Memphis Capital Management, Llc

Allegations: THE PARTNERSHIP INVESTED IN A TOTAL OF SEVEN (7) USDA LOANS, THREE (3) OF WHICH ULTIMATELY WERE DETERMINED TO BE FRAUDULENT AND WHICH FFF HAD BOUGHT BACK FROM THE PARTNERSHIP. IN THE ACTION, OVERALL RECEIVER ASSERTS A "CLAWBACK" CLAIM IN THE AMOUNT OF APPROXIMATELY $22,647,000, WHICH IS THE AMOUNT PAID BY FFF FOR THE THREE (3) LOANS, PLUS THE INTEREST IN THE AMOUNT OF $547,000 EARNED BY THE PARTNERSHIP DURING THE HOLDING PERIOD. THE OVERALL RECEIVER HAD ESTIMATED THE RECOVERY RATE TO BE PAID TO CREDITORS, WHICH THE PARTNERSHIP LIKELY WOULD BE IF IT WERE DETERMINED TO BE LIABLE ON THE "CLAWBACK" CLAIM, AT 47.5%. SINCE THE TIME OF THAT ESTIMATE, THE OVERALL RECEIVER HAS COLLECTED ADDITIONAL MONIES SO THE RECOVERY RATE COULD BE HIGHER. Status: Pending Summary: THE ACTION RELATES TO THE PONZI SCHEME THAT THE ADVISOR FIRST LEARNED OF ON SEPTEMBER 30, 2014, WHICH FFF PERPETRATED IN CONNECTION WITH THE PURCHASE AND SALE OF U.S. DEPARTMENT OF AGRICULTURE BUILDING & INDUSTRY LOANS ("USDA LOANS"). AS HAS BEEN ADMITTED BY THE PERPETRATORS OF THE FRAUDULENT SCHEME, FFF SOLD TO PENNANT AND THE PARTNERSHIP, IN THE ESTABLISHED SECONDARY MARKET FOR THOSE INSTRUMENTS, NON¬EXISTENT LOANS MADE TO FAKE BORROWERS. THE PARTNERSHIP DID NOT KNOW THAT FFF, AN APPROVED USDA LENDER, HAD FORGED THE DOCUMENTS NECESSARY FOR "GOOD DELIVERY" OF THE LOANS.

Allegations: VIOLATIONS OF THE BROKER-DEALER REGISTRATION PROVISIONS OF THE EXCHANGE ACT BY A TRADING FIRM. Status: Final Sanction Detail: CEASE AND DESIST ACTING AS UNREGISTERED BROKER-DEALER. PAY DISGORGEMENT $165,695.10. PAY CIVIL MONEY PENALTIES, $50,000 BANES CAPITAL MANAGEMENT, $5,000 JOEL BANES, Summary: ORDER INSTITUTING PROCEEDINGS ENTERED ON MARCH 26, 2015 IN WHICH RESPONDENTS WITHOUT ADMITTING OR DENYING FINDINGS THEREIN WAS ORDERED TO CEASE AND DESIST ACTING AS UNREGISTERED BROKER DEALER PAID DISGORGEMENT AND CIVIL PENALTIES RELATING TO TRANSACTIONS CONCERNING NEW ISSUES OF CORPORATE DEBT.