Stock Broker Fraud

Many investtors lost large sums of money in the Region Morgan Keegan Select High Income Fund; Regions Morgan Keegan Strategic Income Fund; Regions Morgan Keegan Select Intermediate Bond Fund; Regions Morgan Keegan Multi-Sector High Income Fund; or the Regions Morgan Keegan Advantage Income Fund.

The law firm of Sonn & Erez does not believe that these losses were caused solely by market forces, as Morgan Keegan may contend. On July 19, 2007. Bloomberg News described James Kelsoe, the funds’ manager, as having an “intoxication” with structured financial products which “kept him from pulling out completely.” These high risk products included “collateralized debt obligations” (CDOs), “collateralized mortgage obligations” (CMOs) and “collateralized loan obligations” (CLOs). Much of the losses are related to the surging defaults and delinquencies in the loans that underlied the securities that Kelso bought.

In one class action suit, directed at the RMK Advantage Income Fund and the RMK Strategic Income Fund, allegaions were made that investors were not told about the true risks of the fund, the extent to which the funds were invested in illiquid securities; that due to the illiquidity of some assets, the fund manager was forced to sell the lower risk assets first, thereby penalizing fund holders; that the funds were heavily invested in risky subprime loans and collateralized debt obligations; that the funds’ board of directors had a conflict of interest; that the funds, which were said to be independent with different strategies, were nearly identical in strategy, resulting in increased risk and that the pre-2006 results were attributable to their concentration in illiquid, subprime and untested investment structures. The bottom line is that it appears that investors may have been hoodwinked by Morgan Keegan.

Investors have lost hundreds of millions of dollars, or more, in Morgan Keegan Bond Funs managed by James Kelsoe, and sold by Morgan Keegan brokers, some of whom feel that they were mislead by Kelsoe themselves. Investors are fighting back. Investors are hiring securities arbitration attorneys, such as Sonn & Erez, to sue to recover their losses. Call us at 1-8… for a free evaluation. Cases are handled on a contingency fee basis. No recovery, No fee. In some cases, the firm will advance the costs of the suit for investors.

Sonn & Erez is “AV” rated by Martindale Hubbel, the independent lawyer rating service. “AV” means Very High to Preeminent lawyer abilities and the highest ethical rating available. The lawyers at Sonn & Erez have substantial securities arbitration and litigation experience, and have recovered millions of dollars for their clients. Sonn & Erez believes that investors should bring individual arbitration actions, rather than a class action for their case.

In an arbitration, a three arbitrator “jury type” panel decides the case. Arbitration has been demonstrated to be cheaper, faster and more final than court. Whereas a class action in court can take years to resolve, arbitrations can generally get resolved in 12-18 months. Arbitration is far from a perfect alternative resolution than court, but in many cases can better serve those who cant wait years to get their money back. Call 1-868-372-8311 today for more information. Please note that Sonn & Erez will not be suing individual stockbrokers, but the Morgan Keegan brokerage firm company, and possibly senior officials, who should be responsible for these losses.

Many times, it is the stockbrokers themselves who step forward, and provide truthful testimony that their employer was not completely truthful about the products they sold, and sometime even mislead the brokers themselves. The stockbrokers themselves may even have claims against Morgan Keegan and James Kelsoe for misleading them as well. Dont suffer in silence.