Skip to Main Content

Securities Division Reminds Residents of Filing Deadline in Morgan Keegan Case

Friday, June 01, 2012 | 09:41am

NASHVILLE- Commerce and Insurance’s Securities Division is reminding Tennesseans participating in the settlement involving Morgan Keegan proprietary bonds that they have only until June 16, 2012, to file a claim.

Most Tennesseans participating already have received notification from the state fund administrator, although the possibility exists of a secondary tier of customers who bought the funds in question from brokers not employed by Morgan Keegan. Follow-up mailings from the state, as well as from A.B. Data, are under way to notify as many potential customers as possible. Responses must be postmarked by June 16, in order to be eligible to file a claim with the States’ Fund. Late filings will not be accepted.

If Tennesseans have any questions about how to file a claim, about the claim form or about any other claim-related issue, they should contact:

A.B. Data Ltd.

P.O. Box 170500

Milwaukee, WI  53217-8091

1-888-208-9083

 

Claim forms should be mailed to:

Morgan Keegan Settlement Fund Administrator

c/o A.B. Data Ltd.

P.O. Box 170500

Milwaukee, WI  53217-8091

The above referenced deadline applies only to the States’ Fund. The Securities and Exchange Commission (SEC) has determined to have separate deadlines for filing a claim with the SEC’s Fair Fund. The SEC deadlines will be communicated by the SEC at a later date.

The settlement was a direct result of intensive multi-state, federal, and self-regulatory organization (SRO) investigations. The states’ task force was led by Alabama, Kentucky, Mississippi, South Carolina and Tennessee in cooperation with state securities regulators from Arkansas, Florida, Georgia, Illinois, Louisiana, Missouri, North Carolina, and Texas.

The investigation centered around seven proprietary mutual funds sold by Morgan Keegan broker dealers to more than 30,000 account holders. Those seven mutual funds lost approximately $1.5 billion from March 31, 2007, to March 31, 2008. The states’ joint administrative actions against Morgan Keegan, Morgan Asset Management and certain employees, concluded that the firms:

  • made material omissions and misrepresentations in marketing material and regulatory filings;
  • failed to make suitable recommendations concerning purchases and concentration of the funds in customer accounts;
  • failed to adequately supervise their agents and employees;
  • and failed to perform sufficient due diligence reviews of the funds.

 Tennessee’s consent order in this case can be found at http://1.usa.gov/qI9NzR.

The Securities Division (www.tn.gov/commerce/securities) is part of the Department of Commerce and Insurance, which works to protect consumers while ensuring fair competition for industries and professionals who do business in Tennessee. www.tn.gov/commerce/, @TNCommerceInsur (Twitter), http://on.fb.me/uFQwUZ (Facebook), http://bit.ly/ry1GyX (YouTube)

Commerce & Insurance | Press Releases