SEC Brings Charges Against Former Infinium CEO
May 17, 2006 (financialwire.net via COMTEX) -- May 17, 2006 (FinancialWire) The Securities and Exchange Commission Brought charges Tuesday against the former chief executive officer of Infinium Labs, Inc. (OTC: IFLBE).
Timothy M. Roberts, who was CEO of the Seattle-based video game developer, is alleged to have played a major role in a fraudulent "junk Fax" scheme used to promote the company's stock.
According to an SEC statement Roberts hired a stock promoter in November 2004 to
send faxes to tens of thousands of potential investors across the country. The faxes claimed that Infinium Labs was about to launch a breakthrough videogame product called "The Phantom". The messages also included wild predictions of share prices rising 3,000% within weeks. In reality the company didn't have the financing needed to complete development of the product at that time.
Roberts allegedly benefited personally from the ruse by unloading over $400,000 worth of his own shares in the company. Many of these transactions went unreported. The SEC also claims that Roberts paid the junk fax promoter with four million of his own shares of Infinium stock, which violated the registration provisions of federal securities laws.
The SEC has requested that the United States District Court for the Middle District of Florida order Roberts to give up his "ill-gotten gains" plus interest, and bar him from serving as an officer or director of a publicly-traded company. Roberts lives in Longboat Key, Florida.
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