LAWSUITS AGAINST THE SEC.

DEADLINE APPROACHING

Dear Member: It is now well documented that the SEC was a major contributor to the escalation of the Madoff fraud. Since before 1993, the SEC conducted multiple investigations relating to Madoff each of which was woefully decient and negligent in detecting the fraud. According to the SECs own Inspector General, the agencys negligence allowed Madoff to continue his improper operations for more than fteen additional years causing billions in losses to innocent Madoff investors. Given the SECs inept performance concerning its Madoff investigations and to discourage future failures in investor protection, in 2010 NIAP encouraged Madoff victims to le timely Notices of Claim in order to protect and preserve their rights under the Federal Tort Claims Act (FTCA) to recover their damages from the government. In response, hundreds of you led Notices of Claim against the SEC through NIAP. As you recall, NIAP was assisted as well by the rm of Bernfeld, DeMatteo & Bernfeld, LLP, which worked extensively and free of charge to answer your questions and assist us with the lings. Under the FTCA, an agency like the SEC has six months to review and either accept or reject a claim. If the agency fails to act within the allowed six-month review period, the claim is deemed rejected and the claimant is then free to bring a case in court against the government to recover the damages suffered. For those of you who led FTCA claims with the SEC through NIAP last December, that six-month review period has elapsed without any determination on the claims by the SEC. Accordingly, you may now sue in court. PLEASE NOTE THAT THERE IS A STRICT DEADLINE TO START THE COURT CASE AND THAT DEADLINE IS FAST APPROACHING. For most of you who led through NIAP and the Bernfeld rm, please assume the deadline for a lawsuit is December 6, 2011. IF YOU DO NOT ACT BEFORE THAT DEADLINE DATE, YOUR RIGHT TO SUE THE GOVERNMENT FOR YOUR LOSSES AND DAMAGES WILL BE PERMANENTLY LOST Several rms are pursuing lawsuits against the SEC on behalf of their clients (seelist below).While NIAP expressly makes no recommendation of any legal rm, a number of you have asked whether the Bernfeld, DeMatteo & Bernfeld LLP rm (the Bernfeld Firm) which assisted us with the initial Notice of Claim ling, intends to le cases against the SEC that need to be commenced now and if so, how best to contact them. We have been informed that the Bernfeld Firm will be handling FTCA cases for Madoff victims (and also that Dean Lawrence Velvel will be working with them in an of counsel capacity to the Firm). For those of you who led through NIAP and wish to work with the Bernfeld rm, the contact persons at the Bernfeld rm are the same people you previously may have dealt with in connection with the ling of the Notice of Claim (David Bernfeld or Jeffrey Bernfeld). If you are interested, you should contact them directly to discuss your possible participation, the fee arrangement and any other questions you may have. The Bernfeld Firm is located at 600 Third Avenue, New York, NY 10016 and their phone number is (212) 661-1661. To be clear, even if you led your Notice of Claim through NIAP, and through the Bernfeld rm, you are free to use any attorney you choose to represent you. NIAP makes no recommendation as to which rm investors might select. In that regard, we have been reaching out to interested law rms who are available to handle these cases to notify NIAP so that their names and contact information may be posted on the new NIAP SEC Investor Action Center web page: www.investoraction.org. We stress that there is a strict time deadline under the FTCA to commence the Court Case based upon the Notice of Claim you led with the SEC. Your claim will be deemed waived and time barred. Therefore, if you intend to bring an action, please do not delay or wait until the last minute. REMEMBER IF YOU DO NOT FILE BEFORE THE DEADLINE DATE, YOUR RIGHT TO SUE THE

GOVERNMENT WILL BE LOST, EVEN IF THERE IS A SUBSEQUENT COURT DECISION IN A SEPARATE CASE HOLDING THE GOVERNMENT LIABLE FOR DAMAGES BASED ON THE SECS NEGLIGENCE. THE TIME TO ACT IS NOW. Sincerely, Ron Stein, CFP President
Disclaimer: This communication is intended to encourage its recipients to consider legal action. Each recipient is encouraged to seek professional input. This does not constitute legal advice. NIAP cannot be held accountable for any issues that arise from an individuals subsequent legal interactions or actions.

Firms: Bernfeld, DeMatteo & Bernfeld, LLP 600 Third Avenue, 15th Floor New York, NY 10016 Ofce: 212.661-1661 Contact: David Bernfeld/Jeffrey Bernfeld Website: www.bernfeld-dematteo.com Becker & Poliakoff LLP 45 Broadway, 8th Floor New York, NY 10006 Ofce: 212.599-3322 Contact: Helen Chaitman Website: www.becker-poliakoff.com Kachroo Legal Services, L.P. 219 Concord Avenue Cambridge, MA 02138 Ofce: 617.864.0755 Contact: Gaytri Kachroo Website: www.kachroolegal.com Herrick Feinstein LLP** 2 Park Avenue New York, NY 10016 Ofce: 212.592.1400 Website: www.herrick.com Lax & Neville, LLP** 1450 Broadway, 35th Floor New York, NY 10018 Ofce: 212.696-1999 Contact: Barry Lax/Brian Neville Website: www.laxneville.com Wachtel & Masyr, LLP One Dag Hammarskjold Plaza 885 Second Avenue New York, NY 10017 Ofce: 866.526.2877

Website: www.wmllp.com **Not currently taking new SEC lawsuit clients