ATLANTA, Sept. 30, 2009 (GLOBE NEWSWIRE) -- The Law offices of Napoli Bern Ripka LLP has won yet another arbitration against the brokerage firm Morgan Keegan & Co., Inc. and the first arbitration victory against James C. Kelsoe -- Morgan Keegan's fund manager.
Morgan Keegan, a division of Regions Financial Group, is a Memphis, Tennessee based brokerage firm that sold mutual funds and other investments based on false information and misrepresentations concerning the safety of their funds. Morgan Keegan's bond funds were overcollateralized by underlying assets in risky securities.
The RMK Funds, which included RMK High Income Fund (formerly RMH, currently HIH), RMK Advantage Income Fund (formerly RMA, currently HAV), RMK Multi-Sector High Income Fund (formerly RHY, currently HMH), RMK Strategic Income Fund (formerly RSF, currently HSA), RMK Select High Income Fund (formerly MKHIX, currently HIFAX), and the RMK Select Intermediate Fund (formerly MKIBX, currently HSIBX), were marketed and recommended as safe investments providing investors with a consistent level of income. Despite these representations, the RMK Funds invested in mortgage-backed securities, many of which contained sub-prime mortgage loans and collateralized debt obligations. In six short months these funds dropped in value by over 70%. The risks associated with these securities resulted in substantial losses for investors in the RMK Funds. Unfortunately, Morgan Keegan did not properly or accurately inform RMK Fund investors of these risks.
The case was the first successful arbitration on behalf of an investor who did not directly purchase RMK Funds from Morgan Keegan. The Claimant, an elderly and unsophisticated investor, claimed that Morgan Keegan committed fraud in violation of the Securities Act of 1933. Claimant was awarded full damages, including interest, filing fees, forum fees and expert witness fees associated with this case.
Morgan Keegan has already lost a number of cases in 2009 and there are still hundreds, if not thousands, of arbitration claims currently pending against them that allege fraud, unsuitability, misrepresentation, and other claims. Napoli Bern Ripka LLP has successfully represented numerous investors who lost money as a result of wrongdoing by Morgan Keegan and its representatives.
The many recent arbitration victories bode well for investors who have not yet filed a claim. If you, or anybody you know has lost money as a result of investments in Morgan Keegan bond funds, please contact us at 888-529-4669.