State files "administrative action" against Morgan Keegan - - Jackson, MS

State files "administrative action" against Morgan Keegan

Posted: Updated:

By Ashley Conroy

JACKSON, MS (WLBT) - Mississippi, Alabama, Kentucky, and South Carolina have joined to forces in filing a joint "administrative action" against Morgan Keegan, the investment firm based in Memphis with branches across Mississippi.

The Secretary of State Delbert Hosemann made the announcement on Wednesday along with the Alabama Securities Commission, the Securities and Exchange Commission, and the Financial Industry Regulatory Authority, that are also filing their own administrative suit.

"We will be seeking not only the administrative penalties, but we'll also be seeking restitution for some of the losses," said Secretary of State Delbert Hosemann.

They allege 13,000 investors have been affected across thirteen states, that Morgan Keegan withheld information from clients, misrepresented marketing materials to investors, and gave preferential treatment to certain clients all resulting in the mishandling's and loss of $2 billion dollars.

Secretary Hosemann estimates about $30 million dollars in losses in Mississippi and that 2,000 investors in the state have been affected.

"There are consequences to misleading the public when it comes to their money," Hosemann said.

In the meantime, Morgan Keegan said on Wednesday these allegations are not true, and they will continue to refute any claims.

The Secretary of State's office says if Mississippi investors would like to report a claim against Morgan Keegan they can call their office at (601) 359 -1350, or link to their web site at:

©2010 WLBT. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Powered by WorldNow