Morgan Keegan Settles with the SEC For $200 Million Over Subprime MBS Fraud Charges

On June 22, 2011, the SEC announced that securities brokerage firm and investment manager, Morgan Keegan & Co. and Morgan Asset Management, agreed to a $200 million settlement. The SEC alleged that Morgan Keegan regularly inflated daily quotes in order to increase the net values of five separate RMBS bond funds and ignored lower values for the RMBS reported by the broker-dealers who were trading the securities. According to SEC, the company then sold and redeemed shares of those securities to investors based on inflated net asset values. MK Settlement.