Administrative hearings underway for Morgan Keegan employees - MSNewsNow.com - Jackson, MS

Administrative hearings underway for Morgan Keegan employees

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JACKSON, MS (Mississippi News Now) -

Three employees of Morgan Keegan & Company and Morgan Asset Management are now the center of an administrative hearing after Mississippi's Secretary of State's Office claimed they played a role in misleading investors and financial advisers across the state; and in doing so, violated the Mississippi Securities Act.

Brian Sullivan, Gary Stringer, and Michelle Wood were part of a civil lawsuit against Morgan Keegan brought on by Secretary of State Delbert Hosemann.

Five states and federal regulators took action against the company claiming they caused investors to lose more than $2 billion through fraudulent and reckless business practices.

State leaders say the company misled more than 2,000 Mississippi investors, resulting in a loss of about $71 million in mutual funds.

The company recently settled, agreeing to pay $200 million in civil fraud charges which Hosemann announced back in June.

All three individuals are testifying before a hearing officer in their alleged involvement.

Once the hearings are done; a recommendation will be given to the secretary of state's office, which can accept, modify or reject it.

All three potentially face civil penalties and loosing their license to operate in the state.

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