Morgan Keegan got hit Wednesday with enforcement actions from both FINRA and the Securities and Exchange Commission over several bond funds that have cost the firm millions of dollars in investor arbitration complaints.

The FINRA complaint alleges that during January 1, 2006 through Dec. 31, 2007, Memphis-based Morgan Keegan used “false and misleading sales materials” when it marketed and sold the seven bond funds to retail investors. The complaint also states that “all of the funds invested heavily in structured products which caused them serious difficulties beginning in early 2007 and led to their collapse later that year, costing investors well over a billion dollars.” The complaint continued, saying: “The sales materials, combined with the firm’s misleading internal guidance and inadequate training, misled its own financial advisors.”

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