JACKSON, MS (Mississippi News Now) -
It was a massive win for the secretary of state's office last year when Morgan Keegan agreed to pay a $200 million settlement stemming from civil fraud charges for misleading investors. Half of that money is ready to be put back in the pockets of those investors.
"We're pleased to distribute it and we're always disturbed that we had to get here in the first place," said Secretary of State Delbert Hosemann.
Several states and federal regulators took action against the financial services company about three years ago, claiming they caused investors to lose more than $2 billion through fraudulent and reckless business practices.
"These products are only the bond funds and the high yield funds. None of their other products were involved in any questionable dealings with our office or part of this settlement," said Hosemann.
Hosemann says the company misled more than 2,000 Magnolia State investors, resulting in a state loss of about $70 million. Now, it's time to return the money. The problem is, more than half of the cheated investors haven't filed claims to get their money.
"No funds will revert to Morgan Keegan or the state of Mississippi, they'll all be paid to investors. You just have to have your name in the hat and if you don't it'll be paid to others that do," said Hosemann.
The losses in question are from 2007 and early 2008. If Mississippi investors don't claim their share, the money could end up in the hands of other investors from other states which were also part of the settlement.
"Please file your claim, so that you'll get your money. Don't let someone else get your money," said Hosemann.
The deadline to file is June 16th and with millions to be divided, Hosemann says his office is working closely with the public to make sure the money goes to the right people.
Application forms can be found on the secretary of state's web site at www.sos.ms.gov/MorganKeegan.
Investors can also contact the company handling the claims at 1-888-208-9083 or you can contact the secretary of state's office at 601-359-6742. No late claims will be accepted.
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