Morgan Keegan in trouble again….

Monday, April 23rd, 2012

The Labor Department recently entered into a settlement with Morgan Keegan & Co. Inc., following an investigation revealing that the independent broker-dealer accepted payments for recommending funds of hedge funds to plan clients.

Under the terms of the settlement, Morgan Keegan was ordered to pay $633,715 to 10 pension plans allegedly victimized by the scheme.

The alleged violations took place between April 2001 and November 2008.

The settlement requires that Morgan Keegan disclose to plan clients covered by the Employee Retirement Income Security Act of 1974 whether it is acting as a fiduciary. If so, it will have to break down the services it is providing and share with clients a description of compensation received from any source.

The foregoing information has been provided by The White Law Group.  The White Law Group is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.  The firm’s securities attorneys represent investors in claims against their brokerage firm or financial advisor.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.

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