Free Motion for Discovery - District Court of California - California

Case 3:07-cv-02844-JSW Document 32-3 Filed O9/06/2007 Page:1 of3
AFFIDAVIT OF JEFFREY BLEY
STATE OF OHIO :
: SS
COUNTY OF HAMILTON :
Jeffrey Bley, first being duly sworn according to law, deposes and states that he has
personal knowledge of matters set forth herein except as specifically noted otherwise, and further
states as follows:
l. I am Vice President, Compliance with The O.N. Equity Sales Company
("ONESCO"), based in Cincinnati, Ohio.
2, ONESCO is a full service retail broker—dealer registered in all 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 products; and
Section 529 plans.
3. Gary L. Lancaster ("Lancaster") was associated with ONESCO as a registered
representative, on an independent contractor basis, from March 23, 2004 until ONESCO
terminated his registration on January 3, 2005.
4. Prior to March 23, 2004, ONESCO had no relationship-—employment,
independent contractor, or otherwise--with Lancaster.
5. Prior to March 23, 2004, ONESCO 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.
ii S Hin 2 3 i,li‘
~ 0 B

Case 3:07-cv-02844-JSW Document 32-3 Filed O9/06/2007 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. l understand that Lancaster has tiled a declaration in the case styled The 0.N.
Eguity 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.
l0. ·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 O.N. Equity." A copy of the Letter,
executed by Lancaster on August l0, 2006, is attached hereto as Exh. 1.
ll. 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 Employee’s Retirement Trust-—
Betty Wallace Profit Sharing Plan 002 (collectively, "Wallace").
12. ONESCO 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
part of this litigation) any documents or records relating to Wallace.
14. ONESCO does not have an express agreement to arbitrate any disputes with
Wallace.
2

Case 3:07-cv-02844-JSW Document 32-3 Filed O9/06/2007 Page 3 of 3
15. Absent discovery, ONESCO 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 Wallace’s September 17, 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 Afiiant sayeth naught.
Jef ih Bley
Sworn to and subscribed in my presence thisqgé day of ML ;,{ , 2007.
&@¢r/ca .. ZM
Notary Pu
I A »~,,, llrll 6
"”*°"""622 ;o'“§\i// Q; ~A~cv.i.iii;u>
· ge pg Notary Public
gvir .A,§ lil dndfl-`if WPG State 0fOhis
g ; My Commission Expires
2// ·-»i,g ;;gz:\O `cg gym; gid, EO?}
0
3

Case 3:07-cv-02844-JSW

Document 32-3

Filed 09/06/2007

Page 1 of 3

Case 3:07-cv-02844-JSW

Document 32-3

Filed 09/06/2007

Page 2 of 3

Case 3:07-cv-02844-JSW

Document 32-3

Filed 09/06/2007

Page 3 of 3