updated 11/29/2010 1:46:42 PM ET 2010-11-29T18:46:42

CHICAGO, Nov. 29, 2010 (GLOBE NEWSWIRE) -- The Law Offices of Howard B. Prossnitz ( http://www.prossnitzlaw.com) announced that it recently obtained a $541,000 Award in a FINRA arbitration (Case No. 09-04501) for three investors in Morgan Keegan income funds.   The Award represented close to a 90% recovery of the amount sought in the claim. The hearing was conducted in Little Rock, Arkansas before a three person panel. The case involved retirees who had invested a substantial portion of their savings into RMK High Income Funds, RSF, RMH, and RHY, believing them to be bond funds and safer than equities. The Panel found Morgan Keegan and Company, Inc. liable on one or more of the causes of action pled which included state securities act allegations and federal Rule 10b-5 claims. Claimants alleged that Morgan Keegan materially assisted in the preparation of S.E.C. filings which failed to adequately disclose the concentration in bottom tranches of structured products.

Firm principal Howard Prossnitz commented, "This arbitration award was one of the largest to date for individuals who never had accounts at Morgan Keegan, but instead invested through an on line brokerage service after researching Morgan Keegan funds on the internet." The Prossnitz firm has filed over twenty arbitration cases for investors in the RMK High Income Funds. 

Mr. Prossnitz has thirty-four years of litigation experience in complex cases including securities arbitrations and he is licensed to practice law in the States of Illinois, California and Florida, although most States allow out-of-state attorneys to prosecute FINRA arbitrations.  Where necessary, Mr. Prossnitz will associate with local counsel. The Prossnitz Law Firm is continuing to file new cases for investors in the former Morgan Keegan income funds and has upcoming hearings scheduled in California, Arizona, Florida, Idaho, and Massachusetts. 

In April 2010, the S.E.C., FINRA and the States of Alabama, Mississippi, Kentucky and South Carolina announced administrative actions involving these funds. The regulatory actions are ongoing. The named Respondents in the regulatory actions include Morgan Keegan and Company. The regulators allege inadequate disclosures of the risks of the income funds, and failure to adhere to announced policies concerning asset valuation.

The RMK Funds have changed names as follows:

RMK High Income Fund (RMH) now Helios High Income Fund (HIH);

RMK Multi-Sector High Income Fund (RHY) now Helios Multi-Sector High Income Fund (HMH);

RMK Advantage Income Fund (RMA) now Helios Advantage Income Fund (HAV); and,

RMK Strategic Income Fund (RSF) now Helios Strategic Income Fund (HSA). 

If you lost $200,000 or more in one of these funds, please contact Howard Prossnitz at 312 960-1800 or email howard@prossnitzlaw.com for a free consultation. Consult the website www.prossnitzlaw.com for more information and to read sample awards.  All claims are filed pursuant to contingent fee agreements. The Prossnitz Law Firm advances costs and FINRA filing fees. 

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 3.79%
$30K home equity loan FICO 4.99%
$75K home equity loan FICO 4.69%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.83%
Cash Back Cards 17.80%
Rewards Cards 17.18%
Source: Bankrate.com