BIRMINGHAM, Ala., May 11, 2009 (GLOBE NEWSWIRE) -- A Birmingham, Alabama FINRA arbitration panel last Friday awarded two Alabama residents their full losses, attorney fees, statutory interest and costs in an arbitration award of almost $700,000. The arbitration claim centered around purchases of Regions Financial Corp.'s (RF) brokerage firm subsidiary Morgan Keegan's proprietary bond funds managed by James C. Kelsoe.
The award was the second largest nationally against Morgan Keegan arising out of the meltdown of the firm's bond funds. According to attorney Andrew Stoltmann, who represented the investors in the arbitration claim, "The awarding of almost $700,000 in a claim where the principal losses were about $455,000 is a crystal clear message sent to Morgan Keegan that the arbitrators were repulsed by the firm's derivative laced mutual funds and the actions of the firm. Morgan Keegan has now lost 15 of the last 17 arbitration cases tried against it and it is becoming clear to everyone that the firm took advantage of thousands of elderly, retired clients by selling its derivative laced, toxic waste mutual funds."
The client's net losses were $302,989. The principal losses were $455,669. The Panel awarded the Claimants $455,669 in compensatory damages, $151,738 in attorney fees, $62,882 in statutory interest, and $12,500 in expenses. The case, heard in Birmingham, Alabama, is captioned Edward King and Roderick King v. Morgan Keegan & Company, Inc. (Case Number 08-00336).
According to the investors' attorney, Chicago securities attorney Stoltmann, "This 'make whole' arbitration award, granting of losses, attorney fees, interest and costs, affirms our view that Morgan Keegan clearly took advantage of thousands of unsuspecting investors nationally. These funds contained extraordinarily risky derivatives that were unsuitable and inappropriate for virtually any investor, much less retirees who didn't want to gamble. In fact, it was established at hearing that Morgan Keegan portrayed these funds as safe, conservative and appropriate for clients with an investment objective of capital preservation. The funds were anything but safe and secure."
This is the second arbitration award secured by Stoltmann Law Offices in the last three days. In the first award, a Saint Louis, Missouri retiree secured a $145,000 award, which included $50,000 in punitive damages, in a claim where the losses were $50,000. The panel also awarded full losses, attorney fees, interest and costs.
For more information on the award, please contact Andrew Stoltmann.