Free Motion for Preliminary Injunction - District Court of California - California

Case 3:07-cv-02844-JSW Document 30-3 Filed O9/06/2007 Paget 0f3
AFFIDAVIT OF JEFFREY BLEY
STATE OF OHIO : _
: SS
COUNTY OF HAMILTON 2
Jeffrey Bley, first being duly sworn according to iaw, deposes and states that he has
personal lrnowiedge of matters set forth herein except as specifically noted otherwise, and further
states as follows:
i. I ani Vice President, Compiiance with The ON. Equity Sales Company
("ONESCO"), based in Cincinnati, Ohio.
2. ONESCO is a foil service retail brokendealer registered in all 50 states.
ONESCO, through its more than 1,000 registered representatives, offers a variety of investment
products, including standard brokerage services; rnutuai 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. l
4. Prior to March 23, 2004, ONESCO had no relationship»»-employnient,
independent contractor, or otherwisewwith Lancaster.
5. Prior to March 23, 2004, ONESCO exercised no control or supervision over
Lancaster.
6. ONESCO has not served an underwriter or promoter for or otherwise had any
involvement with the Lancorp Financ:i.al Fund Business Trust (the "Lancorp Fund").
7. ONESCO’s registered representatives, inciuding Lancaster, were neverauthorizerl
to recommend and/or participate in transactions involving the Lancorp Fund.
I EXHIBIT U

Case 3:07-cv-02844-JSW Document 30-3 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 ONESCCTS approval with respect to his
recommendations andfor participation in transactions invoiving the Lancorp Fund. .
9. I understand that Lancaster has filed a declaration in the case styled The QN.
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. La.ncaster’s contention that he provided ONESCO with written notice of his
involvement with the Lancorp Fund is directly contradicted by the NASD’s tinding 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 CIN. Equity? A copy of the Letter,
executed by Lancaster on August 10, 2006, is attached hereto as Exh. l.
ll. UNESCO does not have nor has it ever had a customer relationship with Betty
Wailace, the Betty Wallace Trust of 1992, or the Betty Wallace Employees 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 titigation) any documents or records relating to Wallace.
i4. ONESCO does not have an express agreement to arbitrate any disputes with
Wailace.
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Case 3:07-cv-02844-JSW Document 30-3 Filed O9/06/2007 Page 3 of 3
15. Absent discovery, ONESCO will have no way of mowing what representations
were made to Wallace, by whom, and at what time, nor will it have access to other facts that
would sheé light on Wal1ace’s September 17, 2003 decision to invest inthe Lancorp Fund.
E6, The limited records and information recovered in these proceedings, to date, have
been obtained solely through the efforts of counsel, without the availability of formal discovery.
Further Aftiant sayeth naught.
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Sworn to and subscribed in my presence thisgij day of so LLL ;g , 2007.
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