Morgan Asset Management, Inc., Morgan Keegan & Company, Inc., et al.
On June 22, 2011, the SEC entered a Corrected Order Making Findings and Imposing Remedial Sanctions and a Cease-and-Desist Order against Morgan Asset Management, Inc., Morgan Keegan & Company, Inc., James C. Kelsoe, Jr. and Joseph Thompson Weller, CPA (collectively, Respondents). According to the SEC Order, from January 1, 2007 through July 31, 2007, Morgan Keegan failed to employ reasonable pricing procedures for subprime mortgage-backed securities that comprised certain closed-end funds and an open-end fund managed by Morgan Asset and, as a result, failed to calculate accurate daily net asset values for the funds. The SEC Order created a Fair Fund according to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended.
According to the SEC Order, Respondents paid a combined $100,300,000 in disgorgement, prejudgment interest and civil money penalties. Morgan Keegan will pay all reasonable costs and expenses of the distribution.
On April 3, 2013, the SEC published a Notice of Proposed Plan of Distribution and Opportunity for Comment. The Notice specifies how copies of the proposed plan of distribution can be obtained, describes the process by which persons may comment on the plan and provides a link to the plan. You can review the Notice on the SEC's website at http://www.sec.gov/litigation/admin/2013/34-69288.htm.
Persons wishing to comment on the plan must submit written comments on or before May 2, 2013. After the comment period concludes, the plan will be submitted to the SEC for approval.