Free Affidavit - District Court of California - California

Case 3:07-cv-02844-JSW Document 47-6 Filed 11/14/2007 Page1 0f3
AFFIDAVIT OF JEFFREY BLEY
STATE OF OHIO :
1 SS
COUi~lT`r' OF HAIVZILTON : -
Jeffrey Biey, first being duty sworn according to iaw, deposes and states that he has
persona} knowledge of matters set forth herein except as specifically noted otherwise, and further
states as follows:
1. I arn Vice President, Compliance with The ON. Equity Sales Company
("ONESCO"), based in Cincinnati, Ohio.
2. ONESCO is a fuii service retail brokendeaier registered in ali 50 states.
ONESCO, through its more than 1,000 registered representatives, offers a variety of investment
products, including standard brokerage services; mutual funds; variable insurance prodncts; and
Section 529 plans.
3. Gary L. Lancaster (‘°Lancaster”) was associated with UNESCO as a registered l
representative, on an independent contractor basis, from March 23, 2004 until ONESCO
terminated his registration on Iannary 3, 2005.
4. Frior to March 23, 2004, ONESCO had no reiationsitipwempioyment,
independent contractor, or otherwise——-with Lancaster.
5. Prior to March 23, 2004, OWSCO exercised no control or supervision over
Lancaster.
6. ONESCO has not served as an underwriter or promoter for or otherwise had any
involvement with the Lancorp Financial Fund Business Trust (the "Lancorp Fund?).
7. ONESCO’s registered representatives, including Lancaster, were never authorized
to recommend and/or participate in transactions involving the Lancorp Fund.

Case 3:07-cv-02844-JSW Document 47-6 Filed 11/14/2007 Page 2 of 3
8. Lancaster never sought ONESCO’s approval with respect to his involvement with
the Lancorp Fund, nor did he ever seek ONESCO’s approval with respect to his
recommendations and/or participation in transactions involving the Lancorp Fund.
9. I understand that Lancaster has filed a declaration in the case styled Th O.N.
Equity Sales Company v. Betty Wallace, currently pending in the Southern District of California,
in which he states that he provided ONESCO with express written notice of his involvement with
the Lancorp Fund. This statement is untrue.
li}. ·Lancaster’s contention that he provided ONESCO with written notice of his
involvement with the Lancorp Fund is directly contradicted by the NASD‘s finding in its Letter
of Acceptance, Waiver and Consent with Lancaster, that "Lancaster failed to provide written
notice of his participation in these securities transactions to ON. Equity? A copy of the Letter,
executed by Lancaster on August 10, 2006, is attached hereto as Exh. 1.
il. ONESCO does not have nor has it ever had a customer relationship with Betty
Wallace, the Betty Wallace Trust of 1992, or the Betty Wallace Employees Retirement Trust—»—»~
Betty Wallace Profit Sharing Plan 002 (collectively, "Wallace").
12. UNESCO has never entered into any type of contractual arrangement with
Wallace.
13. ONESCO does not possess nor has it ever possessed (other than items obtained as
pan of this litigation) any documents or records relating to Wallace.
id. ONESCO does not have an express agreement to arbitrate any disputes with
Wallace.
2

Case 3:07-cv-02844-JSW Document 47-6 Filed 11/14/2007 Page 3 of 3
15. Absent discovery, UNESCO will have no way of knowing what representations
were made to Wallace, by whom, and at what time, nor will it have access to other facts that
would shed light on Wal1ace’s September l'7, 2003 decision to invest in the Lancorp Fund.
16. The limited records and inforrnation recovered in these proceedings, to date, have
been obtained solely through the efforts of counsel, without the availability of formal discovery.
Further Affiant sayeth naught.
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