SEPTEMBER NEWSLETTER

FG&I Wins NASD Arbitration. On August 2, 2001, the National Association of Securities Dealers Office of Dispute Resolution issued a decision in favor of FGI's client Aetna Life Insurance & Annuity Company (now part of ING Aetna Financial Services) in an arbitration brought by Claimant William T. Walborn. Claimant, a career annuity agent for Aetna, filed the arbitration in September 1999, claiming, among other things, that Aetna had wrongfully reassigned some of his clients to other Aetna agents, refused to pay him commissions to which he was entitled, and changed his employment status from career agent to broker. Claimant sought $800,000 in compensatory damages, $2.4 million in punitive damages and declaratory and injunctive relief.

Aetna was represented at the arbitration hearing, which took place in Cleveland on May 3-4, 2001, by FG&I attorneys Tom Kraemer and Lisa Parilo. The hearing took place before a panel of three industry arbitrators assigned by the NASD. The panel ultimately ruled in Aetna's favor, ordering Aetna to pay compensatory damages of only $14,000 (an amount Aetna acknowledged at the hearing was due Claimant in commissions earned) and rejecting all of Claimant's other demands for compensatory and punitive damages and denying all requests for declaratory and injunctive relief.