What is Morgan Keegan?
Morgan Keegan & Company is a regional investment banking, securities brokerage, trust and asset management firm that was founded in 1969 in Memphis, Tennessee. Currently, Morgan Keegan has over 450 offices in 19 states with over 4,000 employees and over $650 million in equity capital. Morgan Keegan is also currently at the center of a huge mutual funds fraud investigation that has cost investors, so far, several billion dollars.
What are some of the misrepresentations and omissions made by Morgan Keegan?
The dramatic losses in share value were caused by several misrepresentations and omissions made by Morgan Keegan and the brokers who sold the mutual funds portfolios including but not limited to:
- Heavy investment in fairly new types of securities that had not been tested through market cycles;
- Failure of the funds to have previously complied with required disclosure procedures relating to the manner in which the funds’ assets were invested;
- The lack of liquidity in the funds’ portfolios;
- The inherent uncertainty in the estimated value of their assets; and
- The failure to disclose breaches and failures in the conditions in the funds’ portfolios that rendered them highly vulnerable to changes in market conditions.
What are misrepresentations and omissions?
A broker may be liable to a customer if the broker misrepresents material facts (lies) or fails to disclose material facts (leaves out important information) to the investor in the sale or recommendation of an investment. Usually, misrepresentations or omissions disguise the risk associated with a particular investment. The broker has a duty to fairly and accurately disclose all of the risks associated with an investment and not just the bullish, optimistic sale points. We believe that Morgan Keegan misrepresented facts to investors and also omitted pertinent information. Unfortunately, these abuses are common. In the year 2000, there were approximately 1,321 cases filed with the NASD alleging a broker misrepresented a material fact or failed to disclose material information to an investor.
I’ve heard that I just need to be patient and that the value of the funds will come back. Is this true?
No, this is not true. This is just one of Morgan Keegan’s latest tactics—telling investors to hang in there and that the funds will come back and that special dividends will be issued to make up for the losses. Please be very wary of these promises. Morgan Keegan may be trying to get you to hang in there and not pursue legal action until you have missed the statute of limitations. The statute of limitations requires victims to file their claims within a certain time after events occur that are the source of the claim. To recover investment losses and losses with bond funds at Morgan Keegan for fraud, it is crucial to file a lawsuit or arbitration claim as soon as possible.
Is securities fraud a widespread problem?
Unfortunately, securities fraud is a huge problem, and abuses are widespread. It has been estimated that approximately $40 billion is lost due to securities fraud each year. The NASD, in the year 2000, saw almost 6,000 securities fraud cases and the number gets larger each year. What is more surprising is that the overwhelming majority of all investment abuses are never even reported. The cases that are actually filed against brokers, insurance agents, and investment advisers each year are just the tip of the iceberg.
What should I do if I have been the victim of securities fraud?
If you or someone you love has been the victim of securities fraud you should contact a securities fraud lawyer, a corporate fraud lawyer, or an investment fraud lawyer. A securities fraud lawyer will not only inform you of your rights as an investor, but also help to recover some, if not all, of what you lost.
The highly trained and passionate securities fraud attorneys at Burke Harvey & Frankowski, LLC will fight for your financial losses regardless of where in the United States you live. If you have been a victim of the sub-prime mortgage market collapse due to Morgan Keegan’s misrepresentations and omissions, please email us or call us toll-free at 888-930-9091 today.
