Regions Financial Corp.'s Morgan Keegan Hit With $200 Million Dollar Fine by Regulators, Says Sonn & Erez, PLC -- RF
June 22 2011 - 4:13PM
Region Financial Corp.'s (NYSE:RF) subsidiaries, Morgan Keegan
& Company and Morgan Asset Management, was hit with a $200
Million Dollar penalty, interest and disgorgement today over fraud
allegations brought by the SEC, state regulators, and the Financial
Industry Regulatory Authority (FINRA) relating to the sale of
proprietary Regions Morgan Keegan (RMK) Bond Funds, says Sonn &
Erez PLC, a law firm representing many Morgan Keegan bond fund
investors. Over 30,000 investors are estimated to have lost over
$1.5 Billion in the seven RMK branded bond funds. State regulators
from Alabama, Mississippi, Kentucky and South Carolina charged that
Morgan Keegan, its sister company Morgan Asset Management, and
certain employees violated the state securities' laws by making
misrepresentations and failing to disclose the true risks of the
RMK bond funds to investors. At the same time, the SEC charged that
Morgan Keegan and Morgan Asset Management violated federal
securities laws by misvaluing and misrepresenting the true value of
the holdings of six RMK bond funds to investors during 2007.
Moreover, FINRA, the financial industry's self-regulatory
organization, charged that Morgan Keegan and others violated FINRA
regulations. Jeffrey Sonn, Esq., an attorney for many Morgan Keegan
investors, said, "This $200 million dollar penalty supports
allegations by our clients that Morgan Keegan misled their clients
that their RMK funds were safe bond funds when in fact they were
dangerous funds that heavily invested in toxic waste assets." Sonn
& Erez PLC has prevailed in many arbitration cases for RMK
investors, including two arbitration verdicts that were each over
$1 million dollars. "There is still time for investors to bring
arbitration cases to recover their losses," added Sonn.
The Morgan Keegan bond funds that are the subject of hundreds of
investor arbitrations include the following: Regions Morgan Keegan
Select High Income, RMK High Income Fund, RMK Strategic Income
Fund, Regions Morgan Keegan Select Intermediate Bond Fund, RMK
Multi-Sector High Income and RMK Advantage Income (later rebranded
under the "Helios" brand of funds).
Sonn & Erez, PLC is representing numerous Morgan Keegan bond
fund investors. Investors seeking more information may contact
Jeffrey Sonn or Jeffrey Erez at Sonn and Erez PLC.
CONTACT: Jeffrey Sonn, Esq.
Sonn & Erez PLC
500 East Broward Blvd.
Suite 1700
Fort Lauderdale, FL 33394
954-763-4700
www.sonnerez.com
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