard Funk

And

Names of nniinter-Claimants

Teresa Finney and Richard Funk

vs.

Name of Counter-Respondent

Lonnie L. Evans, Jr.

^ ^ T l IPP OF THF DISPUTE

Associated Person vs. Member and Associated Persons

p F P P F S F M T A T I O N O F P A R T I E S

Lonnie L. Evans, Jr. ("Claimant") was represented by David E. Dunham, Esq., Taylor Dunham, LLP, Austin, Texas.

Ravmond James & Associates, Inc. ("RJA"), Teresa Finney ("Finney"), and Richard Funk S ' ) herSnafter collectively referred to as "Respondents," were represented by Geoffrey H. Bracken, Gardere Wynne Sewell LLP, Houston, Texas.

FiNRA Dispute Resolution Arbitration No. 11-02521 Award Page 2 of 6

CASE INFORMATION

The statement of Claim was filed on or about June 23, 2011. The First Amended Statement of Claim and Answer to Counterclaim was filed on or about September 7,2011. The Submission Agreement of Claimant was signed on or about June 23, 2011.

The Statement of Answer and Counter-Statement of Claim ("Counterclaim") was filed jointly by Respondents Finney and Funk on or about August 22, 2011. The Submission Agreement of Finney was signed on or about August 16, 2011. The Submission Agreement of Funk was signed on or about August 17, 2011.

The statement of Answer was filed by RJA on or about October 27,2011. The Submission Agreement of RJA was signed on or about September 15, 2011.

CASE SUMMARY

Claimant asserted the following causes of action: breach of contract and wan^anties, promissory estoppel; quantum meruit/unjust enrichment/money had and received; breach of fiduciary duty; conversion; tortious interference with a contract; and civil conspiracy. The causes of action related to agreements between the parties relating to client accounts and commission sharing.

Unless specifically admitted in their Answer, Respondents denied the allegations made in the Statement of Claim and asserted affinnative defenses.

Unless specifically admitted in its Answer, RJA denied the allegations made in the Statement of Claim and asserted affirmative defenses.

In their Counterclaim, Finney and Funk asserted the following causes of action: declaratory judgment; breach of contract/unjust enrichment; and breach of fiduciary duty. The causes of action related to agreements between the parties relating to client accounts and commission sharing.

Unless specifically admitted in his Answer to Counterclaim, Claimant denied the allegations made in the Statement of Claim and asserted affinnative defenses.

RELIEF REQUESTED

Claimant requested an award in the amount of:

Actual/Compensatory Damages $359,298.97 Exemplary/Punitive Damages Unspecified

FINRA Dispute Resolution Arbitration No. 11-02521 Award Page 3 of 6

Interest Unspecified Attorneys' Fees Unspecified Other Costs Unspecified Other Monetary/Non-Monetary Relief Unspecified

RJA requested that the claims asserted against it be dismissed in their entirety and that It be awarded its costs and attorneys' fees.

Respondents Finney and Funk requested that the claims asserted against them be denied in their entirety and that they be awarded their costs and attorneys' fees.

In the Counterclaim, Finney and Funk requested an award in the amount of:

Actual/Compensatory Damages $125,244.00 Exemplary/Punitive Damages Unspecified Interest Unspecified Attomeys' Fees Unspecified Other Costs Unspecified Other Monetary Relief declaration Expungement

Claimant requested that the counterclaims asserted against him be denied and dismissed in their entirety and that he receives an award against Respondents.

OTHER ISSUES CONSIDERED & DECIDED

The AriDitrators acknowledge that they have each read the pleadings and other materials filed by the parties.

Claimant's Amended Statement of Claim added Raymond James and Associates, inc. as a Respondent

On the record at the hearing. Respondents orally amended their Answers to add the affinnative defense of statute of frauds and Claimant orally amended to add the affirmative defense of partial perfomriance to Respondents' statute of frauds.

The parties have agreed that the Award in this matter may be executed in counterpart copies or that a handwritten, signed Award may be entered.

After considering the pleadings, the testimony, and the evidence presented at the hearing, the Panel has decided in full and final resolution of the issues submitted for detennination as follows:

FINRA Dispute Resolution Arbitration No. 11-02521 Award Page 4 of 6

1. ) Claimant's claims, each and all, are hereby denied and dismissed with prejudice;

2. ) The Counterclaim of Teresa Finney and Richard Funk is denied and

dismissed with prejudice;

3. ) All requests for expungement are denied and dismissed with prejudice;

4. ) Other than Hearing Session Fees which are specified below, the parties shall each bear their own costs and expenses incurred in this matter; and

5. ) Any relief not specifically enumerated, including punitive damages and attorneys' fees, is hereby denied with prejudice.

Pursuant to the Code, the following fees are assessed:

Filing Fees

FINRA Dispute Resolution assessed a filing fee* for each claim:

Initial Claim filing fee = $ 1,425.00 Counterclaim filing fee = $ 1,425.00

*The Wing fee is made up of a non-refundable and a refundable portion.

Member Fees

Member fees are assessed to each member firm that is a party in these proceedings or to the member firm that employed the associated persons at the time of the events giving rise to the dispute. Accordingly, as a party, Raymond James, inc. is assessed the following:

Member surcharge =$ 1,700.00 Pre-hearing process fee = $ 750.00 Hearing process fee = $ 2,750.00

As the fonner firm of Evans, Finney and Funk, Citigroup Global Markets, inc. is assessed the following:

Member surcharge =$ 1,700.00 Pre-hearing process fee = $ 750.00 Hearing process fee = $ 2,750.00

FINRA Dispute Resolution Arbitration No. 11-02521 Award Paoe 5 of 6

Hearing Session Fees and Assessments

The Panel has assessed hearing session fees for each hearing session conducted A session is any meeting between the parties and the arbitrators, including a pre-heanng SnSJenL Sith the art)itrators, that lasts four (4) hours or less. Fees associated with these proceedings are:

Two (2) Pre-hearing sessions with Panel x $1,125.00 = $ 2,250.00 Pre-hearing conferences: November 16, 2011

August 17, 2012

Six (6) Hearing sessions x $1,125.00 Hearing Dates: August 27, 2012

August 28, 2012 Auqust29.2012 r$-^00.00

Total Heanng Session Fees

The Panel has assessed $4,500.00 of the hearing session fees to Lonnie L. Evans. Jr.

The Panel has assessed $4,500.00 of the hearing session fees jointly and severally to Raymond, James & Associates, Inc., Teresa Finney, and Richard Funk.

All balances are payable to FINRA Dispute Resolution and are due upon receipt.

1 session 1 session

3 sessions 2 sessions 1 session

= $ 6,750.00

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ARRITRATION PANEL

Jeffrey R. Jury - Public Arbitrator, Presiding Chair Susan Meek, J.D. - Public ArtDitrator

Gary D. Danna - Non-Public Arbitrator

I the undersigned Arbitrator, do hereby affimi that I am the individual described herein and who executed this instrument which is my award.

Concurring AriDitrators' Signatures:

fe/ .leffrev R. Jury Jeffrey R. Jury Public AriDitrator, Presiding Chair

/s/ Susan Meek. J.D. Susan Meek, J.D. Public ArtDitrator

/a/ fiary D. Danna Gary D. Danna Non-Public ArtDitrator

09/10/12 Signature Date

09/10/12 Signature Date

09/07/12 Signature Date

09/10/12 ^ , . Date of Service (For FINRA office use only)

FMRA Dl̂ luti Resolution AibllrallonNa1V0S521 Awaid PMeSofS

^pRITRATION PANEL

Jeffrey R. Juiy - Public/Arbitrator, PrssWing Chair Susan Meek, J.D. - Public ArtDitrator

Gary D. Danna - Non-Publto ArtDitrator

I the undersigned Art,ltrator. do hereby affinn that 1 am the Individual described herein and who executed this Instmment which is my awanl.

Public Afbitrator; ing Chair

Signature Date

Susan Meek. J.D. Public ArtDitrator

Signature Date

Gary D. Danna Non-Public ArtDitrator

Signature Date

Date of Sen̂ lce (For FINRA office use only)

AiiAedanltaLlMEai

j.oaiTPATlQM PANEL

jefftey R. Jury - Public Aibteator. PiwWIng Chair Susan Meek, J.D. - Public Aibttwtpr

Qaiy D. Danna - Non-PubHc AibiUator , I.. «Jiimt4hot I am the Indivklual described herein

I iheundersifliiedArbllfator. do hereto ̂ Inn™^^ y i S S S t i ^ is rny award.

Concuning AibHrators' Signatures:

JeiTrey R-<l"nr • Public Aibilraior, Presiding Chan-

Susan Meek, J.D. Public Aibilrator

Gaiy D. Danna Non-Publk: Arbitrator

SignatureDate

SignatureDate

SignatureDate

^ of Service (F^NRA office use j>nly)

FMRADfenutonMgkiaM MMtanNo. 1140521 Awml PaiwSBfS

ARBrraATIQN PANEL

Jeffrey R. Jury - PubDo Arbitrator, Presiding Chair Susan Meek, J.D. - Public Arbitrator

Gary 0. Danna - Non-Pubilc Arbitrator

I, the undersigned Arbitrator, do hereby afRrm that I am the Individual described herein and who executed this instmment whidi is my award.

Concurring Arfoftratofs' SlgnatuiBS:

Jeifrey R. Jury PubKo Arbitrator. Presiding Chair

Signature Date

ek, J.D. Jtnator

iltrator

Signature Date

signature Date

Date of Sen/Ice (For FiNRA office use only)