Mkg Financial Group, Inc.

Allegations: PLANTIFFS ALLEGE THAT THE ADVISOR AND THE ADVISORY AFFILIATE (COLLECTIVELY, "DEFENDANTS") DID NOT INVEST PLAINTIFFS' ACCOUNTS IN ACCORDANCE WITH PLAINTIFFS' STATED GOALS AND OBJECTIVES. PLAINTIFFS ALLEGE DAMAGES ARISING FROM DEFENDANTS': (I)BREACH OF CONTRACT; (II) BREACH OF FIDUCIARY DUTY; (III) NEGLIGENCE; AND (IV) NEGLIGENT MISREPRESENTATION. Status: Final Summary: PLAINTIFFS OPENED ACCOUNTS WITH ADVISOR AT VARIOUS TIMES DURING 2008 AND TERMINATED THEIR ACCOUNTS WITH ADVISOR IN JANUARY 2009. DURING THAT PERIOD, THE STOCK MARKET DECLINED SIGNIFICANTLY. PLANTIFFS' ACCOUNTS ALSO EXPERIENCED LOSSES DURING THAT PERIOD, GENERALLY SIMILAR TO OR LESS THAN THAT OF THE MARKET IN GENERAL. DEFENDANTS INTEND TO VIGOROUSLY DEFEND THE CLAIMS BROUGHT BY PLAINTIFFS.

Allegations: TRANSACTED BUSINESS IN THE STATE OF HAWAII AS A BROKER DEALER WITHOUT BEING PROPERLY REGISTERED. Status: Final Sanction Detail: NA Summary: AN OREGON CUSTOMER MOVED TO HAWAII IN JULY 2005. FIRM WAS CHANGING CLEARING BROKER/DEALER AND DID NOT IDENTIFY THE NON-REGISTRATION UNTIL FEBRUARY OF 2006 AND APPLIED FOR REGISTRATION THROUGH CRD. THE A/C WAS DISCRETIONARY AND TRANSACTIONS TOOK PLACE IN THE ACCOUNT PRIOR TO THE FIRM FREEZING THE A/C. CLIENT TWICE DECLINED RESCISION.