Friday, April 16, 2010

FINRA Press Release: Morgan Keegan

April 7, 2010 – FINRA Files Complaint Against Morgan Keegan & Company for Misleading Customers Regarding Risks of Bond Funds and Advertising, Other Violations

The Financial Industry Regulatory Authority (FINRA) issued a press release today announcing that
“ it has filed a complaint against Morgan Keegan & Company, Inc., charging the firm with marketing and selling seven affiliated bond funds to investors using false and misleading sales materials – costing investors well over $1 billion. In addition to an unspecified fine, FINRA is seeking disgorgement of all ill-gotten profits and full restitution for affected investors.”
The statement of complaint is found here. FINRA alleges that Morgan Keegan brokers made material misrepresentations to investors concerning the bond funds. Further, it alleges that Morgan Keegan failed to train its brokers to understand the risks of the bond funds and it provided sales materials containing misleading statements about the bond funds, which led to material misrepresentations.

Dr. Craig McCann, founder of SLCG, was hired to testify in multiple arbitration panels in claims against Morgan Keegan. The results of such arbitrations can be found here in our dedicated website.

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