According to an article in today’s The Bond Buyer financial publication, a Financial Industry Regulatory Authority (FINRA) arbitration panel ordered Memphis-based Morgan Keegan & Co. to pay a Birmingham investor $1.95 million for misrepresenting that the Jefferson County, Ala., sewer bonds he purchased were safe, liquid and tax-free investments. The bonds were actually auction-rate securities and the ARS market collapsed and froze during the late 2007-2008 financial crisis, leaving investors holding the securities they had purchased.
See the full article here:
This is just the latest in a series of arbitration awards and other setbacks which ultimately forced parent company Regions Financial to sell the brokerage arm to Raymond James Financial Inc.. Morgan Keegan was besieged with investor claims resulting from the marketing and sale of the now defunct RMK family of high yield bond funds.
The attorneys at Colling Gilbert Wright & Carter have litigated dozens of RMK and other high yield bond cases to a successful conclusion. If you have lost money as a result of the purchase of auction rate securities or bond fund, please contact our office for a free case evaluation. Thank you.