The Law Office of Thomas F. Burke, P.C. Announces Successful Arbitration Against Morgan Keegan and Company

  • Press Release
  • Source: The Law Office of Thomas F. Burke, P.C.
  • On Wednesday June 10, 2009, 12:10 pm EDT

CHICAGO, June 10 /PRNewswire/ -- The Law Office of Thomas F. Burke, P.C. ( announces that he has successfully conducted an arbitration at the Financial Industry Regulatory Authority ("FINRA") in San Francisco, California on behalf of clients that had purchased the Morgan Keegan High Income Fund (RMH) and the Morgan Keegan Multi-Sector High Income Fund (RHY). The Claimants, Gary Fitzgerald and Stephen Fitzgerald, were awarded $267,711 plus interest based on claims of fraud, negligence, breach of fiduciary duty and violations of state statutes. The claims alleged that Morgan Keegan failed to adequately disclose the risks involved with these highly speculative investments and should not have recommended them to the Fitzgerald brothers. In this case, and in many other Morgan Keegan cases, the investors life savings were put into these risky funds.

The bond funds were heavily invested in subordinated tranches of asset backed securities and mortgage backed securities, thereby undercutting Morgan Keegan's claims that the funds were diversified. These type of investments allowed James Kelsoe, the fund manager for the funds, to obtain a high rate of return because of the high risk that was associated with these investments. When the liquidity for these speculative investments dried up, the Morgan Keegan proprietary bond funds incurred huge losses while other bond funds, which had not made similar investments, did not incur the same degree of losses.

There are currently pending hundreds of cases against Morgan Keegan relating to the following bond funds:

RMK High Income Fund (Symbol: RMH)

RMK Multi-Sector High Income Fund (Symbol: RHY)

RMK Advantage Income Fund (Symbol: RMA)

RMK Strategic Income Fund (Symbol: RSF)

Regions MK Select High Income -A (Symbol: MKHIX)

If you have lost money by investing in any of the above Morgan Keegan funds, you are invited to contact The Law Office of Thomas F. Burke, P.C. by telephone at 312/ 362-1300 or email at for a free consultation about an opportunity to recoup your losses.