ATLANTA, Jan. 9, 2012 (GLOBE NEWSWIRE) -- On January 5, 2012, a Financial Industry Regulatory Authority (FINRA) arbitration panel awarded damages and assessed costs against Regions Financial Corp.'s (RF) brokerage unit, Morgan Keegan & Company, Inc., for misconduct that damaged an Atlanta, Georgia-based charity. The case is Callas Foundation v. Morgan Keegan, FINRA Case No. 10-00606. The charity's Morgan Keegan account was managed by broker John Boosalis. The panel found Morgan Keegan concentrated 60% of the charity's account in unsuitable speculative investments which led to the losses sustained by the charity.
Firm principal Jim Dunlap commented on the award, saying, "Significantly, the panel admitted the Multi-State Task Force Notice of Intent to Revoke and Exhibits into evidence and ordered Morgan Keegan Director of Investments Gary Stringer and RMK Fund Compliance Officer Michele Wood to testify in the case--all over the objections of Morgan Keegan. Of course, Morgan Keegan denied all wrongdoing. The panel awarded substantial damages amounting to 115% of the out-of-pocket loss of the charity and assessed forum fees to Morgan Keegan. Along with the Multi-State Task Force Settlement payable to all investors, the charity is projected to recover nearly 130% of its out-of-pocket loss. This is a good result. I'd also like to thank Secretary of State Brian Kemp and the Georgia Securities Department for their work to publish its own Findings of Fact in October 17, 2011. This helped to prove that Morgan Keegan was responsible for the damages caused to Georgia investors, including this important Georgia charity." Morgan Keegan was represented by David King and Jason Hale of Bass Berry & Sims LLP of Nashville, Tennessee.
James A. Dunlap Jr. & Associates LLC and affiliated attorneys have filed arbitration claims on behalf of other investors in the Regions Morgan Keegan Bond Funds as follows:
Formerly RMK High Income Fund --- RMH/Now Helios High Income Fund --- HIH
Formerly RMK Multi-Sector High Income Fund --- RHY/Now Helios Multi-Sector High Income Fund --- HMH
Formerly RMK Advantage Income Fund --- RMA/Now Helios Advantage Income Fund --- HAV
Formerly RMK Strategic Income Fund --- RSF/Now Helios Strategic Income Fund --- HSA
Formerly Regions MK Select High Income-C --- RHICX
Formerly Regions MK Select High Income-A --- MKHIX/Now Helios Select High Income Fund --- HIFAX
Formerly RHIIX---Regions MK Select High Income-I
Formerly RIBCX---Regions MK Select Intermediate Bond Fund-C
Formerly Regions MK Select Intermediate Bond Fund --- MKIBX/Now Helios Select Intermediate Income Fund --- HSIBX
Formerly RIBIX Regions MK Select Intermediate Bond Fund-I
Specific information about the Morgan Keegan fund claims can be reviewed at http://www.jamesdunlaplaw.com/cms.php?id=36.
If you lost money in the Morgan Keegan Bond Funds, please contact of James A. Dunlap Jr. & Associates LLC at 404-354-2363 for a free consultation. You may visit the firm's web site at http://www.jamesdunlaplaw.com.