Phoenix Panel Orders Morgan Keegan To Pay In Bond Fund Case
A Financial Industry Regulatory Authority (FINRA) arbitration panel in Phoenix, Arizona has ordered Morgan Keegan & Company Incorporated to pay $145,846 in compensatory damages and costs to Claimants for loses its proprietary bond funds, RMK High Income Fund (RMH), RMK Strategic Income Fund (RSF) and RMK Multi-Sector High Income Fund (RHY).
The Statement of Claim was filed in June 2010, alleging various causes of action, including the violation of the Arizona Securities Act and violations of Rule 10b-5 of the Securities Act of 1934, among other things. The Claimants were seeking $200,000 in compensatory damages, which was revised to $273,567 at the conclusion of the evidentiary hearing.
Following the four day evidentiary hearing, the FINRA arbitration panel went into executive session to consider all of the oral and documentary evidence presented. Thereafter, the panel decided that Respondent, Morgan Keegan & Company Incorporated was liable for and ordered to pay $135,846 in compensatory damages, plus $10,000 for costs. Additionally, Morgan Keegan was ordered to reimburse the Claimants for the $300 non-refundable portion of the initial filing fee. In its final act regarding this case, the panel assessed $9,150 in forum fees for the arbitration against Morgan Keegan and $4,575 against the Claimants. (FINRA# 10-02877; Henry and Augusta R. Feinstein, Augusta R. Feinstein IRA and Henry Feinstein Roth IRA Account v. Morgan Keegan & Company Incorporated).