SEC sets up bond funds settlement

Mississippi officials are hoping a workable structure is in place for final payments to Mississippi investors in a multistate settlement against Morgan Keegan & Co. and Morgan Asset Management over sales violations and overvaluing of five bond funds sold to more than 30,000 investors in five states.

The Securities and Exchange Commission has set up a proposed “Fair Fund” that will disburse $100 million to affected investors in Mississippi, Alabama, Kentucky, South Carolina and Tennessee. That fund will succeed a states-administered pool that distributed an additional $100 million that was part of a settlement announced between state and federal government agencies and Morgan Keegan two years ago.

Clarion Ledger
4/23