Morgan Keegan will pay a $850,000 settlement for Mamtek fraud
JEFFERSON CITY – Morgan Keegan will pay $850,000 for Mamtek securities fraud.
Secretary of State Jason Kander announced on Monday that Morgan Keegan & Co., Inc. would pay a total of $850,000 settlement for the defaulted bonds sold by the Mamtek sucralose factory in Moberly, including $750,000 to Missouri’s general revenue fund.
In addition, Morgan Keegan has hired an expert to review its municipal bond underwriting procedures and will implement any suggested changes by Kander’s office to prevent similar situations in the future.
“My office will continue to make sure that financial institutions do business in a responsible ethical way in Missouri,” Kander said.
In 2010, Moberly issued $39 million in bonds to finance the Mamtek sucralose factory’s construction. Morgan Keegan helped Moberly prepare its bond offerings and sold them to the public. In 2013, Kander filed a lawsuit in Boone County Circuit Court against Morgan Keegan, alleging the company failed to examine Mamtek’s business plan critically and inform the investors about the risks.
Kander filed his own lawsuit and his settlement is to ensure Morgan Keegan will conduct future securities offerings adequately. Morgan Keegan has settled separately with Missouri investors who lost millions in the incident.