JACKSON, Miss. (AP) - Morgan Keegan & Co. has been granted an administration hearing on allegations that its brokerage firm of costing investors, including retirees, more than $2 billion through fraudulent and reckless business practices.
Mississippi Secretary of State Delbert Hosemann said Thursday that the hearing will be held Oct. 5 in Montgomery, Ala., at the offices of the Alabama Securities Commission
The states of Mississippi, Alabama, Kentucky and South Carolina along with the Securities and Exchange Commission and the Financial Industry Regulatory Authority on April 7 announced administrative actions against the Memphis, Tenn.-based company. Morgan Keegan is owned by Birmingham, Ala.-based Regions Financial Corp.
Regulators allege Morgan Keegan overstated the value of funds backed by subprime mortgages and used false and misleading sales materials. No criminal charges have been filed.
Morgan Keegan has said the charges are based on incorrect analysis of the facts and the law.