On June 22, 2011 the SEC announced a settlement with Morgan Keegan & Company whereby Morgan Keegan agreed to pay $200 million to settle fraud charges related to subprime mortgage-backed securities. The SEC’s order found that Morgan Keegan failed to employ reasonable pricing procedures and, as a result, did not calculate accurate net asset values for the funds. Even so, Morgan Keegan published the inaccurate daily NAVs and sold shares based on inflated prices according to the SEC Order.
One half of the settlement was paid to states and has been distributed to investors, however the remaining $100 million (paid to the SEC) has yet distributed to investors over two years later. This is according to a press release issued by the Mississippi Secretary of State which has joined several investors in a lawsuit over the issue of the unreleased funds.