J. David Golub - Page 6




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          The letter concluded:  “We do not feel that we can consent to act            
          on your behalf in the future in connection with this account, and            
          we respectfully request that you transfer your account to another            
          firm.”                                                                       
               In reply, petitioner made a handwritten notation on a copy              
          of Mr. Cabell’s letter to him, stating:  “Your statement of the              
          facts of this case is not correct.  As a result, I believe it is             
          necessary for us to meet to discuss the ‘exact’ nature of my                 
          claims.”  Petitioner then wrote the following letter to Mr.                  
          Cabell:                                                                      
                                                        May 12, 1987                   
               Dear Mr. Cabell:                                                        
                    Your failure to respond to my request for an                       
               appointment to reconcile the facts and issues with                      
               respect to my account will only tarnish your defense to                 
               support your position before any impartial tribunal.                    
               In essence your solution is to create a “FORCED”                        
               LIQUIDATION where I must sell out securities regardless                 
               of the market timing.  Also, by forcing me to transfer                  
               this account to another Wall Street House, you believe                  
               that you can sweep all of your past improprieties under                 
               the rug with supposedly no trace left for public                        
               scrutiny.  The Churning transactions effectuated by                     
               your salesmen are a matter of record.  CASE IN POINT: I                 
               have documented all short positions (PUT TRANSACTIONS)                  
               sold and written in my account on a trade date basis                    
               where the WALL STREET JOURNAL and NEW YORK TIMES                        
               FINANCIAL PAGES listed an S or R.  Obviously, in such a                 
               case the purchaser had to be KIDDER, PEABODY as                         
               principal.  Shortly, thereafter, I was put stock where                  
               the expiration period was greater than six months and                   
               there was a less than 10% decline in the security price                 
               from the trade date market price.                                       
                    Who put the stock in my account and for what                       
               reason?  What other explanation?  Why is KIDDER,                        





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