There are a number of elements of the Morgan Keegan mutual fund fiasco that are plain outrageous. Start with making up prices for securities in a number of Morgan Keegan’s mutual funds. Continue with those made up prices often coming from the manager of the funds himself.
Yes, lying to investors is downright criminal and its good to see regulators from FINRA to the Securities and Exchange Commission go after the people involved. But to me, what is more troubling is an allegation put forth by four state regulators who also investigated what was going on with these funds – that the managers of these funds often bought securities that they never bothered to attempt to understand.