Morgan Keegan To Face Regulators On Oct. 5
Broker/dealer Morgan Keegan has been granted an administration hearing over allegations that the company cost investors more than $2 billion because of fraudulent and reckless business practices.
The hearing will take place Oct. 5 in Montgomery, Ala., at the offices of the Alabama Securities Commission.
The Securities Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA) and four states have charged Morgan Keegan with fraud and reckless business practices, accusing the company and several employees of overstating the value of several bond funds backed by risky mortgages and using false and misleading sales materials.
The two Morgan Keegan employees who are named in the charges by regulators are James Kelsoe and Joseph Weller. Weller heads Morgan Keegan’s accounting department.
The regulatory charges facing Morgan Keegan are in addition to hundreds of arbitration claims that have been filed by investors.
Our affiliation of securities 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.
