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The Securities Law Firm of KlaymanToskes announced today that the SEC and FINRA have charged Morgan Keegan in connection with the Regions Morgan Keegan (“RMK”) Bond Funds. Morgan Keegan is owned by Regions Financial Corp. (NYSE: RF). The SEC specifically alleged that Morgan Keegan perpetrated a “fraudulent scheme”, and “failed to employ reasonable procedures to price the Funds’ portfolio securities and, as a result of that failure, did not calculate accurate NAVs for the Funds.” The SEC goes on to state that “despite these failures, Morgan Keegan recklessly published daily NAVs of the Funds which it could not know were accurate and, as distributor of the Funds’ shares, sold shares to investors based on those NAVs.”
According to FINRA, Morgan Keegan “market[ed] and [sold the RMK Bond Funds] to investors using false and misleading sales materials – costing investors well over $1 billion.” FINRA’s Complaint alleges that “the misleading sales materials, combined with the firm’s misleading and deficient internal guidance and failure to train its brokers about the risks, led Morgan Keegan’s brokers to make material misrepresentations to investors.” FINRA further states that “Morgan Keegan failed to establish, maintain and enforce an adequate supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with the federal securities laws and FINRA rules.”
Presently, KlaymanToskes is prosecuting numerous arbitration claims against Morgan Keegan on behalf of investors of the RMK Bond Funds before FINRA Dispute Resolution. Retail and institutional investors who have sustained investment losses in the RMK Bond Funds can contact KlaymanToskes to explore their legal rights and options. If you wish to discuss this announcement or have investment losses of $100,000 or more in the RMK Bond Funds, please contact our law firm.