MGM-Pathe Communications confirmed Monday that the Securities and Exchange Commission is investigating its parent company's dealings during the reign of financier Giancarlo Parretti.
The existence of the probe was confirmed in an abbreviated annual report filed by MGM-Pathe Communications Co., a unit of Pathe Communications Corp., which is the company under investigation. MGM-Pathe said its complete annual report would be delayed for up to 15 days.
"The SEC is currently conducting an investigation into certain transactions effected by prior management of Pathe," says the annual report.
MGM-Pathe said it was "cooperating fully with the SEC in its investigation, and current management is investigating many of the same transactions to determine what remedies may be available."
Dennis C. Stanfill, who early this year was named co-chairman and co-chief executive officer of MGM-Pathe, said the investigation involves only transactions for which Parretti's management team was responsible.
Parretti, stripped of control of MGM-Pathe in December, is in Italy and could not be reached for comment.
Susan Suchil, a lawyer for MGM-Pathe, said the SEC probe began in fall, 1990. Based in part on the types of documents subpoenaed by the SEC, Suchil said she believes the investigation centers on Pathe transactions during the period of 1988 to 1990.
Parretti merged that company with the MGM studio in November, 1990.