Wednesday, June 22, 2011

…Another Fraudster About To Hit the Dirt: Feds to Announce $200 Million Settlement With Morgan Keegan

CommercialAppeal.com reports that Federal and state regulators are expected to announce a settlement Wednesday totaling roughly $200 million with Morgan Keegan & Co, a unit of Birmingham, Ala., regional bank Regions Financial Corp., according to a person familiar.

The SEC, financial regulators from Alabama, Kentucky, Mississippi, South Carolina and Tennessee, and the Financial Industry Regulatory Authority (FINRA) will hold a news conference at noon to discuss a settlement in a case involving misconduct related to the financial crisis.

The SEC filed a federal civil suit last year alleging Memphis-based Morgan Keegan, its mutual-fund manager James Kelsoe and others defrauded investors by inflating the value of risky subprime securities and selling them to clients without informing clients of the financial risks.

http://www.commercialappeal.com/news/2011/jun/22/settlement-expected-today-morgan-keegan-fraud-case/

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