Were You A Victim?

As an investor in  Regions Morgan Keegan Bond Mutual Funds ("RMK") you may have been told that your money was going toward a safe, conservative investment. In actuality RMK was secretly exposing a significant portion of the funds assets to risky, toxic mortgage-backed securities. The six funds in question all share one thing in common: They are linked into an extremely high concentration of vulnerable securities tied to high-risk sub-prime mortgages, loans and other speculative debt. The six funds are:

• Regions Morgan Keegan Select Intermediate Bond Fund A (MKIBX)
• Regions Morgan Keegan Select Intermediate Bond Fund C (RIBCX)
• Regions Morgan Keegan Select Intermediate Bond Fund I (RIBIX)
• Regions Morgan Keegan Select High Income Fund A (MKHIX)
• Regions Morgan Keegan Select High Income Fund C (RHICX)
• Regions Morgan Keegan Select High Income Fund I (RHIIX)

Investors were told that they were investing in a portfolio of relatively conservative corporate bonds and preferred stocks. The RMK prospectuses appeared to back up those claims. What RMK's literature did not reveal was the true level of credit risk involved was a result of the fund managers purchases of high-risk, low priority tranches of collateralized debt obligations (CDOs). Morgan Keegan claimed the losses were caused by the housing meltdown and a "flight to quality". In actuality the losses can be attributed to the high-risk nature of the CDOs, the collateralized mortgage obligations (CMOs) and asset based securities (ABS) held in the funds' portfolio.

Investors in RMK bonds were exposed to as much as 10 times the credit risk of the underlying, already risky, debt in exchange for 1-2% higher returns than a diversified, transparent, high-yield bond portfolio would have earned. These six RMK funds plummeted more than 60% on average in value in 1 year with investors across the country losing as much as $2-billion. Similar bond funds posted positive returns or modest losses.

Typically RMK investors were retirees, families saving for their childrens' education, small businesses, corporations, pension funds, charities and foundations. If you were exposed to these highly risky, toxic debt products you can call a Charlip Law Group securities attorney to advise you of your legal rights.

At Charlip Law Group, LC our attorneys will represent your matters with the full consideration and respect you deserve. The lawyers at our firm bring many years of training and experience to the practice of law. Our multi-lingual staff will deal with your issues promptly. We are conveniently located in Broward County. Our South Florida location allows us to serve our clients in Miami-Dade, Broward and Palm Beach Counties; throughout Florida and the United States. Contact Charlip Law Group, LC at our Hollywood, Florida offices toll-free at 1-800-773-1955 or 954-921-2131. You can send us a confidential email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .