Stock Broker Fraud

The state of Illinois found that Morgan Keegan had failed to implement adequate training, compliance, or marketing procedures in the sale of their proprietary RMK high yield bond funds, specifically failing to tell customers that they could not take these funds with them if they left the firm. See State of Illinois vs. Morgan Keegan, file#00500619 (June 4, 2007). “In my opinion, this was just the precursor to what we now believe was a massive mismarketing scheme, where we think Morgan Keegan was telling customers that their RMK High Yield Bond funds were conservative, low risk or moderate risk funds, when they were actually speculative funds that contained risky low tiered tranches of asset backed securities, what bankers commonly call “toxic waste,” said Jeffrey Sonn, Esq., Sonn & Erez, which is representing many victims. It is estimated that the six proprietary Morgan Keegan High Yield bond funds lost over $2 billion in 2007 and 2008. The Morgan Keegan bond funds that are 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)
*RMK Strategic Income Fund (Sym RSF)
*RMK High Income Fund (sym: RMH)