Arbitration panel finds for Horace Grant
A brokerage firm has been ordered to pay former Chicago Bulls player Horace Grant $1.46 million for his mutual fund losses, his lawyer said.
The Financial Industry Regulatory Authority found Morgan Keegan & Co., responsible for losses Grant experienced after initially investing about $3 million with the brokerage firm eight years ago, Andrew Stoltmann, Grant’s lawyer, told the Chicago Tribune in a story published Tuesday.
The firm, based in Memphis, sold Grant four high-yield bonds with more risk in them than he was told, Stoltmann said, adding the bonds had been marketed as conservative investments appropriate for retirees.
In 2004, the bonds dropped by an average of 58 percent with similar bonds losing 6.9 percent that year, said Grant’s complaint to the arbitration panel, which did not give its reasons for finding in his favor.
In a statement, Morgan Keegan said
arbitration cases turn on their individual facts and we don’t agree with the outcome.
Grant played with the Bulls from 1987 to 1994 when they won three NBA championships, the Orlando Magic and the Los Angeles Lakers before retiring in 2004.