(Source: PrimeNewswire)
MEMPHIS, Tenn., July 16, 2009 (GLOBE NEWSWIRE) -- Recently, the Atlanta Regional Office of the United States Securities and Exchange Commission ("S.E.C.") served a "Wells" notice on Morgan Keegan & Company, Inc. ("Morgan Keegan"), a wholly-owned subsidiary of Regions Financial Corporation (NYSE:RF), Morgan Asset Management, Inc. and three employees, stating that the S.E.C. intends to recommend enforcement actions for possible violations of the federal securities laws. These potential actions relate to investigations into certain mutual funds formerly managed by Morgan Asset Management, Inc.
A Wells notice, though neither a formal allegation nor a finding of wrongdoing, does place the recipient on notice and provides them the opportunity to address the issues raised by the S.E.C. prior to any formal action being taken.
The arbitration claims filed by Shepherd Smith Edwards & Kantas (www.sseklaw.com) accuse Morgan Keegan of concealing the actual risks associated with their bond funds. Specifically, the claims each allege Morgan Keegan engaged in a scheme to defraud investors in its RMK funds and misrepresented the extent of the funds' holdings in riskier investments, including collateral debt obligations and subprime mortgage securities.
Morgan Keegan investors sustained substantial financial losses after the subprime mortgage market declined. RMK funds named in the allegations against Morgan Keegan, include:
RMK Select Intermediate Bond Fund RMK Strategic Income Fund RMK Advantage Income Fund RMK High Income Fund RMK Select High Income Fund RMK Multi-Sector High Income Fund
Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and others with more than 100 years of combined experience in the securities industry and in securities law. Since 1990, we have represented thousands of investors nationwide to recover losses. We have represented clients in Federal and state courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions. Collectively, we have represented clients in more than 1,000 matters in negotiation, mediation, arbitration and litigation.
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CONTACT: Shepherd Smith Edwards & Kantas Samuel Edwards 800-259-9010 sedwards@sseklaw.com
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