Morgan Keegan must repay the financial losses of fourteen RMK investors, attorneys' fees and the costs of the proceeding, according to the January 30, 2012 Order of an arbitration panel of the Financial Industry Regulatory Authority (FINRA) which heard the case in Birmingham, Alabama.
The Claimants are fourteen out of thousands of investors who lost money as a result of Morgan Keegan's fraudulent conduct in connection with the RMK (Regions Morgan Keegan) family of bond funds. The Claimants were represented by Attorney Howard Prossnitz, of Chicago, IL and Richard Frankowski, of The Frankowski Firm in Birmingham, AL.
One of the funds at issue in the case, the RMK Select Intermediate Bond Fund, is the subject of a now infamous "smoking gun" May 2007 e-mail from Gary Stringer, investment director of Morgan Keegan's Wealth Management division, who stated: "Mr. & Mrs. Jones don't expect that kind of risk from their bond fund. . . . I'd bet that most of the people who hold that fund have no idea what's it's actually invested in. I'm just as sure that most of our [Financial Advisors] have no idea what's in that fund either."