Morgan Keegan /RMK Funds

Morgan Keegan must repay the financial losses of fourteen RMK investors, attorneys’ fees and the costs of the proceeding, according to the January 30, 2012 Order of an arbitration panel of the Financial Industry Regulatory Authority (FINRA) which heard the case in Birmingham, Alabama. The Claimants are fourteen out of thousands of investors who lost money as a result of Morgan Keegan’s fraudulent conduct in connection with the RMK (Regions Morgan Keegan) family of bond funds.  The Claimants were represented by Attorney Howard Prossnitz, of Chicago, IL and Richard Frankowski, of The Frankowski Firm in Birmingham, AL. One of the funds at issue in the case, the RMK Select Intermediate Bond Fund, is the subject of a now infamous “smoking gun” May 2007 e-mail from Gary Stringer, investment director of Morgan Keegan’s Wealth Management division, who stated: “Mr. & Mrs. Jones don’t expect that kind of risk from their bond fund. . . . I’d bet that most of the people who hold [...]

Morgan Keegan & Co., Inc. will pay $200 million to resolve regulatory allegations against it as a result of its actions and omissions relating to the RMK family of bond mutual funds.  The money will be paid into funds to be administered by A.B. Data, Ltd., of Milwaukee, WI. A.B. Data has not yet sent out any claims forms to RMK investors, but should do so in the near future.  The A.B. Data website has a link to Frequently Asked Questions related to the administration and distribution of the Morgan Keegan regulatory money. […]

According to this news release, Morgan Keegan was ordered by a Financial Industry Regulatory Authority (FINRA) arbitration panel to repay a Georgia charity 115% of its losses in the speculative RMK family of bond funds.  The panel determined that Morgan Keegan wrongfully sold the risky funds to the charity and placed too high a percentage of the charity’s investments in the funds.  Notably, the panel also admitted the Georgia Securities Department’s Findings of Fact against Morgan Keegan and compelled the testimony of Gary Stringer (Morgan Keegan Director of Investments) and Michele Wood (RMK Fund compliance officer) to testify over Morgan Keegan’s objections. The law firm of The Frankowski Firm has filed numerous complaints on behalf of investors in the same family of funds and has obtained numerous awards for their clients against Morgan Keegan. […]

Morgan Keegan must repay the financial losses of an elderly RMK investor, plus interest, attorneys’ fees and punitive damages, according to the January 9, 2012 Order of an arbitrator with the Financial Industry Regulatory Authority (FINRA). The combined award of out-of-pocket losses plus punitive damages represents the maximum amount available to a claimant in a “simplified” (paperwork-only) arbitration award. The Claimant was one of thousands of investors who lost money as a result of Morgan Keegan’s fraudulent conduct in connection with the RMK (Regions Morgan Keegan) family of bond funds. One of the funds at issue in the case, the RMK Select Intermediate Bond Fund, is the subject of a now infamous “smoking gun” May 2007 e-mail from Gary Stringer, investment director of Morgan Keegan’s Wealth Management division, who stated: “Mr. & Mrs. Jones don’t expect that kind of risk from their bond fund. . . . I’d bet that most of the people who hold that fund have no idea what’s it’s actually [...]