CHICAGO — Missouri Secretary of State Jason Kander issued a cease-and-desist order Thursday against the former Morgan Keegan & Co. for alleged securities fraud in its role as underwriter of $39 million of defaulted bonds issued by the city of Moberly that is seeking restitution for in-state investors.

The proposed order, if it becomes final, calls for full restitution for 33 Missouri investors who purchased $6.5 million of the bonds. Kander’s Securities Division issued the order against the firm, which merged with Raymond James Financial in April 2012 and now operates as Raymond James. The firm responded to the action, denying it was responsible for investor losses and vowed to fight the allegations.

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