BACKGROUND OF
MASON A. DINEHART III, RFC IN THE SECURITIES FIELD

SUPERVISORY HISTORY

Mr. Dinehart, a Registered Securities Principal with the NASD, was Vice-President, marketing compliance officer and Acting Branch Manager for Boardwalk Capital Corporation, a Southern California based regional financial services firm, from January 1987 until January, 1990.  He served as a branch supervisor for Eric Equities, Inc. from 1991 to 1999 and is currently registered with Empire Securities Corporation as a producing representative and home-office supervisor.  With offices in Los Angeles, Empire is the oldest broker-dealer in Los Angeles, founded in 1964.  He is also the Director of Advertising Compliance for the firm.  Empire is a tax-preparation based broker-dealer with over 100 representatives.  Founded in 1964, Empire is the oldest broker dealer with offices located in Los Angeles, CA. 

While at Boardwalk Capital Corporation, as the marketing and training liaison between the field force of 200 representatives and management, Mr. Dinehart was directly responsible for the marketing and licensing compliance of the firm. He participated in the due diligence function as chairman of the corporate finance committee and was the creator of ScoreCards, an industry recognized evaluation technique specifically designed for analyzing common stocks, IPO's, private stock offerings, bonds, REITS, limited partnerships,  mutual funds and variable annuities. Additionally, he supervised the firm’s insurance and annuity activities and was the author of the firm's securities sales training program.  He was also President of the firm's Registered Investment Advisor.and Director of Marketing Compliance.    He negotiated for and brought in the company's new clearing firm, PaineWebber in 1988 and was responsible for the firm’s recruiting activities.   

He was directly responsible for nearly $600,000 of new firm underwriting revenues as a result of coordinating the investment banking, structure and placement of eight private placement real estate syndication offerings during 1988-89.

Mr. Dinehart is a graduate of California State College at Los Angeles. For thirteen years,1969-1982, he was Vice-President & Branch Manager for Carlsberg Securities Corporation where his responsibilities included the direction of Investor Services and  compliance as well as public and private real estate syndication sales. He directed the sales efforts of over 60 representatives at Carlsberg Securities where common stocks, bonds, mutual funds, life insurance and annuities were sold to investors.  Under his direction, over $40,000,000 of investment capital was raised annually for the purchase of securities, insurance, annuities, pre-developed land and income producing properties.  He was a member of the parent company's Board of Directors form 1971 - 1978.  Carlsberg Financial Corporation, the parent, was primarily a real estate builder and developer.   Between 1982-1986, he held the title of Vice-president, Branch Manager for Westfield Capital Corporation, a real estate securities investment firm in Orange County, California.

From 1965 to 1969, he was Vice President and Manager of Business Development for Union Bank’s corporate headquarters and for seven years prior to that, he was Assistant Vice President in the National Division of Corporate Finance for Bank of America in Los Angeles.

Mr. Dinehart is a life member of the American Institute of Banking (AIB), and a graduate of the American Institute of Banking School of Finance and Taxation.  In 1963 he won the National AIB Public Speaking Contest and in 1965, the National AIB Debate Championship.  In 1967, he coached the winning National Debate Champions for the AIB.  In addition, he has spoken before numerous professional and business associations including the national convention of the National Management Association, the Southern California Conference of the International Association of Financial Planners, Town Hall, the National Association of Accountants and the State Society of CPA`s.  His article on "Selling Syndication Shares Successfully" appeared in Real Estate Review.  In 2002, his diversification article and chart (See Suitability Defined and Explained) appeared in the Summer issue of the Register, a publication by the International Association of Registered Financial Consultants as well as the Winter '02 issue of  The Advisor's Network.  In 2004, he had 2 articles published on expertlaw.com, one on variable annuities and one on junk bonds.  

During 1972, Mr. Dinehart traveled with the Practising Law Institute participating as a marketing compliance spokesman in nationwide seminars on real estate syndication, given to members of the bar and bench.

Mr. Dinehart has been a Branch Manager for 3 firms.  Carlsberg Securities - 1969-1982, for Westfield Capital - 1982 - 1986, for Boardwalk Capital, 1987 - 1989 (Acting Branch Manager) and a Branch Supervisor for Eric Equities, Inc. from 1991 - 1999.  Since 2000,  he has been  with Empire Securities Corporation in Universal City,  CA as a home-office supervisor and Director of Advertising Compliance (see chart below).   .

From 1990 through 2001, as principal of his own firm, Financial Education Network Development, he conducted over 500 financial planning/pre-retirement seminars for the executives of Fortune 100 corporations, nationally. He has provided expert witness testimony in 240 arbitrations (600+ retentions) before the NASD, AAA, PSE and NYSE, and 54 mediations.  He has testified in 22 states, nationally.   He is listed as an expert witness with TASA, Jurispro and Pro/Counsel.  Mr. Dinehart has been qualified and has testified as a Securities Expert Witness before the Los Angeles, Fresno  and Orange County State Courts.   He was also qualified by the Nevada State Court as an Insurance Industry Expert Witness where he testified on behalf of the defendant.  Mr. Dinehart represents claimant's 65% of the time and respondent brokerage firms 35%.  In 2001, he provided expert witness services for Tradeway Securities Corporation in two San Diego arbitrations. In 2002, he represented the  General Partner’s in a disclosure action brought by Limited Partners in a real estate operating entity.  He also represented WMA Securities in one arbitration matter and WMA Insurance in one litigation matter as well as in a Nevada mediation and Page and Ma, Business Management, Inc. in San Diego, California, additional respondent cases.  He was retained by respondent Lincoln Financial Advisors, Moseby Financial & Insurance Services, CNA, North American Company for Life & Health, NPC, SII Investments, Inc., AXA/Equitable Advisors, MONY Securities, Inc., CUNA Brokerage Services and Royal Alliance Associates, Inc.  He has testified on behalf of Financial West Group and Lincoln National Life Insurance Company and Ann Poloko, CFP, IAR.   In 2004, Mr. Dinehart was retained to represent Registered Investment Advisor's Jerry Klein and Steve Peasley of Klein, Pavlis & Peasley Financial Inc. Recently,  he participated as an expert witness in three arbitration matters on behalf of claimant's against two nationally known major wire-house  brokerage firms.  Amounts of $2,500,000, $3,000,000, and $1,300,000 were awarded  to claimant's by the 3 respective arbitration panels.  

Mr. Dinehart continues to engage in personal securities and annuity production.  He currently provides asset allocation services for clients representing over $15,000,000 in assets.  He is currently licensed with Empire Securities Corporation.  Since 1999, he has served as an NASD Arbitrator and has been given assignments on nine cases, one as Panel Chairman.  While six of those cases settled, three went to award. ..   

For the past three years, Mr. Dinehart has participated as both a speaker and panelist in a special seminar program for stockbrokers, "Annual Seminar for Securities Brokers 2000 - 2004", sponsored by Registered Representative and On Wall Street magazines . The full day seminars covered such employee dispute issues as wrongful termination, broker book portability and U-5 negotiation.  He has been a speaker/panelist at both the PIABA Annual Convention (2003) and PIABA mid-year meetings (2004).  In November, 2003, he was interviewed twice concerning securities matters, on KFWB Radio in Los Angeles.   He also was interviewed on KSPA Radio on the subject "The Pitfalls of Variable Annuities".  The entire radio broadcast can be heard on the website www. investtalk.com.  He has been deposed in legal matters as a Securities/Insurance Industry Expert Witness on nine separate occasions.  Each of those depositions resulted in immediate settlements after providing testimony..  ..  

Currently, Mr. Dinehart allocates his time 23% to securities sales; 33% to the sale of insurance & equity index annuities; 44% as a securities industry expert witness and  securities industry arbitrator.  

Licenses: Series 7, 24, 27* 63 and 65(grandfathered) - Real Estate sales* - Life/Variable Annuity.  *Previously held   

                         SUPERVISORY HISTORY OF MASON ALAN DINEHART III, RFC

                                                                RETAIL/WHOLESALE

             FIRM                   DATES             REPS. MANAGED              PRODUCTS

Carlsberg Securities*     10/69 - 9/82        60 Retail/8 Wholesalers      Stocks, bonds

                                                                                                                mutual funds, 

                                                                                                                annuities, life -

                                                                                                                insur. & L.P.'s.

Westfield Capital*           9/82 - 12/86      50 Retail/4 Wholesalers       R.E.L.P.'s.

                                                                                                                annuities & 

                                                                                                                life insur..

Boardwalk Capital***      1/87 - 1/90      200 Retail Reps/110              Stocks, bonds

                                                                  Investment Advisor Reps.     mutual funds, 

                                                                                                                options, ann-

                                                                                                                uities, life ins.

                                                                                                                & L.P.'s.

Eric Equities, Inc. **        12/91 - 7/99       70 Retail Reps.                    Stocks, bonds, 

aka Crown Capital                                                                                   mutual funds, 

                                                                                                                 annuities, L.P.'s..

                                                                                                                 & life insurance

                                     *

Empire Securities Corp.*** 1/01 - pres.   125 Retail Reps.                    Stocks, bonds,                                                                                                                             mutual funds, TIC's, 

                                                                                                                 annuities, L.P.'s,

                                                                                                                 hedge funds &

                                                                                                                 life insurance 

*     Branch Manager

     **    Branch Supervisor

     ***  Supervising Principal/ Director of Advertising Compliance

FEND - Securities Expert Witness
Telephone: (310)641-0377
FAX: (310)649-3663
Email: fendmase@ca.rr.com