Free Declaration - District Court of Arizona - Arizona

EXHIBIT O
l Case 2:03-cv-02323-JWS Document 115-16 Filed O7/26/2007 Page 1 0144

- T .·:;9ri¤ir!al. Mssseseee .... Q .. . .. ..»... - __ _1..,.W, _. _.4_4 .,4,,_ - A,.. .__._ _.V.. . ...., ... . . . .. - - .
· ‘‘`‘ E r;°fii:;’?i-‘ii··;i; ‘···‘ ‘»‘·—-· ¤¤ V 2, ··-. .. ¤ ' .A-. i .
_ . Sent; Thursday, July 27, 2000 9:38 AM `
_ ‘ To: _ Grant Seeger `
" Cc: , -Bill Kenyon; Nicole McDermott; Nancy Murphy
_ ` ;_ Subject: Potential Shut-down of Mutual Fd Trading _
·- . 4. RE: i Hartz Tracing ‘
o_ _ i ' l believe we will receive notice (soon)j that our DCC&S trades will no longer be accepted by one
_ j¤ · OF more of our mutual fund partners. This is because of the churning that has been visible. we _
’ _ ‘ · have already been contacted by three separate funds. They have to know this is not ERISA
money and that is an issue for which they very conceivably will punish STC. »
J - Obviously we will still be responsible for lguaranteed NAV" to our TPAs and trading suspension .
. will place us in the direct line of tire. ~
4 A ·AlS0. at the transfer agent level (where a number of funds are processed at the same facility by
· ~ the same people) word of such suspension will spread rapidly. l have been invited to attend the
‘ lnv. Co. Institute Meeting in Washington where a number of fund representatives assemble, I do
5 _ P not want this churning concept to even be associated with STC because that would be the venue
, l _ _ _ lwhere it would come up.
` - ` l Accdg. tothe agreements we have wlthe funds (and I have read them all) they can already
_ suspend our trading privileges based on the events of the past few weeks. Pls address this with
- the Hartz people, l will be glad to speak with them if needed. _
_ ` AGREN B&;DO REPORTING
‘ `_ i · G ·"Z·¢> 7
Case 2:03-cv-02323-JWS Document 115-16 Filed O7/26/2007 Page 2 of 4 ‘·

· n · -·—:Original Message---
_ · From: . Nancy Murphy ‘
$¤¤t: Thursday, July 27, 2000 10:12 AM ·
T¤= _ ` Jay Marran; Grant Seeger -
_ Cc: Bill Kenyon; Nicole McDermott
. · _ Subject: RE: Potential Shut·down of Mtrcual Fd Trading
- Jay, _ `
_ l _ 4 Thank you for alerting us to this very serious situation. Being a good partner with the fund
companies is critical to our retirement plan business. By allowing Hartz Trading to trade through ‘
· _ the _DGC& S platform we are violating the representations we have made to the funds that allow _ ‘
_ us to get NAV and various penalty waivers for retirement plans. Hopefully we can correct this _
situation before our fund partners become unwilling to deal with Security Trust Company. l feel
· . that our image and reputation are at stake here. _ .
l _` Nancy U -
. _ 'P.S. About 2 years ego Rydex imposed T+2 settlement and a pre-notification of purchases and
.· redemptions requirement on FTC because the advisors on the DATAlynx platfomt were timing
- trades. This situation did not involve any qualitied retirement money, but may have involved
- some IRAs. It makes trading really messy.
` Case 2:03-cv-02323-JWS Document 115-16 V Filed O7/26/2007 Page 3 of 4 ··

——·-Original Message--- _
_ ` · From: Bill Kenyon
Sent: Thursday, July 27, 2000 10:16 AM
_ T0: ‘ · Grant Seeger .
· _ _ C¤= ` J3y`Manan; Nancy Murphy; Nicole McDermott "
_ Subject: . HN: Potential‘Shut—down of Mutual Fd Trading
;. · I wouldhave called you.but with your phone being “wet” l thought this would be the best way to t
_ ‘ communicateg 1 · ‘
. . _. I . · . After my discussions with Nicole which was a follow upto the conference call you.had with Noah V
- yesterday amt the increasing concerns that have been communicated by Nicole, now Jay and ·
. 1 s_ .Nancy lthink it is cnticallyimportant that we discuss the Hartz relationship as soon as possible.
‘ As l indi •·= ted the other day in our call with Nicole it appears this activity has the sincere potential
· ‘ to effect our core business, not only operationally but also as a negative impact in the_mutual fund
’ marketplace in general. lf that is the case I can not see the value in continuing with this activity.
L William A. Kenyon _ "
. li
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