SEC finally releases Morgan Keegan settlement plan
by MBJ Staff
Published: April 23,2013
JACKSON — After repeated requests, the Securities and Exchange Commission has finally announced the proposed plan to distribute Morgan Keegan settlement funds to Mississippi investors, according to the Office of Secretary of State.
“For two years, the SEC ignored the pleas of investors to release this money. They desperately need their settlement funds,” says Secretary Delbert Hosemann. “It is beyond time for the federal agency to allocate the funds and bring some closure to Morgan Keegan investors.”
In June 2011, Mississippi, other states and the SEC reached a settlement agreement with Morgan Keegan and Morgan Asset Management in the amount of $200 million. The settlement payments are for failing to disclose risks associated with certain investments and presenting misleading marketing materials to investors.
As part of the settlement agreement, $100 million has already been distributed to investors by the states. The other $100 million was to be distributed by the SEC. The Office of Secretary of State reports it made repeated demands for payment of these funds and requested the ctate’s congressional delegation made demands, which they did. Finally, three investors filed a lawsuit against the SEC to demand payment and the attorney general demanded action and gave the SEC 14 days to respond.
“By their own administrative rule, the SEC is required to have a distribution plan in place within 60 days of the commission receiving funds. It has been two years. We have thousands of Mississippians who have lost millions of dollars. It is unconscionable it took this long to get Mississippians their own money from their own government,” adds Hosemann.
To sign up for Mississippi Business Daily Updates, click here.
2 Responses to “SEC finally releases Morgan Keegan settlement plan”
FOLLOW THE MBJ ON TWITTERMy Tweets
Top Posts & Pages
- Peavey's wellness program honored after workers drop 1,000 pounds
- Group, lesbian couples look to overturn state's ban on same-sex marriages
- Pickering lists concerns over Mississippi Adequate Education Program formula
- Mississippi Film Studios signs contract with New Orleans company
- Watkins says JRA out to block him from Farish by repaying HUD $1.5M
- Mars Food expanding Delta plant; investing $31M and adding jobs
- State renews battle over water use with city of Memphis
- DAVID DALLAS: You say “Obama”, I say “Ebola”
- Biloxi baseball project still alive but may be held for 2015