A FINRA arbitration panel has ordered Morgan Keegan to pay $1.83 million to a hotel developer in another case involving the firm’s tarnished bond funds.
The three-member panel made the award last Friday, ordering Morgan Keegan to pay the developer, Frank L. Flautt Jr., $1.5 million, his wife Brenda, $246,799, and the Flautt Family Foundation was awarded $69,124. The firm, which is owned by Regions Financial, was also assessed by Morgan Keegan $19,200 for hearing session fees. The panel found Morgan Keegan liable for misrepresentations and omissions, breach of fiduciary duty, unsuitable investments, negligence, failure to supervise, breach of contract and vicarious liability.
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