State securities regulators in Alabama, Kentucky, Mississippi, South Carolina and Tennessee are sending checks for $100 million Monday to investors who were among over 34,000 account holders lost $1.5 billion in a 2007-2008 Morgan Keegan & Company municipal bond fraud.
The Securities and Exchange Commission will be distributing another $100 million on a date yet-to be announced.
Raymond James bought Morgan Keegan in April.
Checks are being written to claimants who sent in applications and were approved. The deadline for investors to apply was June 16.
The payouts mark the beginning of the end of the joint enforcement activity by state securities overseers, SEC and Financial Industry Regulatory Authority.
In June 2011, the regulators reached a settlement with the brokerage surrounding allegations of misconduct in the selling of seven proprietary Morgan Keegan mutual funds.
While the total state/SEC payouts amount on average to 13 cents on a dollar, some claimants will be
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