Former Infinium Labs CEO Accused of Trading Scam

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The Securities and Exchange Commission (SEC) has charged Timothy Roberts, the former CEO of Infinium Labs with illegally "pumping and dumping" (driving up the value of Infinium Labs stock and then selling it).
Last November, Roberts allegedly paid Michael Pickens (a stock promoter charged with previous, similar schemes) to have faxes sent to "tens of thousands of potential investors across the country." According to the SEC announcement:
The faxes made it appear as if Infinium Labs were on the verge of launching its flagship product, a home videogame system called the “Phantom.” In fact, at the time of the fax campaign, Infinium Labs lacked the financial resources to overcome the significant technological and manufacturing hurdles preventing it from marketing the game system to consumers. The faxes also included baseless stock price targets, predicting that Infinium Labs’ stock price would rise as much as 3,000% in the coming weeks, and falsely claimed that the company was headed by a developer of the Microsoft X-Box.
The SEC alleges that Roberts sold approximately $422,500 worth of Infinium stock in the higher price and increased volume that resulted from the fraudulent promotion of Infinium Labs.

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This page contains a single entry by Editor published on May 16, 2006 10:17 PM.

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