State of Missouri Settles Lawsuit Over Moberly Mamtek Project

Feb 9, 2016

Credit Secretary of State's Office / State of Missouri

A settlement has been reached between the state of Missouri and the bond underwriter who worked with the City of Moberly on its Mamtek project.  

Morgan Keegan agreed to pay $850,000 to the state to cover the costs of investigation into civil securities fraud charges.  Kander’s Director of Communications Stephanie Fleming said the settlement sends a message.

“Secretary Kander and the Securities division will continue to go after anyone whether it’s an individual or a corporation that fails to adequately disclose the risks of stocks and bonds before their clients invest," Fleming said.

Morgan Keegan representatives would not comment.  The settlement in the Boone County Circuit Court was the last of six agreements.  It frees Morgan Keegan of any further liability with the failed Moberly factory.

Morgan Keegan helped sell $39 million worth of Moberly City Bonds in 2010 to help build the Mamtek sucralose factory.  The project failed in September 2011. Lawsuits were filed against Morgan Keegan due to its misrepresentation of Mamtek bond security.