Morgan Keegan repays $200 million

Morgan Keegan repays $200 million

November 1st, 2011 by Staff Report in Business Around the Region

Investors who lost an estimated $1.5 billion in 2007 and 2008 from proprietary bond funds sold by Morgan Keegan & Co., will soon recoup $200 million of their losses.

The U.S. Securities and Exchange Commission and regulators from Tennessee, Alabama and three other states said Monday that A.B. Data Ltd. will distribute $200 million back to investors.

The money will be paid to about 30,000 account holders who lost money because of what regulators said was fraudulent sales of subprime mortgage-backed securities by the Memphis firm.

Follow the latest Chattanooga news on Facebook