Hershey Financial Advisers, Llc

Allegations: FROM 1998-2001 I SOLD A NUMBER OF VIATICAL SETTLEMENTS. WHEN I STARTED SELLING THEM I WAS NOT A REGISTERED REP. IN 1998 A LARGE GENERAL AGENCY FOR FINANCIAL SERVICES IN HARRISBURG PA INVITED ME TO A MEETING INTRODUCING VIATICAL SETTLEMENTS, I WAS UNDER THE IMPRESSION THEY WERE INSURANCE PRODUCTS. AT THE PRESENTATION THEY EVEN TALKED ABOUT A COURT CASE IN ANOTHER STATE WHERE THE JUDGE RULED THEY WERE NOT SECURITIES. AT A LATER DATE WHEN I EXPRESSED SOME INTEREST ABOUT BECOMING SECURITIES LICENSED THEY TOLD ME THERE WAS NO PROBLEM SELLING VIATICALS BECAUSE THEY WERE NOT SECURITIES. OVER THE NEXT COUPLE OF YEARS I BECAME SECURITIES LICENSED. MY BROKER DEALER AT THAT TIME, PAN AMERICAN, TOLD ME THEY WERE NOT SECURITIES AND I COULD SELL THEM. SOMEWHERE AROUND THE END OF 2001 AND INTO 2002 PA SECURITIES STARTED EXPRESSING THEIR BELIEF THAT VIATICALS WERE UNREGISTERED SECURITIES. I HAD STOPPED SELLING THEM PRIOR TO THIS. I BELIEVED VIATICALS WERE INSURANCE PRODUCTS AND AT THE TIME I SOLD THEM THEY WERE NOT CLASSIFIED AS UNREGISTERED SECURITIES. MORE RECENTLY THE PA SECURITIES COMMISSION RULED THAT THEY HAVE ALWAYS BEEN UNREGISTERED SECURITIES. 6/23/05 DOCKET/CASE NUMBER: 2005-02-14 IN CONNECTION WITH A GLOBAL RESOLUTION, T.H.E. FINANCIAL GROUP (THE COMPANY IN HARRISBURG) PAID PA ADMINISTRATIVE ASSESSMENT AND ASSOCIATED COSTS ON BEHALF OF NUMEROUS AGENTS WHO SOLD VIATICATED INSURANCE POLICIES IN PA. THE TOTAL AMOUNT PAID WAS $225,000 BY T.H.E. FINANCIAL GROUP. NO PORTION WAS PAID BY ME INDIVIDUALLY. I WAS A PARTICIPANT IN THIS GLOBAL RESOLUTION CONSENTING TO THE ORDER WITHOUT ADMITTING ALLEGATIONS. RESPECTFULLY SUBMITTED, GERARD CLUNAN Status: Final Sanction Detail: GERARD CLUNAN AND OTHER NAMED RESPONDENTS WERE JOINTLY AND SEVERALLY ORDERED TO PAY $200,000 ADMINISTRATIVE ASSESSMENT AND $25,000 INVESTIGATIVE AND LEGAL COSTS. THE TOTAL AMOUNT OF $225,000 WAS PAID BY THE FINANCIAL GROUP - NO PORITION WAS PAID INDIVIDUALLY. BY GLOBAL RESOUTION WITH NUMEROUS AGENTS WHO SOLD VIATICALS THROUGH THE GROUP. THE FINANCIAL GROUP PAID THE ADMINISTRATIVE ASSESSMENT AND ALL ASSOCIATED COSTS. GERARD CLUNAN DID NOT PAY ANY PORTION OF THE ASSESED FINES. Summary: I BELIEVED AND WAS TOLD VIATICALS WERE INSURANCE PRODUCTS AND AT THE TIME I SOLD THEM THEY WERE NOT CLASSIFIED AS UNREGISTERED SECURITIES.