WASHINGTON — Brokerage firm Morgan Keegan & Co. Inc. on June 22 agreed to pay $210 million to settle fraud charges brought by the U.S. Securities and Exchange Commission, state regulators, and the Financial Industry Regulatory Authority.

The Memphis, Tenn., firm and two of its employees were charged with causing the false valuation of subprime mortgage-backed securities in five funds in 2007. The SEC found Morgan Keegan “failed to employ reasonable pricing procedures and consequently did not calculate accurate ‘net asset values’ for the funds.”

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