Snell &.\Øilmer DENVER

LAS VEGAS

LOS ANGELES

LOS CABOS

ORANGE COLINTY

PHOENIX

RENO

SALT LAKE CITY

TUCSON

L.L.PLAW OFFICES

One Arizona Center400 East Van Buren Srreet

Suite 1900

Phoenix, Arizona 85004 -2202

602.382.6000602.382.6070 (Fax)

www.swlaw.com

Brett W. Johnson(602 382-6312

bwjohnson@swlaw.com

July 24,2014

Station ManagerAM78O KAZ}'4Tabback Broadcasting Co., Inc.P.O. Box 4259Sedona, Arizona 86340

Advertisements:Request X'or Review and Removal From Broadcast Schedule

Dear Station Manager:

This law firm represents Jeff DeWit, candidate for Arizona Treasurer, and his politicalcommittee Friends of Jeff DeWit - Primary. We understand that Hugh Hallman, another

candidate for Arizona Treasurer, and his political committee, Elect Hugh Hallman State

Treasurer 2014, are attempting to purchase time on your station for false, negativeadvertisements. Before you air them, we must notify you that certain factual assertions

contained in the advertisements are materially false, misleading, and damaging. We request thatyou take a hard look at the content prior to deciding whether to air the material.

Specifically, Mr. Hallman has paid for air time for an ad entitled "risky business." In the

ad, Mr. Hallman claims that Mr. DeWit ran a "risky day-trading website" and "made moneyeven when his customers lost it." Mr. Hallman's statement is categorically false, misleading, and

completely fails to accurately explain how proprietary trading companies, rather than retailtrading companies, operate. Mr. Hallman's ad explains a retail trading company, similar to E-

Trade or Scottrade, that have private individuals who trade on their own personal accounts. The

private individual then will pay a "fee" related to each trade.

On the other hand, Mr. DeWit was the CEO of a proprietary trading company that ismade up of professional traders who are fully licensed investment professionals, approved byand a member of at least one of the major stock exchanges, and verified through extensive

background checks by the federal government. They are not customers, and in fact all SEC

registered proprietary trading companies such as Mr. DeWit's are prohibited from having

customers or taking customer money. Rather than trading with personal private funds, as Mr.

Hallman's ad infers, the professional traders all trade firm capital. As a candidate for Treasurer,

Snell & Wilmer ¡s a member of LEX MUNDI, The Lead¡ng Assoc¡at¡on of lndependent Law Firms

Snell ôr\ØilmerL.L.P

Iuly 24,2014Page2

Mr. Hallman should be aware of these significant distinctions as he desires to be the steward ofthe State of Arizona's investment trading.

As you know, your station's obligation to serve the public interest requires you to declineto air false and misleading advertising and, unlike an advertisement aired by a candidate, there ispotential liability for the station in distributing defamatory messages. The falsehoods andmisrepresentations, which are described in detail below, warrant that your station immediatelydecline to air the advertisements and/or remove the advertisement from the air.

If, after you review the advertisement, you determine that the advertisementcontains at least one faße statement of fact, that one false statement is enough to remove itin its entirety. As we describe below, the advertisement actually contains at least two categoriesof false statements of fact.

First, the ad falsely implicates that Mr, DeV/it operated a"day trading website." This isincorrect. As referenced above, Mr. De'Wit was the CEO of a company comprised ofprofessional, sophisticated, and licensed securities traders. No trades were ever conductedthrough a website. A private individual who meets the definition of a non-licensed and possiblyunsophi stic ated " day trader" would not qualify.

Second, the ad falsely implicates that Mr. DeV/it made money when his customers "lostit." Again, Mr. DeWit's company operated from a firm capital account. If one of theprofessional traders suffered a setback on a trade, the company suffered the setback. It isimpossible for a customer to have lost money while the company profited since there were nocustomers of the firm ever.

Mr. Hallman has severely manipulated, falsified, and distorted or otherwise ignored the

actual stellar record of Mr. DeWit and his company. There can be no other reasonable

explanation than by his actions demonstrated above, Mr. Hallman knew that his statements are

false, or, alternatively,that Mr. Hallman acted in reckless disregard of their truth or falsity.

Because your station is responsible for the airing of any advertisement known to you tobe false, we respectfully urge you to remove this advertisement from your broadcast schedule

immediately and further request that you reject any attempts by Mr. Hallman to purchase timefor the future airing of this advertisement because if its material misstatements of fact and

misleading nature. Accordingly, you are hereby put on notice that the advertisement is false and

misleading.

Snell &.\ØilmerL.L,P

JuIy 24,2014Page 3

Please contact me at your earliest convenience at (602) 382-6312, or by email at

bwjohnson@swlaw.com, to advise us as to whether your station will be airing thisadvertisement.

Very truly yours,

Snell & Wilmer r.L.p

bBrett W. Johnson

BWJ:lmf19788568