Those Fined By SEC In Microcap Fraud Case Include Former NY Governor, Record Exec Who Signed Vanilla Ice

The Securities and Exchange Commission has charged former New York Democratic Governor David Paterson and music producer Charles Koppelman for violating securities laws in relation to Microcap fraud.

Both agreed to pay $25,000 each as penalties to settle the charges against them without admitting or denying the findings. The Commission also ordered an administrative proceeding against Matthew Mellon II, a businessman and former chairman of the New York Republican Party Finance Committee.

The SEC alleged three of them for failing to report their stock transactions as company directors.

"Koppelman, Paterson, and Mellon allegedly failed in their personal responsibility to comply with the beneficial ownership reporting requirements of the federal securities laws," Walter Jospin, Director of the SEC's Atlanta Regional Office, said in a press release.

Koppelman, who is currently CEO of CAK Entertainment, has held various executive positions at EMI and Steve Madden, and he is former Chairman of Martha Stewart Living Omnimedia. Paterson was the 55th Governor of New York, in office from 2008 to 2010. He was also the first African American governor of New York.

Earlier, the SEC charged Manu Kumaran, Jake Shapiro and Roger Miguel for defrauding investors in a purported project to construct the largest movie studio in North America at a suburban location outside Savannah, Georgia.

They allegedly claimed that construction was underway and projected dates by which the studio would be operational despite fully aware that they didn't have sufficient funds to begin building the touted "Studioplex."

In addition, Kumaran, Shapiro, and Miguel are alleged to have backdated and falsified promissory notes as part of a scheme to issue common stock in exchange for financing.