Did you invest in Regions Morgan Keegan “RMK” Funds?
Morgan Keegan sold its proprietary open end RMK Funds (RMK Select intermediate Bond Fund and RMK Select High Income Fund) and closed end RMK funds (RMK High Income Fund, RMK Strategic Income Fund, RMK Advantage Income Fund and RMK Multi-Sector High Income Fund) as superior fixed income funds which offered higher yields and lower risks when compare to their peer funds. In fact, the RMK funds were unlike virtually any other fixed income funds available to retail investors in that they were invested primarily in structured finance. The RMK funds invested in low tranches of CDOs, CMOs and CMBs and other structured finance securities. By the end of 2007, the holdings in the RMK Funds’ were essentially eradicated. Sonn | Erez believes that investors were misled into believing that the RMK funds were low risk or safe investments and that Morgan Keegan concealed the extreme risks attached to the ultra speculative specialty structured finance funds. Sonn | Erez believes that Morgan Keegan is liable for investors’ losses in the RMK funds.
Sonn | Erez has recovered millions of dollars from Morgan Keegan for investors in FINRA arbitration proceedings. In 2010, Sonn | Erez recovered $1.08 million or 100% of losses in the RMK funds and $l.1million or 80% of losses in the RMK funds in two arbitration proceedings. In 2009, Sonn | Erez recovered $430,000 in a FINRA arbitration hearing for investors whose net losses in the RMK funds were $340,000 and $285,000 for an investor whose net losses in the RMK funds were $190,000.
On April 7, 2010, the Securities and Exchange Commission (“SEC”), FINRA, the Alabama Securities Commission, the Kentucky Department of Financial Institutions, the Mississippi Secretary of State’s Office and the South Carolina Office of the Attorney General all filed charges against Morgan Keegan and several of its employees for fraudulent activity in connection with all of the RMK funds.
If you believe that you have been misled as to the risk, of investing in the RMK funds and wish to learn more about our investigation and current cases, please call us at toll free at 1-844-689-5754 or fill out the “contact us” forms.