States reach $200M settlement with Morgan Keegan
by Associated Press
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.
Twang & Tourism: The Country Music Trail
Still planning that summer vacation?
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Prescription for success — Transcript Pharmacy continues fast growth
- Panther Creek megasite — Putting a value proposition out there
- BBB issues warning involving asphalt paving scam
- Study: Mississippi has highest sales tax rate in U.S.
- Mississippi State makes NSF ranking of research universities
- Panther Creek's location in medical industry zone boosts bio-med prospects
- Chris McDaniel responds to radio show audio clip
- TVA president/CEO Johnson tours Techumseh, Yokohama plants
- Sawtimber, pulpwood markets improving, but challenges remain
- News The Way You Want It!