Morgan Keegan Co., a former Regions Financial Corp. subsidiary, has agreed to pay more than $600,000 to settle claims it steered pension plans it advises into investing in hedge funds from which it received kickbacks. Morgan Keegan will pay $633,715 to the ten plans following an investigation by the Employee Benefits Security Administration which found the company violated federal law when it recommended the investments.
According to the Labor Department, the hedge funds paid Morgan Keegan “revenue-sharing and other fees.” The violations happened between 2001 and 2008. Morgan Keegan, based in Memphis, was the brokerage and investment banking arm of Regions Financial. As you may know, Morgan Keegan was bought this year by Tampa’s Raymond James Financial for $1.2 billion.
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