Morgan Keegan To Face Regulators Over RMK Bond Losses
Troubled investment bank Morgan Keegan has been granted an administration hearing regarding legal issues tied to a group of RMK bond funds and allegations that the products cost investors more than $2 billion in losses because of Morgan Keegan’s fraudulent and reckless business practices.
The hearing will take place Oct. 5 in Montgomery, Ala., at the offices of the Alabama Securities Commission.
Several states, including Mississippi, Alabama, Kentucky and South Carolina, as well as the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) filed administrative actions on April 7 against Morgan Keegan. The focus of their actions concerns allegations that Morgan Keegan and several high-ranking employees overstated the value of funds backed by subprime mortgages and used false and misleading sales materials to tout the funds to investors.
The federal and state charges are in addition to hundreds of arbitration claims that have been filed by investors against Morgan Keegan over losses in the bond funds. Class-action lawsuits also have been leveled against the company.
Our affiliation of lawyers is actively involved in advising individual and institutional investors in evaluating their legal options when confronted with subprime and other mortgage-related investment losses.
