Stifel adviser, an ex-NY governor, pays SEC $25K for reporting failure
(Bloomberg) -- Former New York Gov. David A. Paterson, who is currently an adviser at Stifel, was among those charged with violating securities laws in connection with a proposal to build the largest movie studio in North America.
Paterson, 62, agreed to pay $25,000 to the SEC to settle the allegations, the regulator said Friday in a statement. Paterson, a Democrat, became governor in 2008, when Eliot Spitzer resigned after he was caught patronizing a prostitution ring.
In July, Stifel said it hired Paterson as a financial adviser. He joined a team that includes former NY Jets wide receiver Wayne Chrebet, and which oversees about $2 billion in client assets.
As On Wall Street previously reported, Paterson's BrokerCheck record included a note about an SEC investigation.
"I have been notified by the SEC that, in connection with a board appointment I received, certain stock grants given me were not timely reported to the SEC," Paterson says, according to a short note on his BrokerCheck record.
A Stifel spokesman could not be reached for immediate comment.
The SEC alleged that Paterson and two other directors failed to file timely stock-transaction reports tied to the construction of the studio near Savannah, Georgia. Music producer Charles A. Koppelman and Matthew T. Mellon II, former chairman of the New York Republican Party Finance Committee, were also charged, according to the statement.
“Koppelman, Paterson and Mellon allegedly failed in their personal responsibility to comply with the beneficial ownership reporting requirements of the federal securities laws," the SEC said in the statement.
Paterson’s attorney, Michael Ference, didn’t immediately return a phone call seeking comment.
Manu Kumaran, founder and chief executive officer of Moon River Studios, was charged with defrauding investors after allegedly spending shareholder money on globetrotting travel and personal expenses, the SEC said. He also made false statements in press releases and company filings about the pace of the studio’s development, the regulator said.
“They allegedly claimed that construction was underway and projected dates by which the studio would be operational while knowing full well they did not have anywhere near sufficient funding to begin building,” according to the statement.
--With additional reporting from Andrew Welsch of On Wall Street.