Last week, the Staff of the Atlanta Regional Office of the US Securities and Exchange Commission sent Morgan Keegan & Co, Inc., Morgan Asset Management, Inc., and three employees a “Wells” notice. The notice stated the Staff’s intention to recommend that the Commission bring enforcement actions over possible federal securities laws violations. Morgan Keegan, is a subsidiary of Regions Financial Corporation.
The Staff had been investigating a number of mutual funds that Morgan Asset Management had previously managed. In light of the Wells notice, the securities fraud law firm of Shepherd Smith Edwards & Kantas LTD LLP is continuing to file arbitration claims against Morgan Keegan for covering up the risks associated with their bond funds.
Our investor clients are accusing Morgan Keegan of selling specific funds that it promoted as relatively conservative investments when in fact, the funds were exposed to subprime mortgage securities, collateral debt obligations, and other high risk debt instruments. Investors are alleging that Morgan Keegan took part in a scam that defrauded investors of certain bond funds while misrepresenting their degree of involvement in more high risk investments. As a result, our investor clients suffered major financial losses after the subprime mortgage market collapsed.
The Allegations Against Morgan Keegan Name a Number of RMK Funds, including:
• RMK Multi-Sector High Income Fund • RMK Select High Income Fund • RMK High Income Fund • RMK Select Intermediate Bond Fund • RMK Advantage Income Fund • RMK Strategic Income Fund
**A Wells notice is not a formal charge or official finding of wrongdoing. It gives the recipients a chance to offer their accounts about the issues raised by the notice before the Commission takes any formal action.
Our securities fraud law firm is comprised of a team of experienced stockbroker fraud attorneys, consultants, and others. Over the years, we ‘ve taken our more than 100 years of combined experience in securities law and the securities industry to help thousands of investors recoup their losses.
Shepherd Smith Edwards & Kantas LTD LLP successfully represents clients in matters of arbitration, mediation, negotiation, and litigation. Our investor fraud cases have been heard in state and federal courts, as well as in arbitration before the Financial Industry Regulatory Authority, the American Arbitration Association, and the New York Stock Exchange.