Banking firm settles with state over failed Missouri plant

COLUMBIA, Mo. (AP) -- Missouri's secretary of state says an investment banker will pay $850,000 as the last settlement involving lawsuits over bonding for a failed Mamtek sweetener factory.

Jason Kander announced the consent decree Monday involving Tennessee-based Morgan Keegan & Co. That bond underwriter for the Moberly project was accused in Boone County of securities fraud.

In 2010, the city of Moberly issued $39 million in bonds to finance construction of the Mamtek artificial sweetener plant. Morgan Keegan helped Moberly prepare its bond offering and sold the bonds for profit to the public.

The plant was touted as an economic boon for the north-central Missouri town until Mamtek defaulted on bond payments in 2011.

Kander sued in 2013, alleging the fraud by Morgan Keegan.

Morgan Keegan admits no wrongdoing under the consent decree.