JEFFERSON CITY, MO (KMOX) - Saying Missouri investors wouldn’t have lost $6.5 million dollars if the company had “done its due diligence,” Missouri Secretary of State Jason Kander is going after the Memphis-based investment firm involved in the failed Mamtek plant in Moberly, Missouri.
In a cease-and-desist order and filing with his office’s Securities Commission, Kander is seeking restitution and civil penalties from investment company Morgan Keegan which is now a subsidiary of Raymond James Financial Inc.
Kander says Morgan Keegan told investors that the bonds for the plant were secured by Mamtek’s patents when the company didn’t have any patents.
“In fact, the principle patent application supporting Mamtek’s sucralose process was initially denied in 2008 and finally denied in 2010, two months before Morgan Keegan began selling the bonds,” Kander said.
Kander says Morgan Keegan also told investors Mamtek already had a sucralose factory in China when there was no evidence it existed. He says Morgan-Keegan made $2.5 million on the deal.
“The Mamtek project doesn’t survive a rudimentary investigation and Morgan Keegan was hired by Moberly to conduct the investigation and to vet the investment,” Kander explained.