As a Constant Patrol subscription customer, you receive the highest level of protection that IW offers: monthly update reports, weekly searches of the IW database, immediate notification of new information, a subscription to the Investor’s Watchdog Sentinel ,and one QualifEye™ Analysis annually, allowing you to track developments in any non-registered investment.

Broker Name: John B. Seller

This Broker Currently Works For: Mode Securities, Inc.

Since the last report, have we found out anything else about him?

Mr. Seller has moved from Savannah, Georgia to Hilton Head, South Carolina. Property records show that he sold his home for $550,000 and bought his new home for $1.1 million.

Since the last report he has started a new business called, Millionaire Brokers, LLC.

(1) Yes. Mr. Seller left Median Brokers, Inc. in June 2007, and moved to Mode Securities, Inc. NASD records indicated that he was terminated by Median. By the time we send you your next Constant Patrol report, more details of the circumstances of the termination should be available.



Yes. Since the last report, the two arbitration actions identified in earlier Constant Patrol reports have been resolved. Each alleged that Mr. Seller engaged in unsuitable variable annuity sales (see glossary). Median settled one of those actions for $240,000 (2). An arbitration panel in the other case entered an award against Mr. Seller and Median in the amount of $145,000 (3).

In light of these developments, Investor’s Watchdog recommends that the customer review her account carefully for signs of unauthorized trading and/or churning and bring any problems to the attention of the Mode compliance department whose address is 123 Trust Avenue, Tampa, Florida, 34567. If the customer needs legal advice, IW can recommend an attorney experienced in such matters. Call IW toll free at 866-423-WDOG (9364) for a referral.

Since the last report, has anything changed about Mr. Seller’s firm?

Mr. Seller’s new firm, Mode is an independent broker-dealer headquartered in Tampa. Mode has been sanctioned numerous times in the past ten years, and twice since the last Constant Patrol report.

In July 2007, the U.S. Securities and Exchange Commission issued a cease-and-desist order against Mode alleging that its research reports were inaccurate due to conflicts of interest concerning Mode’s desire to gain investment banking business from companies on which its analysts issued opinions.

Also in July 2007, the NASD censured and fined Mode $1 million for failing to timely file 600 amendments to Forms U4 and U5 which, if timely filed, would have put the public on notice of 600 additional regulatory actions or criminal actions by Mode representatives.

(4) In light of the forgoing, IW has lowered Mr. Seller’s IW score to 42 on a scale of 40 to 80. This is a five point drop from the initial Broker Safety Score of 47. A score of 40 indicates a broker that, in IW’s opinion, the client should avoid altogether. A score of 80 indicates a broker who has been tested by bear markets and yet has no customer complaints, no disciplinary history, no negative information in the IW database, and no areas that raise concern for a former SEC Enforcement Branch Chief.

Your next Constant Patrol Subscription Update will be generated on August 15, 2007.

You will receive the next issue of the Investor’s Watchdog Sentinel by October 31, 2007.

You have not yet used your QualifEye analysis this year. Be sure to let IW investigate any non-registered investment before you invest.

---

(1) Facts reported to the customer by telephone and email on June 29, 2007.
(2) Facts reported to the customer by telephone and email on June 30, 2007.
(3) Facts reported to the customer by telephone and email on June 30, 2007.

(4) IW rates brokers on a 40 to 80 scale with a higher score reflecting IW’s opinion, based on historical information, that the investor’s assets are safe from intentional or reckless misconduct by the broker or his firm. IW expresses no opinion on the value of the customer’s investments or on the broker’s investment selection ability. A single new fact can radically change the IW score and indicate a need for immediate action. For timelier notification of red flags, please consider upgrading to IW’s Constant Patrol™ subscription.