CHICAGO (CN) – Former NBA player Horace Grant won a $1.46 million arbitration award against Morgan Keegan & Co. after he claimed the firm misrepresented the risk levels of the bonds it sold him.
Grant sought more than $1.5 million from the company in his March 2008 complaint filed with the Financial Industry Regulatory Authority, The Associated Press reported. FINRA is a private, self-regulatory organization.
The funds in question were invested in “collaterized debt organizations” which are tied to residential mortgages. Values dropped when the sub-prime mortgage market fell, the AP reported.
Grant’s attorney, Andrew Stoltmann, told the AP that the mutual funds lost 90 percent of their value in the year after the housing market fell in 2007.
Grant is a four-time NBA champion who played for the Chicago Bulls, the Orlando Magic and the Los Angeles Lakers.