Two years later, Feds determine plans to release much-needed funds to MS investors
The Securities and Exchange Commission releases distribution plan for Morgan Keegan victims
Jackson, Miss.- After repeated requests, the Securities and Exchange (SEC) commission has finally announced the proposed plan to distribute Morgan Keegan settlement funds to Mississippi investors.
"For two years, the SEC ignored the pleas of investors to release this money. They desperately need their settlement funds," says Secretary Hosemann. "It is beyond time for the federal agency to allocate the funds and bring some closure to Morgan Keegan investors."
In June of 2011, the State of Mississippi, other states, and the SEC reached a settlement agreement with Morgan Keegan and Morgan Asset Management in the amount of $200-Million. The settlement payments are for failing to disclose risks associated with certain investments and presenting misleading marketing materials to investors.
As part of the settlement agreement, $100-Million has already been distributed to investors by the States. The other $100-Million was to be distributed by the SEC. The Secretary of State made repeated demands for payment of these funds and requested the State's Congressional delegation made demands, which they did. Finally three (3) investors filed a lawsuit against the SEC to demand payment and the Attorney General demanded action and gave the SEC fourteen days (14) to respond.
"By their own administrative rule, the SEC is required to have a distribution plan in place within 60 days of the Commission receiving funds. It has been two years. We have thousands of Mississippians who have lost millions of dollars. It is unconscionable it took this long to get Mississippians their own money from their own government," adds Hosemann.
The proposed distribution plan was announced by the SEC last week. Anyone who would like to comment on the proposed plan may submit their comments to the SEC by May 3, 2013.
Overall, over $78,000,000 was lost by Mississippians. Critical to Mississippi investors, the distribution plan proposed by the SEC is different from the previous distribution plan. The proposed plan may be found at the following link: http://www.sec.gov/litigation/fairfundlist.htm#morganassetmgmt.
Attached are requests made by the Mississippi Secretary of State, the Mississippi Attorney General and all four members of Mississippi's Congressional delegation to the SEC, asking for the distribution of funds immediately.
AG Letter to the SEC
CDH Letter to the SEC
Congressional Letters to the SEC