Morgan Keegan Receives Wells Notice Related to Bond Funds

Morgan Keegan, whose bond funds imploded in spectacular fashion in 2008, disclosed that it received a Wells Notice from the SEC on July 7, 2009. A Wells Notice is notification that the SEC staff intends to recommend that it bring an enforcement action for possible violations of federal securities laws. The bond funds at issue were run by James Kelsoe, a portfolio manager at Region Morgan Keegan’s asset management arm. There are approximately over one hundred pending arbitration matters against Morgan Keegan related to the bond funds. Our firm presently represents investors from around the country who unfortunately invested in the funds. It will be interesting to see how the post-Madoff SEC handles the investigation and how it may potentially affect the pending arbitration proceedings.