Morgan Keegan Hammered for $1,845,318
It seems to just keep getting worse for the beleaguered subsidiary of Regions Financial Services (RFS). On November 19, 2010, a Financial Industry Regulatory Authority (FINRA) arbitration panel in Boca Raton, FL ruled that Morgan Keegan & Company, Inc. was liable for misrepresentations and omissions, breach of fiduciary duty, unsuitable investments, negligence and failure to supervise, among other things with regard to the following funds: RMK Select High Income Class A Fund, RMK Advantage Income Fund, RMK Multi-Sector High Income Fund, RMK Select High Income Fund Class C Fund and the RMK Select High Income Class C Fund. (FINRA# 08-02589; Frank L. Flautt, Jr., Revocable Trust Agreement, dtd 12/5/02, Frank L. Flautt TTEE; Frank L. Flautt, Jr., Rollover IRA; Flautt Family Foundation and Brenda C Flautt v. Morgan Keegan & Company, Inc.)
The Claimant in the case, Frank Flautt, was a protégé of founder of Holiday Inns. He owns and manages the Hilton Sandestin Beach Golf Resort & Spa in Destin, FL. He and his wife, Brenda, had requested compensatory damages of $1.25 million. The panel awarded $1,509,594 to Frank Flautt, $69,124 to the Flautt Family Foundation and $246,799 to Brenda Flautt, including interest on the amounts from 2008 to 2010. The panel further ordered Morgan Keegan to pay the Claimants $600 for the non-refundable portion of their filing fee and $19,200 in forum fees for the arbitration.
Morgan Keegan stated they were disappointed with the decision and will considering an appeal.
If you have suffered losses in any Morgan Keegan funds, please contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.