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Regions Brokerage Firm Hit with Almost $700,000 Verdict

Globe Newswire, May 11, 2009

A Birmingham, Alabama FINRA arbitration panel last Friday awarded two Alabama residents their full losses, attorney fees, statutory interest and costs in an arbitration award of almost $700,000. The arbitration claim centered around purchases of Regions Financial Corp.’s (RF) brokerage firm subsidiary Morgan Keegan’s proprietary bond funds managed by James C. Kelsoe.

The award was the second largest nationally against Morgan Keegan arising out of the meltdown of the firm’s bond funds. According to attorney Andrew Stoltmann, who represented the investors in the arbitration claim, “The awarding of almost $700,000 in a claim where the principal losses were about $455,000 is a crystal clear message sent to Morgan Keegan that the arbitrators were repulsed by the firm’s derivative laced mutual funds and the actions of the firm.”

The client’s net losses were $302,989. The principal losses were $455,669. The Panel awarded the Claimants $455,669 in compensatory damages, $151,738 in attorney fees, $62,882 in statutory interest, and $12,500 in expenses. The case, heard in Birmingham, Alabama, is captioned Edward King and Roderick King v. Morgan Keegan & Company, Inc. (Case Number 08-00336).

According to the investors’ attorney, Andrew Stoltmann, “This ‘make whole’ arbitration award, granting of losses, attorney fees, interest and costs, affirms our view that Morgan Keegan clearly took advantage of thousands of unsuspecting investors nationally. These funds contained extraordinarily risky derivatives that were unsuitable and inappropriate for virtually any investor, much less retirees who didn’t want to gamble. In fact, it was established at hearing that Morgan Keegan portrayed these funds as safe, conservative and appropriate for clients with an investment objective of capital preservation. The funds were anything but safe and secure.”

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Working with Joe was an absolute pleasure considering the unfortunate situation I was dealing with! He’s very knowledgeable and easy to communicate with. He kept me informed in all aspects of my case in a timely manner. Whenever I contacted him with a question he responded quickly. His expertise came through for me! I would highly recommend him! Joanne
I hired Joe and his firm Stoltmann Law office to represent me in a case where my investment guy had lost a substantial amount of money in my account. He invested in some very speculative energy stocks which should not have been in my portfolio due to my request for a very conservative investment portfolio. I was very impressed and satisfied with the representation and negotiations on my behalf by Joe and Stoltmann Law offices and I would definitely recommend them to anyone who would be in need of a very fine firm. Anonymous
Never having a need to file suit against anyone, let alone a major multi-national brokerage firm, I was at a loss to find a legal firm to assist me. After much searching, I found Stoltmann Law Offices, PC. They were very diligent and professional in the handling of my case and I am glad that I retained their services. I would definitely refer them to anyone seeking similar help. Donald F.