UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

PHILIP RALPH BELPASSO; CIVIL ACTION NO:

Plaintiff,

COMPLAINT FOR SECURITIES FRAUD

DEMAND FOR TRIAL BY JURY

SMITH BARNEY, HARRIS UPHAM 6 CO. Incorporated

Defendant,

Plaintiff, Philip R. Belpasso, residing at 40-09 KulLen

Terrace, Fair Lawn. New Jersey; complaining of the defendant says that: JURISDICTION (1) This action is brought to enforce liabilities created by the Securities Act of 1933 as amended (the Securities Act) particularly Sections 12 and 17 thereunder (15 U.S.C. Section 771 and Section 77q); the Securities Exchange Act of 1934 as amended (the Exchange Act), particularly Sections 10 and 35 there- under (15 U.S.C. Sections 78j and 780), and the rules end regulati of the Securities and Exchange Commission promulgated thereunder, particularly Rules 10b-5 and L5c 1-2 (17 CFR Section 240. 10b-5 and LSc 1-2); and the laws of the State cf New Jersey. The amount in controversy exceedsS10,000 exclusive of interest end costs. The jurisdiction of this Court is founded upon section 22 of the Securities Act, section 27 of the Exchange Act (28 U.S.C section 1331)~~nd the principles of pendent jurisdiction.

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Except where expressly otherwise alleged, all purchases of securitie are alleged to have been made directly of indirectly through the use of the mail or other means or instrumentalities of inter- state commerce. PARTIES (2) Defendant, Smith Barney, Harris Upham & Co., Incorperated. ("Smith Barney") is a corporation of the state of New York having its principal place of business at 1345 Avenue

of the Americas, New York, N.Y. and maintains, end at all times

material hereto has maintained, an office in the City of Houston,

State of Texas from which it conducts business. (3) Defendant, Smith Barney, is and at all time material hereto was engaged in the business of investment management and was a broker dealer in stock, bonds, options, and other securities and investments worldwide and was registered as such pursuant

to Section 1 of the Exchange Act (15 U.S.C. Section 780) and

the unifrorm Securities Law, N.J.S.A. 49:3-47 et seq.

(4) Defendant, Smith Barney, is and at all times pertine

hereto was a member firm of the New York Stock Exchange, Inc.

and other National securities exchanges and options exchanges,

as well as the National Association of Securities Dealers, Inc.

(5) Plaintiff is an investor defrauded by defendant

in connection with securities transactons as set forth below.

(6) Plaintiff brings this action in accordance with

the provisions of Rule 23(a) and (b) of the Federal Rules of

Civil Procedure on his own behalf.

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(7) Plaintiff is an investor who was solicited by the registered representative of the Houston office of Smith Barney to purchase end sell options without regard to his invest-

ment objectives. (8) Plaintiff is an investor who was by Smith Barney's false and misleading sssurenc~es and representations, induced to re3inguish control of his investments and to repose complete trust end confidence in Smith Barney's management of his account. (9) Plaintiff is an investor who sustained substantial losses in his securities account which were managed end controlled by the registered fepresentatives of Smith Barney's Houstdn office in a manner which was willfully designed to benefit Smith Barney without regard to any harm thereby to the plaintiff.

·: Ph pR. Be. By: Ph ib ip R. Belp~so

Dated: June 9, 1983

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