Morgan Keegan Hit With SEC, FINRA Fraud Claims

Law360, New York (April 7, 2010, 3:23 PM EDT) -- Morgan Keegan & Co. Inc. is facing administrative proceedings brought Wednesday by both the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority claiming that the investment firm overstated the value of bond funds heavily invested in subprime mortgage-backed securities.

According to the SEC, Morgan Keegan and two of its senior employees regularly fixed daily quotes in order to boost the net asset values of five separate bond funds, in several cases ignoring lower values for the mortgage-backed securities as reported by broker-dealers involved...
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