Mo. Sec. of State to announce ‘major securities action’ against Mamtek

Mo. Sec. of State to announce ‘major securities action’ against Mamtek

Bruce Cole was charged Tuesday with theft and securities fraud in Missouri for using bond revenues to avoid foreclosure on his Beverly Hills, Calif., home and for failing to tell the truth about the company’s troubled operations.

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Associated Press

Posted on April 4, 2013 at 10:00 AM

ST. LOUIS—The Missouri Secretary of State’s office is taking action against a financial management company connected to the failed Mamtek artificial sweetener plant in mid-Missouri.

Secretary of State Jason Kander on Thursday will announce a cease-and-desist order against Morgan Keegan & Co. Inc.. Kander says Missouri taxpayers lost $6.5 million in the failed plant near Moberly. He seeks restitution, civil penalties, fees and costs.

Morgan Keegan, now a division of Raymond James Financial Inc., underwrote the Moberly, Mo., bonds for the Mamtek project. Messages seeking comment from the company were not immediately returned.

Criminal charges were filed last month against former Mamtek CEO Bruce Cole. He is accused of perpetrating fraud by persuading Moberly to issue $39 million in bonds and the state to authorize up to $17 million in incentives.

 

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