Mississippians file suit over settlement money - WDAM-TV 7-News, Weather, Sports-Hattiesburg, MS

Mississippians file suit over settlement money

JACKSON, MS (Mississippi News Now) -

Some Mississippi investors are demanding their money back from the federal government, and now, they've filed a lawsuit to get it.

"Put yourself in my shoes. If you'd lost the money I've lost, would that hurt you?" Plaintiff Betty Kilgore asked.

Secretary of State Delbert Hosemann is supporting the lawsuit, filed by attorney Don Barrett on behalf of Kilgore and two other Mississippi investors.

In 2011, following an investigation by the Secretary of State, investment brokerage firm Morgan Keegan agreed to a settlement over fraud charges stemming from the housing collapse.

"The state of Mississippi reached an agreement with Morgan Keegan for $200 million dollars. One hundred million was given to the state to distribute. The other $100 million went to the Security and Exchange Commission Fair Fund, which is a misnomer. That $100 million dollars has never been distributed," Hosemann said. 

Barrett says between 2,000 and 3,000 Mississippians are effected. "They're holding our money. And they've been doing it for years, and it's an outrage. There's no reason for it."

"They should give you your money back and pay interest on it. If we borrowed money we'd have to pay interest and I'm not a bit happy with it," Kilgore said.

The reimbursed money had been in a bond fund, a secure investment for older investors. "In Mississippi, we've had 83 people die without receiving their funds," Hosemann said. "Over 500 people across the country have died without receiving their funds."

Secretary Hosemann says of the 500 people who have died nationwide, every effort will be made to track down their next of kin.

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