Memphis, Tennessee based brokerage firm Morgan Keegan & Co. agreed to pay 10 pension plans more than $600,000.00 after federal officials claimed the investment firm illegally directed pension money into a group of preferred hedge funds in return for referral fees. The U.S. Department of Labor announced the agreement on April 29, 2012 but did not disclose the pension funds involved. Morgan Keegan recommended the pension plans invest in hedge funds that in turn paid Morgan Keegan for bringing in business between 2001 and 2008, federal officials said. The pension fund case is not part of the $210 million settlement reached last June with the U.S. Securities and Exchange Commission (SEC) after the 2008 collapse of the firms RMK family of high-yield bond funds. In that complaint, the SEC alleged fraud in the marketing and sale of the bond funds to their clients. The SEC released an Order Finding Facts and imposed sanctions. Morgan Keegan paid the fine while admitting no wrong doing. Morgan Keegan still faces dozens of arbitration cases filed on behalf of RMK mutual fund investors.
Morgan Keegan to Settle Labor Department Complaint
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