The Law Office of Thomas F. Burke, P.C. Announces Successful Arbitration Against Morgan Keegan and Company
11 June 2009 - 2:10AM
PR Newswire (US)
CHICAGO, June 10 /PRNewswire/ -- The Law Office of Thomas F. Burke,
P.C. (http://www.thomasfburkepc.com/) announces that he has
successfully conducted an arbitration at the Financial Industry
Regulatory Authority ("FINRA") in San Francisco, California on
behalf of clients that had purchased the Morgan Keegan High Income
Fund (RMH) and the Morgan Keegan Multi-Sector High Income Fund
(RHY). The Claimants, Gary Fitzgerald and Stephen Fitzgerald, were
awarded $267,711 plus interest based on claims of fraud,
negligence, breach of fiduciary duty and violations of state
statutes. The claims alleged that Morgan Keegan failed to
adequately disclose the risks involved with these highly
speculative investments and should not have recommended them to the
Fitzgerald brothers. In this case, and in many other Morgan Keegan
cases, the investors life savings were put into these risky funds.
The bond funds were heavily invested in subordinated tranches of
asset backed securities and mortgage backed securities, thereby
undercutting Morgan Keegan's claims that the funds were
diversified. These type of investments allowed James Kelsoe, the
fund manager for the funds, to obtain a high rate of return because
of the high risk that was associated with these investments. When
the liquidity for these speculative investments dried up, the
Morgan Keegan proprietary bond funds incurred huge losses while
other bond funds, which had not made similar investments, did not
incur the same degree of losses. There are currently pending
hundreds of cases against Morgan Keegan relating to the following
bond funds: RMK High Income Fund (Symbol: RMH) RMK Multi-Sector
High Income Fund (Symbol: RHY) RMK Advantage Income Fund (Symbol:
RMA) RMK Strategic Income Fund (Symbol: RSF) Regions MK Select High
Income -A (Symbol: MKHIX) If you have lost money by investing in
any of the above Morgan Keegan funds, you are invited to contact
The Law Office of Thomas F. Burke, P.C. by telephone at 312/
362-1300 or email at for a free consultation about an opportunity
to recoup your losses. DATASOURCE: The Law Office of Thomas F.
Burke, P.C. CONTACT: The Law Office of Thomas F. Burke, P.C.,
+1-312-362-1300, Web Site: http://www.thomasfburkepc.com/
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