FINRA Orders Morgan Keegan to Pay Texas Investor
The U.S. Financial Industry Regulatory Authority (FINRA) directed Morgan Keegan & Co. Inc. to pay $1.4 million as compensation to an investor from Texas over losses related to bond funds that the brokerage allegedly misrepresented as a stable, low-risk investment. According to the suit filed in October 2010, the plaintiff and a family trust owned by him bought shares worth $16 million in a bond fund from Morgan Keegan and experienced heavy losses even though he was assured by the brokerage that the fund was a "safe and conservative investment," reports Law360 (