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National Headquarters 930 East 50th Street Chicago, IL 80615 (773) 373-3366 (Freedom) Office (773) 373-3571 Fax LaSalle Street Project Located within the National Office in Chicago, IL Peachtree Street Project 100 Auburn Avenue Suite 101
Atlanta. GA 30303 004) 525-5663 Office 1404) 525-5233 Fax

IMATICONIAL HEADQUARTEIRM
930 East 50th Street Chicago, iiiinois 60615 Phone: (773) 373-3366 * Fax: (773) 373-3571

October 16, 2010 Mr. T. Grant Callery Executive Vice President and General Counsel FINRA 1735 K Street, NW Washington, D.C. 20006 Dear Mr. Cal fiery: We have received a copy of a letter from Marcia E_ Asquith, Senior Vice President and Corporate Secretary of FINRA, dated October 7, 2010 to Shawn D. Baldwin instructing Mr. Baldwin to file a formal appeal with the SEC in connection with the pending investigation. We have discussed this correspondence with Mr_ Baldwin and he has indicated to us that he is electing not to seek any relief from the SEC. Mr. Baldwin instead will be communicating with Congressman Barney Frank to outline the details of the pending investigation to be forwarded to the GAO, due to the fact that Mr. Baldwin began sending electronic correspondence to the GAO in 2004. As this process continues, our greater concern is that Mr. Baldwin not be subject to overtly harsh treatment given the numerous infractions by others who have either committed fraud or endangered the public. We want to ensure that the process evidenced is not poisoned fruit from a poisoned tree. We also want to be sure that the stance presently exhibited by FINRA is not one based on recidivism, since the initial statements and proceedings, at least in part, appear to be based on inaccurate data, no calculations of net capital and some false assumptions.

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(202) 393-1495 Cal.

During this entire period, it is our understanding that FINRA has elected not to compile any net capital computations for the many allegations of net capital insufficiency_ This was initially the primary reason for the continued investigation and proceedings_ As the proceedings have continued, it seemed that the process was being moved further away from this initial claim of net capital deficiency. From what we have seen, this claim was apparently one of the reasons for an article being published that has been very detrimental to both Mr. Baldwin's reputation, as well as that of CMG, causing both tremendous financial harm_
The initial judgment was based on Mr. Baldwin's stated refusal to provide additional data on an unregulated company, when he stated that he would provide all data on the regulated entity.

Rev. Jesse L. Jackson, Sr., Founder & President Martin L. King, Chairman www.rainbowpuskorg e .,
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Page Two Mr. Callery Transcripts from FINRA proceedings, as well as a recorded telephone message that we believe to be in FINRA's possession, indicate that FINRA enforcement counsel willfully misled the panel. Counsel for Mr. Baldwin outlined this clearly with the panel and NAC, but this evidence does not seem to have been taken into account. During the appeal, the NAC panel issued Mr. Baldwin a 2-year suspension based on Mr. Baldwin not providing information to FINRA examiners. However, per our review of the records, this assertion appears to be false, and is easily verifiable, including by counsel from the SEC who was present when Mr. Baldwin's counsel provided both FINRA and the SEC with a clear outline of the loan to the entity and the process. It was later confirmed that FINRA regulators falsely testified that they had never been made aware of these facts. The false testimony in the first proceeding that required correction, along with statements from both the FINRA examiners and enforcement counsel that they initially did not receive any information from Mr. Baldwin or CMG, who later stated that Mr. Baldwin gave them too much information, led to the NAC decision that certain statements by the FINRA examiners were troubling. Remnants of a continuing pattern seem to remain. Because FINRA seems to have continued to proceed on this specific basis, we have reached out on behalf of Mr. Baldwin because of our concern that certain actions may have risen to a level of undue harassment. We base this concern on the fact that proceedings have continued against Mr. Baldwin even though his broker-dealer has not been active since December 2005. FINRA has continually cited recidivism as the reason for the multiple expulsions and bars that have been leveled against Mr. Baldwin on at least three separate occasions, even though he was completely inactive during the period in question. We also learned of an allegation by FINRA that a customer submitted a complaint to the organization regarding CMG institutional Trading, in response to which FINRA officials requested additional information. In this instance, it was confirmed that the individual was not actually a customer of CMG Institutional Trading. in fact, the individual was not submitting a complaint, but was making an inquiry because the market was volatile and they had read of FNRA's actions against Mr. Baldwin. The individual sent a letter to FINRA urging them not to proceed against Mr. Baldwin. Further, Mr. Baldwin informed FINRA that this was with an unregulated entity and that the individual was requesting an early redemption. Although Mr. Baidwin's position was that FINRA had no jurisdiction in this instance, he indicated that he was forwarding the correspondence as a courtesy. We have a copy of the original submission in our possession, along with a copy of a signed affidavit from the individual attesting to the fact that this individual never submitted a complaint. Mr. Baldwin also directed his Series 24 employees to deliver all documents to FINRA examiners after he saw that the majority of the questions directed to him were focused on matters concerning his personal possessions, including his home, vehicles and other non-regulated entities.

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Page Three Mr. Callery The characteristically personal nature in which the examiners focused on generating an 8210 against Mr. Baldwin, including visiting CMG's offices unannounced to demand documents when they had already been informed that Mr. Baldwin was then presently in Europe, was also of concern. To assist in moving the investigation forward on both sides, we would like to forward copies of bank statements and clearing statements that we have in our possession, along with questions for specific events dating back to the period of 2004-2006, along with leasing contracts, and LLC information for the regulated and non-regulated entities that Mr. Baldwin owned. After a review of these specific documents, respectfully, I would like to request a meeting with you and Mr. Ketchum prior to our intended meeting with Congressman Frank to determine if you believe that there is any point of negotiation, As we indicated previously, it is our ultimate goal to assist both you and Mr. Baldwin in amicably resolving this process_ In the spirit of cooperation, we would like to ask of FINRA during this period, for the following: During the investigation proceedings, to suspend all interne files and links pertaining to Mr_ Baldwin and CMG Institutional Trading LLC; To cease any continued judgments or releases against Mr, Baldwin or CMG. We 2. have observed a continued release of information against Mr. Baldwin and CMG stemming from the 2005 audit; 3. That FINRA kindly forward copies of any correspondence to our office as well, to the attention of Brenda J. Robinson, Special Counsel. In the meantime, we are preparing a packet of documents with specific inquiries for your internal investigation and will be forwarding the same under separate cover for your review. If you should have any additional questions or would like to discuss any matters prior to your review of the packet, please contact Brenda J. Robinson, Special Counsel, at (773)314-6420. Respectfully,

ere Jesse L, Jackson. Sr, ounder and President

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