Morgan Keegan Hammered For $210,000
A Birmingham, AL Financial Industry Regulatory Authority (FINRA) arbitration panel has awarded $210,000 to a Claimant who lost money in RMK bond funds, including the RMK Advantage Income Fund, the RMK Strategic Income Fund, the RMK Select High Income Fund and the RMK Select Intermediate Bond Fund. The claim was brought by four Claimants. One died prior to the hearing and his claim was dismissed. Two other Claimants settled prior to the hearing, leaving only one Claimant left to proceed.
The remaining Claimant asserted various claims including breach of fiduciary duty, negligent supervision, over concentration and failure to disclose the nature and extent of risk involved in investing in the bond funds, among other things. The panel decided that Morgan Keegan was liable and ordered them to pay Claimant Nellie Wyatt $210,000 in compensatory damages. All $16,450 in forum fees were assessed against the Respondent, Morgan Keegan. (FINRA# 08-04956; D. Ward Haarbauer et al v. Morgan Keegan & Company Inc.)