Morgan Keegan Fined $558,807 for Late Trading

The Securities and Exchange Commission has fined Memphis-based Morgan Keegan $558,807 for allowing late trading to a hedge fund.

In 2003, Keegan executed approximately 90 late trades, according to the SEC.

A total of $418,835 must be paid in disgorgement, $39,972 in interest and a $100,000 civil penalty.

The SEC did not name the hedge fund involved.

Late trading is placing orders to buy mutual fund shares after the fund has already calculated its NAV

"In September 2003, Morgan Keegan implemented additional procedures and controls to prohibit the entry of any mutual fund order received after (3 p.m.)," the company statement said