255 State Street, 7th Floor Boston, MA 02109 Office: Fax: e-mail: A Focus on Technology Business riwemaillogosm.gif From: Noam Chomsky [mailto: Sent: Sunday, August 06, 2017 11:20 AM To: Gene Landy Cc: Valeria Chomsky; Deborah Pechet Quinan Subject: Re: Bainco Matters Below. Noam On Fri, Aug 4, 2017 at 5:45 PM, Gene Landy c wrote: Hello Noam, After discussion with Mr. Katz, I do understand the "manual adjustment" of $150,000. This relates to the calculation of your IRA yearly required minimum distribution (RMD ), which is based on the year-end IRA valuation. Bainco uses two third parties to act as the holders of your investments. - Pershing holds the publicly-traded investments. EFTA00849506

- Millennium holds the "special" private investments, which as we discussed, have mostly failed. I am not sure what form of Millennium statement you receive. I have asked Bainco for a copy of this. While I was alone, I may or may not have received statements, but wasn't paying much attention. Since I have been with Valeria, we have not received any statements from Millennium. For tax purposes, the IRS requires that you withdraw from the IRA at least the RMD amount each year, with penalties if you do not do so. The year-end balance of the Millennium account was $150,000. For that reason, Bainco added this amount to the Pershing account balance to make up the number used to calculate the RMD. This was the "manual adjustment." The Millennium account number has now decreased by $75,000, due to the write off of the "Outsmart" investment. Therefore, next year the "manual adjustment" will be less. Thanks. If I understand, then, it is a fairly routine action. As we have discussed, you have a potential claim against Bainco for recommending these various private investments in the first place. If you want to bring such as claim, let me know. As discussed in my previous memorandum, such claims will be barred by the applicable statute of limitations if not filed in court in a timely fashion. Could you let us know what the time restrictions are. We're taking the preliminary steps necessary to pursue this matter. Could you recommend a law office that might be willing to take on this case. Regarding the Bainco fee amounts and the allocation of this company's fees, I asked Mr. Katz for more information, which he said would be forthcoming next week. Deb sent you an email on August 2 that addressed the ownership of your condo in Cambridge. If you have additional questions about that, please let her know. EFTA00849507