February 18, 2004
Please refer to a letter dated Aug. 4, 2003, to Mr. William S. Donaldson, SEC Chairman. This letter, which included documentation, shows that my wife, Cancade G. Brooks, and I each sold 21 shares of Legg Mason LMVTX, trade confirmation number 2721643MPW. We received a Client
Confirmation that the shares would be sold at 49.47 a share on Seller Date 07/23/03 for a total amount of 1,044.12. Upon receipt of the check for each of us, the face value of each check was 954.12, which we were not aware of the condition of a selling fee being deducted from the amount stated on the Client Confirmation. I have no way to substantiate it, but I personally think that the closing price of the fund on trade date of 7/21/03 was sumwhat greater than the price of 49.47. Had I known that there was a 9 percent plus transaction fee for selling the shares, I would not have elected to do so. The primary reason to sell the shares was the 15 Custodian Fee we were charged annually for Legg Mason to maintain the fund when the fund was in a downward spiral of its value,and would you believe they cahcrged us the 15 custodian fee upon selling the shares
The first paragraph in my letter to Chairman Donaldson reads, The enclosed information is just another reason that the Securities and Exchange Commission should closely monitor the actions of financial instutitions dealing in Mutual Funds.
I received a call from Daniel J. Maxwell, Compliance Officer, Legg Mason who indicated as a result of the checks having already been cut and mailed, there was nothing else he could do due to these circumstances. We reluctently believed him and cashed the checks, took the 9 percent plus hit and vowed never to do business with Legg Mason again.
Thanks to the New York State Attorney General and the SEC for attempting to make these gangster treat their customers in a fair and reputable manner.
Stanley J. Brooks
Candace G. Brooks