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Regions Financial Corp.'s Morgan Keegan Unit Hit with Large Arbitration Award
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(April 30, 2009 - Thursday) - Birmingham, Alabama - A Birmingham, Alabama Financial Industry Regulatory Authority (FINRA) arbitration panel awarded $84,000 to two widows from Birmingham, Alabama for losses suffered in Morgan Keegan bond funds on April 23, 2009.
"Once again Morgan Keegan was forced to compensate the customer for its sale of bond funds that cost investors over $2 Billion," said attorney Debra Brewer Hayes of The Hayes Law Firm, P.C. in Houston, TX, who represented the investors Shari Ackerman and Ferrell Bush. "These ladies came to Morgan Keegan after being recently widowed. They were very vulnerable and needed income from their investments. Morgan Keegan put its interest ahead of their customers. The arbitration Panel ordered Morgan Keegan to pay back the money they lost, with interest."
"This arbitration award affirms our view that Morgan Keegan engaged in a massive scheme to defraud many investors, including Mrs. Ackerman and Mrs. Bush, in the sale of its bond funds," says Hayes.
Craig McCann, who testified as an expert on behalf of Mrs. Ackerman and Mrs. Bush at the arbitration hearing, has been retained by the Securities and Exchange Commission and southern state securities regulators to analyze the nature and scope of Morgan Keegan’s misconduct.
The Morgan Keegan bond funds that are reportedly the subject of hundreds of investor arbitrations include the following:
Regions Morgan Keegan Select High Income-A, (Sym: MKHIX)
Regions Morgan Keegan Select High Income-C, (Sym: RHICX)
Regions Morgan Keegan Select High Income-I, (Sym: RHIIX)
RMK High Income Fund, (Sym: RMH)
RMK Strategic Income Fund, (Sym: RSF)
Regions Morgan Keegan Select Intermediate Bond Fund-A, (Sym: MKIBX)
Regions Morgan Keegan Select Intermediate Bond Fund-C, (Sym: RIBCX)
Regions Morgan Keegan Select Intermediate Bond Fund-I, (Sym: RIBIX)
RMK Multi-Sector High Income, (Sym: RHY)
RMK Advantage Income, (Sym: RMA)
The Hayes Law, P.C. has joined an association of law firms in pursuing claims by investors who suffered losses in these Morgan Keegan bond funds and other subprime mortgage related investments. The associated law firms are: Burke, Harvey & Frankowski of Birmingham, AL and Burg Simpson of Dallas, TX. The Hayes Law Firm focuses its practice entirely on representing investors and early retirees who lost money in the stock market. For more information, please visit our web site at www.dhayeslaw.com to obtain a full copy of the FINRA Arbitration Award. The Firm’s informative blog provides educational articles dealing with investor issues at http://aboutbrokerfraud.typepad.com/about_broker_fraud_blog.
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