SEC charges 8 ex-Morgan Keegan mutual fund directors - WSMV Channel 4

SEC charges 8 ex-Morgan Keegan mutual fund directors

Posted: Updated:

WASHINGTON (AP) - Eight former mutual fund directors are facing civil charges after they allowed others at the firm to set values for mortgage securities and investors lost roughly $1.5 billion on five funds.

The Securities and Exchange Commission says the directors at Morgan Keegan & Co. delegated the duty to fund managers, even though directors are required by law to set values when market prices are not available.

Last year, Morgan Keegan agreed to pay $200 million to settle the SEC's fraud charges that it inflated the investments' value as the housing market was collapsing in 2007.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by WorldNow
WSMV
Powered by WorldNow CNN
All content © 2014, WSMV; Nashville, TN. (A Meredith Corporation Station) and WorldNow. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.