States reach $200M settlement with Morgan Keegan
Published: June 22,2011
Five states, including Mississippi, and federal regulators have reached a $200-million settlement with Morgan Keegan & Co. over allegations that its brokerage firm engaged in reckless business practices that led to an estimated $1.5 billion in losses to investors.
William Hicks of the U.S. Securities and Exchange Commission announced the deal today. State regulators from Alabama, Kentucky, Mississippi, South Carolina and Tennessee were involved in the settlement, as well as the Financial Industry Regulatory Authority.
The regulators say Morgan Keegan overstated the value of funds backed by subprime mortgages and used false and misleading sales materials.
James Kelsoe, who managed the funds targeted by regulators, agreed to pay $500,000 to settle claims. He is barred from the securities industry.
Morgan Keegan is owned by Birmingham, Ala.-based Regions Financial Corp.
To sign up for Mississippi Business Daily Updates, click here.
FOLLOW THE MBJ ON TWITTERMy Tweets
Twang & Tourism: The Country Music Trail
Top Posts & Pages
- Brandon man hauls in record 756-pound alligator
- McDaniel delays decision on whether to appeal dismissal of lawsuit
- FLIPPING OUT — Flipping houses is popular in much of the country, but in Mississippi ...
- More than a dozen school districts sue state over funding
- REVVING UP — Motorcars of Jackson is preparing to open its first-ever showroom on I-55
- Jackson to get C Spire's high-speed internet
- Is cotton looking too good? Farmers facing weaker prices
- New York firm buying majority interest in Tupelo mall, shopping center
- Bryant issues executive order to establish Delta water task force