The U.S. Securities and Exchange Commission on Wednesday charged Morgan Keegan and two top employees with fraud related to funds that invested in subprime mortgages.
Named in the complaint are fund manager James C. Kelsoe, Jr, and Joseph Thompson Weller, a CPA who was head of the Fund Accounting Department.
The SEC — the agency that started the downfall of Stanford Financial last year — said Morgan Keegan and the two employees “recklessly published” inaccurate information about funds and sold shares to investors based on the inflated prices.
The company’s Memphis office building has been the centerpiece of the downtown skyline for 25 years.
“This misconduct masked from investors the true impact of the subprime mortgage meltdown on these funds,” said William Hicks, associate director in the SEC’s Atlanta Regional Office.
