Morgan Keegan Ordered by FINRA to Pay Investors $267,711 Plus Interest for Losses in RMK Bond Funds

Separate Financial Industry Regulatory Authority arbitration panels have issued awards to investors who suffered financial losses in Regions Morgan Keegan mutual funds. Last week, a FINRA panel awarded two California residents $267,711 plus interest for their losses-the largest bund fund arbitration award that Morgan Keegan has been ordered to pay to date.

In two arbitration cases last month, investors were also awarded six-figure sums, with one award amount larger than the damages claimed by investors. To date, FINRA panels have awarded over $871,000 to investors for their Morgan Keegan-related claims.

All of the arbitration claims accuse Morgan Keegan of concealing the actual risks associated with their bond funds. The investors have accused Morgan Keegan of selling certain funds as relatively conservative investments when they were actually exposed to a number of high risk debt instruments, including collateral debt obligations and subprime mortgage securities. They say Morgan Keegan engaged in a scheme to defraud investors of certain bond funds and misrepresented the extent of their holdings in riskier investments.

Morgan Keegan investors sustained substantial financial losses after the subprime mortgage market declined. RMK funds named in the allegations against Morgan Keegan, include:

RMK Select Intermediate Bond Fund RMK Strategic Income Fund RMK Advantage Income Fund RMK High Income Fund RMK Select High Income Fund RMK Multi-Sector High Income Fund
Stockbroker fraud law firm Shepherd Smith Edwards & Kantas LTD LLP is investigating claims by investors who say they sustained financial losses with Morgan Keegan, and our securities fraud attorneys are filing investment fraud claims on their behalf.

Related Web Resources:
The Law Firm of Shepherd Smith Edwards & Kantas Continues to File Cases Against Morgan Keegan Bond Fund Investments in Light of Recent Arbitration Awards — RSF, RMA, RHY, RMH, RHICX, MKHIX, RHIIX, RIBCX, MKIBX, RIBIX, Globe Newswire, April 2, 2009
Morgan Keegan must pay investor $267,000, regulator says, Birmingham News, April 2, 2009
Arbitration and Mediation, FINRA