MEMPHIS, Tenn. (AP, abc24.com) - Memphis, Tenn.-based brokerage company Morgan Keegan will pay more than $630,000 to 10 pension plans after the Department of Labor said the company violated federal law for taking incentives to steer clients to certain investments.
The Labor Department's Employee Benefits Security Administration said in a news release on Monday that an investigation found that the company recommended certain hedge funds of funds to pension plan clients that also paid Morgan Keegan revenue-sharing and other fees.
The violations occurred between April 2001 and November 2008.
In addition to paying money back to the pension plans, the company also agreed to disclose to clients all compensation and fees received involving investment or transactions related to them. The company will also refund any commissions collected from third parties.