Morgan Keegan Victims Say SEC Failed To Hand Over $100M

Law360, New York (July 26, 2013, 6:37 PM EDT) -- Customers of Morgan Keegan & Co. Inc. on Thursday hit the U.S. Securities Exchange Commission with a suit in Mississippi federal court accusing the regulator of arbitrarily delaying distribution of $100 million of a 2011 settlement involving mortgage-backed securities fraud, alleging that investors have suffered from flaws in the SEC's Fair Fund system.

Repeated delays in divvying $100 million — half of the settlement — among victims of Morgan Keegan's alleged scheme to inflate the value of the mortgage-backed securities is indicative of long-standing maladies in...
To view the full article, register now.