The guess here is that former New York Governor David A. Paterson regrets ever becoming involved with Moon River Studios, a microcap company whose executives have just been charged with defrauding investors in a supposed project to construct a movie studio in Georgia. Paterson, a director in the company, was separately charged with failing to report his stock transactions in the company, and will pay $25,000 to settle the matter. Two other directors were charged with the same offense.
As for the movie studio exec’s, based on the SEC press release, it sounds as though there wasn’t much of a studio at all. The SEC charged that both the former and successor CEO of the company made false statements that the studio — purported to be the largest movie studio in North America – was under construction with projected completion dates when the exec’s knew there weren’t nearly enough funds to even begin construction, that they backdated promissory notes as part of a scheme to issue common stock in exchange for financing and that they used company funds to support lavish lifestyles in the process.
It appears that, for now, Moon River will not be making any movie magic in the near future. The SEC press release announcing the charges is at the link below:
Jeff Petersen is an attorney licensed in California and Illinois representing clients in a wide variety of SEC enforcement proceedings. He can be reached in California at 858.792.3666 and in Illinois at 312.583.7488.