Greenwich, CTA unit of Regions Morgan Keegan has been ordered to pay more than $250,000 to a couple from Florida after the company allegedly invested their entire portfolio in a hedge fund that sent money to Bernard L. Madoff Securities, Reuters reports.
According to the news provider, a Financial Industry Regulatory Authority arbitration panel found that Morgan Keegan did not sufficiently research Greenwich Sentry LP in Connecticut, which served as the feeder for Madoff.
"There is clear and convincing evidence that...Morgan Keegan was grossly negligent in not performing substantial due diligence and as a result it fraudulently misrepresented the risk of this investment," the panel wrote.
The panel ordered the company to repay clients Jeffrey and Marisel Lieberman their $200,000 investment, six percent interest, $50,000 in punitive damages and $14,000 for fees relating to expert witnesses, according to the news source.
An attorney for the Florida couple said that her clients were satisfied with the ruling, adding that they received everything they had asked for, the news source reports.
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