Judge Hears Mamtek Factory Project Suit
COLE COUNTY - A judge set a hearing for Friday in the case of the Mamtek factory project.
The purpose of the hearing is to determine whether the State Securities Commissioner has too much power in a lawsuit stemming from his collapse.
The investment banking firm Morgan Keegan filed a lawsuit against Secretary of State Jason Kander after Kander's office issued a cease-and-desist order to stop committing fraud in the marketing of bonds to finance Mamtek.
The office's order had Morgan Keegan repaying $6.5 million to Missouri investors and forfeiting its $2.5 million in profits from $39 million in bonds sales to finance the factory.
Cole County Circuit Judge Jon Beetem ruled the case could move forward last week. Because Morgan Keegan is raising constitutional challenges to the securities commissioner law, Judge Beetem will hear arguments on the merits of the challenge.