Morgan Keegan Settles with Secretary of State

Morgan Keegan’s settlement with the Secretary of State, ends liability in the Mamtek factory case.

The bond underwriter for Moberly’s failed Mamtek factory project, agreed yesterday to pay $850,000 to settle civil securities fraud charges, ending the lawsuit asking the company to reimburse investors. Secretary of State Jason Kander revealed the settlement yesterday after attorneys for Morgan Keegan and the Missouri Securities Division filed a consent decree. It states that “Under the settlement, Morgan Keegan will pay $750,000 to the state general revenue fund and $100,000 to Kander’s office to reimburse it for the cost of the investigation.

Governor Jay Nixon announced in July 2010 that Mamtek’s plant would bring 600 jobs to Moberly. Missouri lawmakers authorized up to $17.6 million in tax credits and other incentives for the plant, and the Moberly Industrial Development Authority agreed to issue $39 million in bonds in 2010 to pay for the plant’s construction. Morgan Keegan bought the bonds as the underwriter and sold them to investors. But plans for the plant disintegrated after Mamtek failed to make a $3.2 million bond payment, and the partially built factory was abandoned.

Kander says Morgan Keegan separately has settled with Mamtek investors.