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Fri November 29, 2013
Lawsuit seeks $30 million in failed Mamtek plant
A new lawsuit is seeking $30 million from an investment banking firm and 10 employees because of a failed factory project in central Missouri.
Morgan Keegan, which has merged with Raymond James Financial Inc., was the underwriter in 2010 for a $39 million bond issue for a failed artificial sweetener factory for Mamtek US Inc. in Moberly. Construction on the factory stopped in August 2011 when Mamtek failed to make a required bond payment.
The Columbia Daily Tribune reports the new lawsuit was filed Wednesday in Boone County because $5.6 million worth of the bonds, in default since 2011, were sold there.
A Raymond James spokesman says the company denies wrongdoing, and the state reviewed the project before the city agreed to issue bonds before Morgan Keegan was hired.