The Securities and Exchange Commission Announces Plan to Distribute the Morgan Keegan Fair Fund

MILWAUKEE, Sept. 19, 2013 /PRNewswire/ -- The following was released today by A.B. Data, Ltd.:

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SUMMARY NOTICE OF MODIFIED PLAN OF DISTRIBUTION
TO MORGAN KEEGAN INVESTORS REGARDING MORGAN KEEGAN FAIR FUND

IF YOU HELD SHARES IN ONE OR MORE OF THE MORGAN KEEGAN FUNDS, LISTED BELOW, FROM JANUARY 1, 2007, THROUGH AND INCLUDING AUGUST 10, 2007 ("RELEVANT PERIOD"), YOU MAY BE ELIGIBLE FOR A DISTRIBUTION FROM A FAIR FUND ESTABLISHED BY THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE "MORGAN KEEGAN FAIR FUND").

PLEASE READ THIS NOTICE CAREFULLY AND IN ITS ENTIRETY.  YOU MAY BE ELIGIBLE FOR A DISTRIBUTION FROM THE MORGAN KEEGAN FAIR FUND.  THIS NOTICE CONTAINS IMPORTANT INFORMATION ON WHAT IS REQUIRED TO PARTICIPATE IN THE DISTRIBUTION.

BASIC INFORMATION

On June 22, 2011, the U.S. Securities and Exchange Commission (the "Commission") issued a Corrected Order Making Findings and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of the Investment Company Act of 1940, and Imposing Suspension Pursuant to Section 4C of the Securities Exchange Act of 1934 and Rule 102(e)(1)(iii) of the Commission Rules of Practice ("Order").  (Exchange Act Rel. No. 64720 (June 22, 2011)).  The Order stated that Morgan Asset Management, Inc. and Morgan Keegan & Company, Inc. (collectively "Morgan") failed to employ reasonable pricing procedures for subprime mortgage-backed securities and consequently did not calculate accurate net asset values for certain funds offered by Morgan containing those subprime mortgage-backed securities (the "Funds").  The Order also stated that James C. Kelsoe, Jr. and Joseph Thompson Weller, CPA caused Morgan's false valuations of the subprime mortgage-backed securities comprising the Funds' portfolios.  The Order created a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended.  Morgan, Kelsoe, and Weller (collectively "Respondents") simultaneously submitted an Offer of Settlement, agreeing to pay a total of $100,300,000.00 in disgorgement, prejudgment interest, and civil money penalties.  

On April 3, 2013, Pursuant to Rule 1103 of the Commission's Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1103, the Commission issued a Notice of Proposed Plan of Distribution and Opportunity for Comment for the distribution of the Morgan Keegan Fair Fund (Exchange Act Rel. No. 69288 (April 3, 2013)).  The Commission provided all interested parties thirty (30) days to submit a comment on the Proposed Plan of Distribution.  Six comments were submitted, three within the thirty (30) days comment period and three after.  After careful consideration, the Commission has concluded that the Proposed Plan of Distribution should be approved in accordance with the changes described in Section II.B. of the Order Approving Modified Plan and Setting Fund Administrator Bond Amount issued on August 16, 2013.   (Exchange Act Rel. No. 70222 (Aug. 16, 2013)).  

The Modified Distribution Plan (the "Distribution Plan") provides that the Morgan Keegan Fair Fund, totaling $100,300,000 will be distributed for the benefit of harmed investors who held shares in one or more of the Funds at any time during the Relevant Period, and incurred a loss based on the Distribution Plan.

Morgan entered into a simultaneous settlement for similar misconduct relating to the Funds' valuations with thirteen states in which it agreed to certain undertaking and to pay $100,000,000.00 that would be distributed to harmed investors through a separate settlement fund (the "States' Fund").  The Morgan Keegan Fair Fund is separate and independent from the States' Fund.  Although the Commission's proceeding relates to the same Funds as those involved in the states' matter, the Commission's action relates to different allegations, and includes harmed investors who held shares in one or more of the Funds at any time during the Relevant Period, which is a subset of the period involved in the states' matter.

WHO IS ELIGIBLE FOR A DISTRIBUTION

You may be eligible for compensation from the Morgan Keegan Fair Fund if you held shares in one or more of the Funds during the Relevant Period, and incurred a loss based on the Distribution Plan.  Additional information is available in the Distribution Plan and other related documents available at MorganKeeganSettlement.com or by contacting the Administrator at the toll-free number 1-888-208-9083 or email address [email protected].

HOW TO SUBMIT A CLAIM

If you believe you are eligible for a distribution from the Morgan Keegan Fair Fund, you must submit a completed Proof of Claim Form (the "Claim Form") to the Administrator, postmarked no later than January 11, 2014. 

Notice of Modified Plan of Distribution to Morgan Keegan Investors Regarding Morgan Keegan Fair Fund (the "Notice") and the Claim Form were mailed on September 13, 2013, to all identifiable, potentially eligible claimants who held Fund shares during the Relevant Period.  If you did not receive a copy in the mail you may download the Notice and the Claim Form directly from the website MorganKeeganSettlement.com or call the Administrator toll-free at 1-888-208-9083 to request a copy be mailed to you.

GETTING MORE INFORMATION

You may obtain copies of the Notice, Claim Form, the Distribution Plan, and other relevant documents from MorganKeeganSettlement.com, by writing to the Administrator at the address below, or by calling toll-free 1-888-208-9083 to have a copy of the Notice and Claim Form mailed to you. 

All questions should be directed to the Administrator at:

MORGAN KEEGAN FAIR FUND
ADMINISTRATOR
c/o A.B. DATA, LTD.
PO BOX 170500
MILWAUKEE, WI  53217-8091
1-888-208-9083
[email protected]

In order to file a claim and potentially receive a distribution,
you must submit a Claim Form postmarked no later than January 11, 2014.

DATE:    SEPTEMBER 19, 2013

Contact:
Morgan Keegan Fair Fund Administrator
888-208-9083

SOURCE A.B. Data, Ltd.