Morgan Keegan Fails in Attempt to Muddy the Water
Morgan Keegan’s attempt to muddy the water and divert attention away from them has failed. They had attempted to make a mountain out of a mole hill about an accidental release of client information to the Alabama Securities Commission by a Birmingham attorney. An internal investigation revealed that there was no wrongdoing done or harm done on the part of the lawyer who received confidential data on some Morgan Keegan customers. The issue raised by Morgan Keegan was a feeble attempt to cast doubt about the handling of the fraud investigation against them and their toxic RMK funds. The funds involved include the Select Intermediate Bond Fund; Select High Income Fund; RMK High Income Fund; RMK Strategic Income Fund; RMK Advantage Income Fund; and the RMK Multi-Sector High Income Fund. Although depicted as being different, the performance of each fund was essentially the same, producing massive losses for investors who had been told the funds were safe.
Based upon this finding, the Alabama Securities Commission can resume its investigation against Morgan Keegan, which will determine whether or not they will be barred selling securities.