EFFINGHAM CO., GA (WTOC) - The Securities and Exchange Commission filed a lawsuit against Medient Studios on Friday.
The suit names Medient Studios, Fonu2, former Medient and current Fonu2 chariman Joel "Jake" Shapiro, Medient CEO and Chairman Manu Kumaran and current Fonu2 CEO Roger Miguel.
According to the suit, the defendants made numerous false statements in Medient press releases and public filings and backdated and falsified purported Medient and Fonu2 company promissory notes, all while issuing billions of shares of the companies' common stock at significant discounts to third-party microcap financing companies.
Those companies then dumped their stock into public markets. The SEC alleges that as a result, Medient, Shapiro and Kumaran all benefitted financially as a result of the transactions with third-party microcap financing companies.
The suit also alleges that the defendants committed an assortment of reporting and securities registration violations between 2013 and 2015, including failure to properly report unregistered sales of equity securities, failing to report the transactions in which Medient transferred substantially all of its assets to Fonu2 and failing to properly report the resignation of certain Medient officers and directors.
Between 2012 and 2015, Medient, later renamed Moon River Studios, purported to be a movie and video game producer while also claimed to be building the largest movie studio in North America, the "Studioplex", on a 1,560-acre parcel of land in Effingham County.
After failing to release a single movie or video game as a public company and with no construction started on the Studioplex, Medient announced that it was shutting its doors and transferred all of its assets to Fonu2, Inc.
You can read the entire lawsuit below: