Missouri’s secretary of state has filed a civil enforcement action against Memphis-based Morgan Keegan and against 10 of its employees who worked on the sale of $39 million in bonds for the scrapped Mamtek sugar refinery in Moberly. Secretary of State Jason Kander accuses the firm of securities fraud and is seeking $6.7 million in restitution for Missouri investors and $15 million in civil penalties.
“If not for Morgan Keegan’s failure to satisfy basic due diligence standards, we wouldn’t be here today,” Kander said. “Had they done that it would have revealed to Missouri investors that Mamtek’s promises were false.”
Kander’s office also seeks to have Morgan Keegan barred from underwriting any more bond issues in Missouri until it hires an independent consultant to review its due diligence policies.