COLUMBIA, Mo. (AP) — 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 Incorporated in Moberly. Construction on the factory stopped in August 2011 when Mamtek failed to make a required bond payment.
The Columbia Daily Tribune reports 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.
JEFFERSON CITY, Mo. (AP) - Missouri prosecutors want a judge to let them keep closer tabs on the former head of a failed artificial sweetener plant in Moberly.
Attorney General Chris Koster's office said Thursday it has filed a motion in St. Charles County Circuit Court seeking to monitor ex-Mamtek CEO Bruce Cole with a wearable GPS device.
Cole is under house arrest in his home state of California awaiting a Missouri trial on felony fraud and forgery charges. His bond was reduced from $500,000 to $100,000 in March.
The Mamtek project was financed with $39 million in bonds issued by the city of Moberly's Industrial Development Authority. The project collapsed after Cole's company missed a bond payment in August 2011.
A hearing is scheduled Monday on a change of venue from Randolph County.