JACKSON, MS (WLBT) - Thousands of customers who lost money on investments with Morgan Keegan could get some of it back.
Mississippi Secretary of State Delbert Hosemann announced Wednesday that his office has filed an administrative action against the firm after an intensive multi-state investigation.
Hosemann says Morgan Keegan did not tell investors everything they should have known about six mutual funds that lost $2 billion from March 31, 2007, to March 31, 2008. At least 13,000 investors are affected in Mississippi, Texas, Louisiana, Georgia, Florida, North Carolina, Tennessee, Arkansas, Illinois and Missouri.
Hosemann says he intends to seek restitution for the Mississippi investors.
The administrative action was filed against Morgan Keegan and four employees: James C. Kelsoe, Brian B. Sullivan, Gary Stringer and Michele Wood.
Hosemann was joined at Monday's announcement by representatives of the Securities and Exchange Commission, the Federal Regulatory Authority, and the Alabama Securities Commission.
Morgan Keegan says it is disappointed in the action and will vigorously refute the claims.
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