Dyne
05-16-2006, 05:14 PM
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http://money.cnn.com/2006/05/16/technology/infinium/index.htm
NEW YORK (CNNMoney.com) - The former CEO of a Seattle-based video game company has been charged with artificially inflating his company's stock price while he sold personal shares, commonly referred to as a pump and dump scheme.
The Securities and Exchange Commission on Tuesday accused Timothy Roberts of hiring a promoter to send junk faxes to tens of thousands of investors across the country, making it appear Infinium Labs was on the verge of launching a new gaming system, dubbed "The Phantom." Infinium, in actuality, had postponed the system's launch due to insufficient resources. It has yet to launch.
The SEC said Roberts made $422,500 from the scheme by selling more than 1.3 million shares of his own stock in the company - often without publicly disclosing those sales - and paid the promoter in Infinium Labs stock without registering the transfer with the SEC. Both activities violate federal securities laws. It is asking a U.S. District Court in Orlando, Fla., to force Roberts to surrender those proceeds, pay a civil penalty and be prohibited from ever again serving as an officer or director of a public company or participating in any offering of penny stock.
Calls to the company for comment were not returned.
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.............. NOT!
http://money.cnn.com/2006/05/16/technology/infinium/index.htm
NEW YORK (CNNMoney.com) - The former CEO of a Seattle-based video game company has been charged with artificially inflating his company's stock price while he sold personal shares, commonly referred to as a pump and dump scheme.
The Securities and Exchange Commission on Tuesday accused Timothy Roberts of hiring a promoter to send junk faxes to tens of thousands of investors across the country, making it appear Infinium Labs was on the verge of launching a new gaming system, dubbed "The Phantom." Infinium, in actuality, had postponed the system's launch due to insufficient resources. It has yet to launch.
The SEC said Roberts made $422,500 from the scheme by selling more than 1.3 million shares of his own stock in the company - often without publicly disclosing those sales - and paid the promoter in Infinium Labs stock without registering the transfer with the SEC. Both activities violate federal securities laws. It is asking a U.S. District Court in Orlando, Fla., to force Roberts to surrender those proceeds, pay a civil penalty and be prohibited from ever again serving as an officer or director of a public company or participating in any offering of penny stock.
Calls to the company for comment were not returned.