On April 7, 2010, FINRA announced that it had filed a complaint against Morgan Keegan & Company seeking a fine, disgorgement of profits and full restitution to customers in connection with the marketing and selling of seven affiliated bond funds to investors. The complaint alleges that the firm used false and misleading sales materials to market the funds and that deficient internal guidance and broker training caused Morgan Keegan’s brokers to make material misrepresentations to investors. FINRA’s complaint also asserts that although Morgan Keegan became aware in early 2007 that problems in the mortgage-backed securities markets were having an adverse and disproportionate effect on these bond funds, the firm neither warned its brokers nor revised its advertising materials to reflect the material risks unique to these securities. From January 1, 2006 through December 31, 2007, Morgan Keegan sold over $2 billion in shares of the bond funds, which invested heavily in structured products including subordinated tranches of asset-backed securities and mortgage-backed securities with sub-prime exposure.