Violations Alleged
•
Sec 17(a) (Not specified)
•
Section 34(b) Investment Company Act; Sections 206(1), (2) & (4) Investment Advisors Act; Rule 206(4)-7 Investment Advisors Act
Additionally,
Joseph Thompson Weller is alleged to have aided and abetted Morgan Asset Management, Inc.'s violation of Sec 10(b) + Rule 10b-5 of the Exchange Act (willfully/knowingly).
Joseph Thompson Weller is alleged to have caused Morgan Asset Management, Inc.'s violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
James C. Kelsoe, Jr. is alleged to have aided and abetted Morgan Asset Management, Inc.'s violation of Sec 10(b) + Rule 10b-5 of the Exchange Act (willfully/knowingly).
James C. Kelsoe, Jr. is alleged to have caused Morgan Asset Management, Inc.'s violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
Morgan Keegan & Company, Inc. is alleged to have aided and abetted Morgan Asset Management, Inc.'s violation of Section 206(1), 206(2) Advisers Act; Section 34(b) Investment Company Act (willfully/knowingly).
Morgan Keegan & Company, Inc. is alleged to have caused Morgan Asset Management, Inc.'s violation of Section 206(1), 206(2) Advisers Act; Section 34(b) Investment Company Act.
James C. Kelsoe, Jr. is alleged to have aided and abetted Morgan Asset Management, Inc.'s violation of Section 206(1), 206(2), 206(4), Rule 206(4)-7 Advisers Act (willfully/knowingly).
James C. Kelsoe, Jr. is alleged to have caused Morgan Asset Management, Inc.'s violation of Section 206(1), 206(2), 206(4), Rule 206(4)-7 Advisers Act.
Related Violations Alleged
Morgan Asset Management, Inc. is alleged to have aided and abetted
Morgan Keegan & Company, Inc.'s violation of Rule 22c-1 Investment Company Act (willfully/knowingly).
Morgan Asset Management, Inc. is alleged to have aided and abetted an unidentified individual or entity's violation of Rule 38a-1 Investment Company Act (willfully/knowingly).
Morgan Asset Management, Inc. is alleged to have caused an unidentified individual or entity's violation of Rule 38a-1 Investment Company Act.
Morgan Asset Management, Inc. is alleged to have aided and abetted Helios Select Fund, Inc.'s violation of Rule 38a-1 Investment Company Act (willfully/knowingly).
Morgan Asset Management, Inc. is alleged to have aided and abetted Helios High Income Fund, Inc.'s violation of Rule 38a-1 Investment Company Act (willfully/knowingly).
Morgan Asset Management, Inc. is alleged to have aided and abetted Helios Multi-Sector High Income Fund, Inc.'s violation of Rule 38a-1 Investment Company Act (willfully/knowingly).
Morgan Asset Management, Inc. is alleged to have aided and abetted Helios Strategic Income Fund, Inc.'s violation of Rule 38a-1 Investment Company Act (willfully/knowingly).
Morgan Asset Management, Inc. is alleged to have aided and abetted Helios Advantage Income Fund, Inc.'s violation of Rule 38a-1 Investment Company Act (willfully/knowingly).
Morgan Asset Management, Inc. is alleged to have caused Helios Select Fund, Inc.'s violation of Rule 38a-1 Investment Company Act.
Morgan Asset Management, Inc. is alleged to have caused Helios High Income Fund, Inc.'s violation of Rule 38a-1 Investment Company Act.
Morgan Asset Management, Inc. is alleged to have caused Helios Multi-Sector High Income Fund, Inc.'s violation of Rule 38a-1 Investment Company Act.
Morgan Asset Management, Inc. is alleged to have caused Helios Strategic Income Fund, Inc.'s violation of Rule 38a-1 Investment Company Act.
Morgan Asset Management, Inc. is alleged to have caused Helios Advantage Income Fund, Inc.'s violation of Rule 38a-1 Investment Company Act.
Related Documents:
33-9116
07-Apr-2010
Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Sections 4C, 15(b) And 21C of the Securities Exchange Act of 1934, Sections 9(b) and 9(f) of the Investment Company Act of 1940, Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940 and Rule 102(e)(1)(iii) of the Commission's Rules of Practice
On April 7, 2010, the SEC instituted administrative and cease and desist proceedings against Morgan Asset Management, together with Morgan Keegan & Company and two individual defendants. The SEC alleged that Morgan Asset Management engaged in fraud when it materially inflated the daily net asset value for several mutual funds that Morgan Asset managed. In particular, the SEC alleged that Morgan Asset Management "fraudulently forestalled declines in the NAVs of the funds that would have occurred as a result of the deteriorating market" for securities backed by subprime mortgages in 2007.
2010-53
07-Apr-2010
Press Release--Administrative Proceeding
SEC Charges Morgan Keegan and Two Employees With Fraud Related to Subprime Mortgages
On April 7, 2010, the SEC instituted administrative proceedings against Morgan Asset Management, Morgan Keegan & Company, and two employees accused of fraudulently overstating the value of securities backed by subprime mortgages. According to the Commission, "Morgan Keegan failed to employ reasonable procedures to internally price the portfolio securities in five funds managed by Morgan Asset, and consequently did not calculate accurate 'net asset values' (NAVs) for the funds."
Order Declining to Issue Five Subpoenas
On July 6, 2010, Administrative Law Judge, James T. Kelly, declined to approve five subpoenas requested by The Division of Enforcement.
Order Addressing Issues Under Rule of Practice 230(G)
On July 12, 2010, Administrative Law Judge, Tames T. Kelly, issued an Order Addressing Issues Under Rule of Practice 230(G).
Order Denying Motion to Disqualify Attorneys for Respondents
On July 19, 2010, Administrative Law Judge, James T. Kelly, Ordered that the Division of Enforcement's motion to disqualify Sutherland, Asbill & Brennan, LLP, as counsel for Respondents is denied.
Order Granting in Part and Denying in Part Motion to Quash Subpoena
On July 20, 2010, Administrative Law Judge, James T. Kelly, issued an order regarding the Commission's Office of Compliance Inspections and Examinations' motion to quash the subpoena duces tecum served by the respondents. According to the order, the motion is granted in part and denied in part.
Order Denying Reconsideration, Certification, and a Stay
On August 3, 2010, Administrative Law Judge, James T. Kelly, Issued an Order Denying Reconsideration, Certification, and Stay.
Order Addressing the Division of Enforcement's Renewed Motion in Limine
On September 7, 2010, Administrative Law Judge, James, T. Kelly, denied the Division of Enforcement's renewed motion in limine, seeking to "exclude the direct written testimony of proposed witnesses Lendez and Mercer in advance of the hearing."
Order Amending July 12, 2010, Order Addressing Issues Under Rule of Practice 230(G)
On November 17, 2010, Administrative Law Judge Robert G. Mahoney in part denied and in part approved modifications to an earlier July 12, 2010 order that addressed the Commission's Rules of Practice in Rule 230(g). The July 12, 2010 Order was at issue, among other reasons, because: "The Division argues that the July 12th Order requires the Division to provide any evidence obtained from Investigation No. A-3211 to Respondents and allows them to use it, but prohibits the Division from doing the same, creating a disadvantage for it and practical problems at the hearing." Under the November 17, 2010 Order, the earlier July 12, 2010 order was modified to provide that: "If Respondents introduce in evidence in this hearing any documents or transcripts from Investigation No. A-3211, the Division may request leave to use documents and testimony from Investigation No. A-3211 for the limited purpose of rebutting the evidence introduced by Respondents."
Protective Order
On February 10, 2011, Administrative Law Judge, Robert G. Mahony, issued a Protective Order in this matter in order to "expedite the identification of documents that may be relevant to Respondents' defense and to ensure appropriate protections pursuant to 17 C.F.R. § 201.322".
Order on Respondents' Motion to Compel
On March 17, 2011, Administrative Law Judge Robert G. Mahony issued an Order on Respondents' Motion to Compel. Pursuant to the Order, the Motion to Compel was granted in part and denied in part.
34-64720
22-Jun-2011
Administrative Proceeding
Corrected Order Making Findings and Imposing Remedial Sanctions and a Cease-and-Desist Order Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Sections 203(e), 203(f) and 203(k) of the Investment Advisers Act of 1940, and Sections 9(b) and 9(f) of the Investment Company Act of 1940, and Imposing Suspension Pursuant to Section 4C of the Securities Exchange Act of 1934 and Rule 102(e)(1)(iii) of the Commission's Rules of Practice
On June 22, 2011, the SEC filed an order making findings and imposing sanctions on Morgan Asset Management, Inc. Morgan Asset submitted a settlement offer that the Commission accepted. As a part of the settlement offer, Morgan Asset will cease and desist from securities violations, as well as pay a portion of disgorgement, pre-judgment interest and a civil penalty.
34-64917
19-Jul-2011
Administrative Proceeding
Order Appointing Tax Administrator
On July 19, 2011 the SEC issued an Order Appointing Tax Administrator. The Order appointed Damask and Associates LLP, a certified public accounting firm located in Half Moon Bay, California, as tax administrator for the Qualified Settlement Fund in the administrative proceeding.
34-65227
30-Aug-2011
Administrative Proceeding
Order Appointing Fund Administrator
On August 30, 2011, the SEC entered an Order Appointing Fund Administrator. Under the Order, A.B. Data, Ltd. was appointed as the Fund Administrator.
34-65919
08-Dec-2011
Administrative Proceeding
Order Granting Extension of Time to Submit Proposed Plan of Distribution
On December 8, 2011, the Commission granted the SEC Division of Enforcement's request for "an extension of time until September 5, 2012, to submit a proposed Plan of Distribution" pursuant to Rule 1101(a) of the SEC's Rules on Fair Fund and Disgorgement Plans.
Proposed Plan of Distribution
On April 3, 2013, the SEC announced that the SEC Division of Enforcement submitted a Proposed Plan of Distribution to the Commission. The Plan of Distribution proposes a distribution of funds paid by Morgan Asset Management, Inc., Morgan Keegan & Co., Inc., James C. Kelsoe, Jr., and Joseph Thompson Weller, CPA, "as a result of Respondents' fraudulent valuation of certain subprime mortgage-backed securities in the portfolios of five (5) funds managed by Morgan..., pursuant to a Commission order issued on June 22, 2011."
34-70016
22-Jul-2013
Administrative Proceeding
Extension Order
On July 22, 2013, the Commission granted the Division of Enforcement's request for an extension of time for the "entry of an order approving or disapproving the proposed Plan of Distribution that was noticed for public comment on April 3, 2013." According to the SEC: "Due to the complexity of the comments [on the proposed Plan of Distribution] received, the Division believes that further evaluation, analysis and consultation with other offices are required to properly address the comments submitted to the Commission."
34-70222
16-Aug-2013
Administrative Proceeding
Order Approving Modified Plan and Setting Fund Administrator Bond Amount
On August 16, 2013, the SEC issued an Order Approving Modified Plan and Setting Fund Administrator Bond Amount. Under the Order, the fund administrator, A.B. Data, obtained a bond in the approved amount of $100,300,000.
34-72599
11-Jul-2014
Administrative Proceeding
Order Directing Disbursement of Fair Fund
On July 11, 2014, the SEC ordered "that the Commission staff shall transfer $100,398,383.91 from the Morgan Asset Fair Fund to Huntington Bank, and that the Fund Administrator shall distribute such monies to investors as provided for in the Modified Plan."
34-78541
11-Aug-2016
Administrative Proceeding
Second Order Directing Disbursement of Fair Fund
On August 11, 2016 the SEC published an order directing the disbursement of $301,092 from the Fair Fund to 28 eligible claimants.
34-80048
15-Feb-2017
Administrative Proceeding
Order Setting Fund Administrator's Bond Amount
The Commission stated that "on August 30, 2011, the Commission issued an order appointing A.B. Data, Ltd. as the fund administrator in this matter." "In accordance with Rule 1105(c) of the Commission's Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1105(c), it is hereby ORDERED that the bond amount required for A.B. Data, Ltd. going forward is $162,000."
Notice of Name Change of Appointed Tax Administrator
On June 30, 2017, the SEC announced a Name Change of Appointed Tax Administrator, and amended the Omnibus Order, beginning June 2017 and for calendar year 2018, to replace all references to Damasco with "Miller Kaplan Arase LLP which acquired Damasco & Associates LLP" in order to reflect Damasco's name change.
34-86602
08-Aug-2019
Administrative Proceeding
Order Authorizing the Transfer to U.S. Treasury of the Remaining Funds and Any Funds Returned to the Fair Fund in the Future, Discharging the Fund Administrator, Canceling Fund Administrator's Bond, and Terminating the Fair Fund
The SEC stated: "[I]t is ORDERED that: A. The remaining Fair Fund balance of $171,387.07 and any funds returned to the Fair Fund in the future, shall be transferred to the U.S. Treasury...; B. The Fund Administrator, A.B. Data, Ltd., is discharged; C. The Fund Administrator's bond is canceled; and D. The Fair Fund is terminated."
