By JB Clark/NEMS Daily Journal
TUPELO – Mississippians who lost money in Morgan Keegan investments are running out of time to recoup some of their losses.
Morgan Keegan was ordered to pay $200 million as a result of a multi-state and federal investigation into seven bond funds sold by Morgan Keegan broker-dealer agents.
According to Secretary of State Delbert Hosemann, the investigation found that Morgan Keegan omitted and misrepresented its funds in explaining them to their sales staff and marketing them to their customers. Hosemann’s office also found preferential treatment was given to some customers.
The funds lost the majority of their value from March 2007 to March 2008.
Anyone who invested in Morgan Keegan’s Select Intermediate Bond Fund, Select High Income Fund, Advantage Income Fund, High Income Fund, Multi-Sector High Income Fund, Strategic Income Fund or Short Term Bond Fund between March 2007 and March 2008 is entitled to file a claim.
The deadline to file is June 16.
The $200 million paid by Morgan Keegan was split evenly between the Securities and Exchange Commission and the states involved in the investigation. The first payout is coming from the $100 million states’ fund.
“The pool will be divided among people who have losses,” said Hosemann at a press conference Thursday in Tupelo. “None of it will be reverted to the state of Mississippi and none of it reverts back to Morgan Keegan. If you’re not in the pool, you’re not going to get any money. Your neighbor is going to get your check.”
Hosemann said about 2,000 claims have been filed by Mississippians.
“We’re concerned that there may only be about 50 percent of claims that could be filed,” he said. “If you don’t file by June 16, you will miss the first $100 million pool. All you have to do is sign it and send it in.”
TO FILE a claim, go to www.sos.ms.gov or call (601) 359-1650 for help.