What Happened To Larry Klein and NF Communications

The "Javelin Gambit" in pictures - Part I

Larry routinely discussed his "challenges" with the NASD and everyone that ever worked for him heard him discuss starting a "new company"... one without his "finger prints" on it...

He THOUGHT he could do that with "Javelin".

NF Communication is "dissolved" on 12/15/06 -- the doors were closed for good. However, just days before he informed the employees that he was preparing to fire, he came up with "the big idea".

Here's the first step... Javelin Marketing's website on 12/16/06

The "Javelin Gambit" in pictures - Part II

Larry disappears and this new guy "Bob" pops out of a hat with the same damn credentials... how in the world does that happen?

The "Javelin Gambit" in pictures - Part III

The "Javelin Gambit" in pictures - Part IV

The "Javelin Gambit" in pictures - Part V

Larry's reply to the "compliance guy"

Name Withheld,

Thank you for your email. Even though I will be leaving NF Communications in 2 days and have nothing to do with that company or with CRFA after Feb 2 2007, here are the facts to set the record straight.

I was never accused of fraud. That is absurd and plain wrong. I have never been involved in an action by the SEC. Please read attached and I have the NASD transcript to prove everything therein. If you would like them, I am happy to send a copy.

By the way--I had the NASD facts reviewed by a REAL judge and I have attached his comments.

The Businessweek and Kiplinger articles are groundless as they do not directly comment on CRFA but all "senior credentials." No one from these publications have attended a course or seen the self study materials. Therefore, it would be impossible for them to know the validity of the materials. Would you like to do some due diligence? The Society would be happy to send you a copy so you can have the facts. (The CFP Board did review the program and gives 30 CE hours to CFP designees for CE credit.) The Society has lobbied for tighter regulations of senior credentials and senior advisors and you can see our comment letter filed with the State of Massachusetts. http://www.sec.state.ma.us/sct/sctpropreg/propreg.htm

The issue would never apply to anything I have written or issues by NF Communications: http://www.nasd.com/RulesRegulation/NoticestoMembers/2006NoticestoMembers/NASDW_017265

Our materials never ever recommend a product or suggest that a client buy anything. That's for the rep to do. The NASD may have a hard time distinguishing between information and a solicitation because they son;t understand that the two are different.

Thank you for the opportunity to clear this up. If you ask your reps who have used my services or those of NF Communications, you'll find I have made a positive difference in their business with integrity. You can read comments at www.nfcom.com/feedback. I know its easier to rely on hearsay and the press but if you dig a little, you can get the truth.

Thank you and best of luck to you and Brooksteet and your reps. Your firm and Stan have always impressed me.

Larry Klein

-----Original Message-----
From: compliance@nfcom.com [mailto:compliance@nfcom.com]
Sent: Wednesday, December 13, 2006 12:17 PM
To: lk@nfcom.com
Subject: FW: Current NASD Advertising violations

Someone didn't like Larry I think...

Please comment and advise.

Thanks,

Name withheld
National Branch Compliance Manager,
Brookstreet Securities
2361 Campus Drive #210 Irvine, Ca 92612
1(800)268-2578 ext 181
FAX (949)679-6730
Name withheld@mail.bkst.com

-----Original Message-----
From: Name withheld [mailto:chris52649@yahoo.com]
Sent: Saturday, December 09, 2006 8:51 AM
To: Name withheld
Subject: Current NASD Advertising violations

The registered representatives of your firm are using marketing products from Larry Klein and his two companies NF Communications http://www.nfcom.com/ and the CRFA “Professional Designation” and marketing system http://www.crfa.us/.

1) In 1996 Larry Klein was expelled on a lifetime basis by both the Securities & Exchange Commission and the NASD for fraudulent business activities with senior citizens and was ordered to pay over $400,000 in restitution for his marketing strategies used against senior citizens http://www.sec.gov/litigation/opinions/3437835.txt

2) In 2005 Businessweek chose to produce the following article on the fraudulent marketing products sold by Larry Klein.

http://www.businessweek.com/magazine/content/05_06/b3919132_mz070.htm

3) On page 65 of the 2006 Kipplingers Retirement Guide please review the article titled “Beware the FLIMFLAM MAN” describing the CRFA “Professional Designation” listed above and discussing regulatory actions being taken against NASD member firms.

4) If a registered representative at your firm is using the CRFA designation or NF Communications marketing material it may be useful to request they submit not only the portion of the marketing system addressed by old NASD review letters dated 2001-2005 (the NASD stopped reviewing NF products in early 2006) but also the remaining portion of the system not addressed by the NASD to ascertain its compliance with http://www.nasd.com/RulesRegulation/NoticestoMembers/2006NoticestoMembers/NASDW_017265 which took effect December 1, 2006.