Time Running Out for Morgan Keegan Settlement
Time is running out for Kentucky investors to file a claim in the Morgan Keegan bond fund settlement.
The company agreed to a 200 million dollar settlement with state and federal regulators following the investigation of seven proprietary bond funds. Over the course of a year, the funds lost approximately 1.5 billion dollars in value.
“Investors were led to believe, as well as the sales force, that they were actually safe bonds, when indeed they were risky because of the underlying investment,” says Shonita Bossier.
Shonita Bossier, with the Kentucky Department of Financial Institutions says the Morgan Keegan portfolio suffered because of investments in mortgage-backed securities and subprime products. Investors in five states were affected, including around 2,500 in Kentucky. Eligible account holders have until June 16th to file a claim form to receive a portion of the settlement.