Shelter Insurance Files Lawsuit For Failed Mamtek Project
COLUMBIA - Shelter Insurance has filed a lawsuit against Morgan Keegan and Company, the company Shelter says sold it bad bonds for the failed Mamtek project in Moberly. Shelter insurance is suing Morgan Keegan and Company for more than $390 million. Specifically, the lawsuit says the investment banker, a company out of Memphis, didn't protect Shelter Insurance.
Shelter insurance invested $5. 6 million worth of bonds in Mamtek which was a proposed sugar plant that never opened in Moberly. A Chinese company had promised to build Mamtek within the city. The factory building was completed, but the project collapsed before anyone was hired. Regardless, Moberly had sold bonds to Morgan Keegan and Company who then resold them to companies looking to invest in the project. As a result, Morgan Keegan and Company made a profit of $411,000 for underwriting the bonds.