FINRA ENFORCEMENT: 25 Top Cases
The Financial Industry Regulatory Authority reviewed enforcement case trends at its annual conference in Washington, D.C. this week. Here are 25 top cases from its files.
Bond Funds:
Morgan Keegan. Case # 2007011164502. $200 million
FINRA, the SEC and 5 state regulators from Alabama, Kentucky, Mississippi, South Carolina and Tennessee announced that each had settled enforcement proceedings against Morgan Keegan & Company,
Inc. Morgan Keegan will pay restitution of $200 million for customers who invested in seven affiliated bond funds, including the Regions Morgan Keegan Select Intermediate Bond Fund (Intermediate Fund). Morgan Keegan's affiliate, Morgan Asset Management, managed the funds.
The cases involved marketing with exaggerated claims and selling of complex, structured products as safe investment-grade fixed income mutual funds, among other allegations.
