FORT LAUDERDALE, Fla., Aug. 27, 2012 (GLOBE NEWSWIRE) -- The nationally recognized securities law firm of Sonn | Erez announces that Morgan Keegan has been hit with an award of $232,735 inclusive of punitive damages as well as the entitlement to attorneys' fees, in a FINRA arbitration case, Antietam Industries, Inc., William Warfel and Janice Warfel v. Morgan Keegan & Co., Inc. Case no. 11‑00726. The award is significant due to the fact that the panel awarded punitive damages as well as the right to collect attorney fees. The case centered around allegation that the investments made by the Warfels in the RMK High Income Fund, RMK Strategic Income Fund, RMK Advantage Income Fund, and the RMK Multi-Sector High Income Fund were done under fraudulent conditions in which Morgan Keegan according to the panel "was guilty of intentional misconduct or gross negligence in its communication to its broker and the Claimants of the true nature of the RMK investments, the risks associated therewith and its failure to supervise the Claimants' accounts." This led the panel to issue an award of $100,000 for punitive damages. This is the latest in a long string of victories for Sonn | Erez in which they have been able to recover millions of dollars for clients who invested in Morgan Keegan-branded RMK Funds.
This is the latest in a continued effort by Sonn | Erez to recover funds for our clients. In the last few years we have been able to recover $523,000 for an Atlanta resident, $1.1 million for a WWII veteran, $285,000 for a Vietnam veteran, $1.08 million for a Ft. Lauderdale family, $213,000, plus attorneys' fees for a pension plan and $430,000 for a retired banker. These are some of the many recoveries we have been able to achieve for our clients, relating to investments in the RMK Funds manage by James Kelsoe.
"The award is unusual in that FINRA arbitration panels rarely award punitive damages. We are pleased that this panel had the courage to correctly apply the law to the facts and award punitive damages based on Morgan Keegan's egregious conduct in regards to the RMK Funds," says Jeffrey Erez, Esq, lead counsel for the Warfels.
Sonn | Erez has already filed a petition to confirm the award with the Federal Court for the Middle District of Florida.
There are at least 28,000 investors in the RMK funds, and it is expected that many more will file claims to recover their losses.
If you have invested in the RMK funds, please contact one of the attorneys at Sonn | Erez to explore you legal options. Sonn | Erez is a nationally recognized securities firm representing individual and institutional investors who are victims of securities fraud, Ponzi schemes, and financial adviser negligence. For more information, please contact Jeffrey Sonn or Jeffrey Erez at 1‑866‑372‑8311.
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