Results 1 to 1 of 1
Thread Information
Users Browsing this Thread
There are currently 1 users browsing this thread. (0 members and 1 guests)
-
06-22-2011, 05:02 PM #1
Morgan Keegan paying $200 MILLION to settle fraud charges
Morgan Keegan paying $200M to settle fraud charges
Updated 1h 6m ago |
WASHINGTON (AP) — Morgan Keegan is paying $200 million to settle civil fraud charges that it overstated the value of mortgage investments just as the housing market was collapsing and lured buyers of its funds with false sales materials.
Federal and state regulators said the Memphis-based investment firm failed to use "reasonable" procedures to calculate the value of the mortgage investments in the funds. Half of the money will go toward compensating investors in five states.
The Securities and Exchange Commission, regulators in the five states and securities industry regulators, announced the settlement Wednesday. Two former employees of the firm also agreed to pay civil penalties.
It was the latest legal action by regulators in connection with the mortgage meltdown and financial crisis. On Tuesday, Wall Street bank JPMorgan Chase agreed to pay $153.6 million to settle the SEC's civil fraud charges that it misled buyers of complex mortgage investments just as the housing market was collapsing. Regulators have been investigating a number of major banks' actions ahead of the financial crisis that plunged the country into the most severe recession since the 1930s. More charges are expected.
Morgan Keegan is a subsidiary of Regions Financial Corporation. Regions announced Wednesday that it hired Goldman Sachs to explore a possible sale of the investment firm.
Of the $200 million that Morgan Keegan agreed to pay, a $75 million penalty and $25 million in restitution was levied by the SEC. The remaining $100 million will go to a state fund for Alabama, Kentucky, Mississippi, South Carolina and Tennessee, with the money to be distributed to investors who were harmed.
In addition, Morgan Keegan agreed not to make valuations of securities for investment funds for three years.
"The falsification of fund values misrepresented critical information exactly when investors needed it most - when the subprime mortgage meltdown was impacting the funds," SEC Enforcement Director Robert Khuzami said in a statement. "Such misconduct does grievous harm to investors."
http://www.usatoday.com/money/economy/h ... ment_n.htmNO AMNESTY
Don't reward the criminal actions of millions of illegal aliens by giving them citizenship.
Sign in and post comments here.
Please support our fight against illegal immigration by joining ALIPAC's email alerts here https://eepurl.com/cktGTn
Illegal Alien Accused of Sexually Assaulting 11-Year-Old Girl...
05-06-2024, 06:45 PM in illegal immigration News Stories & Reports