Missouri Secretary of State Jason Kander is taking action against a financial management company connected to the failed Mamtek artificial sweetener plant in mid-Missouri.
Kander said Mamtek raised $39 million from a bond sale, based largely on false claims.
“Morgan Keegan also told investors that it already had a factory up and running in China, producing the same product, when in fact there is no evidence that such a factor ever produced or sold sucralose at the time of the offering,” Kander said.
Kander is accusing the investment firm Morgan Keegan & Company, of not vetting Mamtek’s operation before selling its bonds to investors.
“My office has issued a cease and desist order against Morgan Keegan that prevents them from omitting material facts when selling bonds and from failing to adequately investigate bond offerings,” Kander said. “We are also seeking full restitution for anyone who lost money on this deal, as well as civil penalties, fees and costs.”
Kander says Missouri investors lost $6.6 million on the project.
Morgan Keegan, now a division of Raymond James Financial Inc., underwrote the bonds for the Mamtek project. Messages seeking comment from the company were not immediately returned.