SEC Charges Former New York Governor In Microcap Case

Three directors of a startup movie production company, including former New York Democratic Governor David A. Paterson, were charged with violating federal securities laws by failing to timely report their stock transactions while serving on the board. The Securities and Exchange Commission on Friday also charged three company executives with defrauding investors in a purported project to construct the largest movie studio in North America at a suburban location outside Savannah, Georgia. The directors are not alleged to have participated in the fraud. Paterson was fined $25,000 and neither agreed nor denied the findings. An SEC administrative proceeding was instituted against a third director Matthew T. Mellon II, a businessman and former chairman of the New York Republican Party Finance Committee.