Creative Resources Investment Advisors, Llc

Allegations: TRANSACTING BUSINESS AS AN INVESTMENT ADVISOR REPRESENTATIVE BEFORE RHODE ISLAND LICENSE APPLICATION WAS EFFECTIVE Status: Final Summary: DURING THE PERIOD WHEN CRI, PREDECESSOR OF CRIA, LLC HAD RECEIVED FEDERAL APPROVAL, AND WHILE THE STATE OF RI LICENSING APPLICATION APPROVAL WAS PENDING, SERVERAL ACCOUNTS WERE OPENED AT CHARLES SCHWAB & CO. FOR CLIENTS NAMING CRI AS INVESTMENT ADVISOR TO MANAGE THEIR ASSETS WITH CRI'S KNOWLEDGE AND CONSENT. THEREFORE, IT IS ALLEGED THAT CRI WAS CONDUCTING BUSINESS WITHOUT EFFECTIVE LICENSING OR ENTITLEMENT TO AN EXEMPTION FROM THE LICENSING REQUIREMENTS IN VIOLATION OF SECTION 203 OF THE RI UNIFORM SECURITIES ACT

Allegations: AS A RESULT OF CRI'S AND/OR RICHARD M. SPAZIANO'S ACT(S), ACTION(S), CONDUCT AND/OR FAILURE(S) TO ACT WITH RESPECT TO SETTING UP AND/OR MANAGING A CERTAIN VARIABLE ANNUITY CONTRACT, THE CUSTOMER WAS HARMED AND HAS BEEN CAUSED TO SUSTAIN MONETARY DAMAGES ESTIMATED TO BE $10,850.50 Status: Final Summary: CIVIL ACTION WAS BROUGHT BY THE SPOUSE OF A DISGRUNTLED FORMER EMPLOYEE REGARDING THE FAILURE TO FOLLOW THROUGH ON THE CORRECTION OF FUNDS BEING TRANSFERRED FROM A FIXED ACCOUNT TO THE GROWTH ACCOUNT UNDER AN AUTOMATIC DOLLAR COST AVERAGING PROGRAM OVER A PERIOD OF FOUR YEARS. THE ERROR WAS DISCOVERED AND RECTIFIED ONCE, BUT IN THE TRANSITION TO A DIFFERENT BROKER DEALER, THE REOCCURENCE OF THE ERROR WENT UNDETECTED. RICHARD M. SPAZIANO, CREATIVE RESOURCES INC., GUARDIAN INSURANCE COMPANY, GUARDIAN INVESTORS SERVICE CORP, ROYAL ALLIANCE ASSOCIATES, INC. AND ANCHOR NATIONAL LIFE INSURANCE COMPANY WERE NAMED IN THE COMPLAINT. THE COMPLIANT WAS SETTLED WITH ROYAL ALLIANCE ASSOCIATES, INC. PAYING $14,777.66 IN DAMAGES. RICHARD M. SPAZIANO AND CREATIVE RESOURCES INC. WERE DISMISSED WITH PREJUDICE ON 02/27/1999.

Allegations: DURING THE PERIOD WHEN CRI, PREDECESSOR OF CRIA, LLC HAD RECEIVED FEDERAL APPROVAL, AND WHILE THE STATE OF RI LICENSING APPLICATION APPROVAL WAS PENDING, SEVERAL ACCOUNTS WERE OPENED AT CHARLES SCHWAB & CO. FOR CLIENTS NAMING CRI AS INVESTMENT ADVISOR TO MANAGE THEIR ASSETS WITH CRI'S KNOWLEDGE AND CONSENT. THEREFORE, IT IS ALLEGED THAT CRI WAS CONDUCTING BUSINESS WITHOUT EFFECTIVE LICENSING OR ENTITLEMENT TO AN EXEMPTION FROM THE LICENSING REQUIREMENTS IN VIOLATION OF SECTION 203 OF THE RI UNIFORM SECURITIES ACT. Status: Final Sanction Detail: RESPONDENTS, ROBERT A. SAVOIE AND RICHARD M. SPAZIANO WERE HELD JOINTLY AND SEVERALLY LIABLE FOR AND PAID A CIVIL PENALTY TO THE DEPARTMENT IN THE AMOUNT OF $2,000.00 UPON CONSENT TO ENTRY OF THE ORDER ON 5/31/1994. Summary: SETTLED BY ENTRY OF CONSENT ORDER AND PAYMENT OF CIVIL PENALTY 5/31/1994