SEC files against former vidgame exec

May 19, 2006

The U.S. Securities and Exchange Commission this week charged a former chief executive officer of Infinium Labs for his role in a fraudulent junk fax scheme.

The agency alleges that Timothy M. Roberts, the former CEO of the Seattle-based videogame developer, authorized the fax promotion and gained more than $400,000 by unloading his Infinium Labs shares in the ensuing run-up in trading volume.

According to the complaint filed in the U.S. Court for the Middle District of Florida, Roberts hired a stock promoter in November 2004 to send faxes to thousands of potential investors nationwide, in which the faxes were made to appear as if Infinium Labs were on the verge to launch its flagship product -- a home videogame system called the "Phantom," the SEC said.

The SEC also said the company lacked the financial resources for technology and manufacturing hurdles if it were to market the game system.

Additionally, the faxes also falsely predicted that Infinium Labs' stock price would rise as much as 3,000 percent in coming weeks and that the company was headed by a developer of the Microsoft Xbox, according to the SEC.

Moreover, it alleges that Roberts took advantage of the increased trading volume in stock by selling about $422,500 of his personal stock holdings, with many of his stock sales unreported to the public, and had paid the promoter with 4 million shares of his own stock in violation of the registration provisions of the federal securities laws.

Copyright 2006 by United Press International

Explore further: Yahoo sees signs of growth in 'core' (Update)

add to favorites email to friend print save as pdf

Related Stories

Uber meets local lookalikes in Asia taxi-app wars

33 minutes ago

Riding on its startup success and flush with fresh capital, taxi-hailing smartphone app Uber is making a big push into Asia. There's a twist, though: Instead of being the game-changing phenomena it was in ...

Fur flies as US gets to grips with feral cats

49 minutes ago

It's Friday night in Eckington, a quiet residential corner of Washington, and the back alley is crawling with feral cats—rich pickings for seasoned cat-trapper Marty King.

Japan stem cell body splashes cash on luxury furniture

55 minutes ago

A publicly-funded research institute in Japan, already embattled after accusing one of its own stem cell scientists of faking data, has spent tens of thousands of dollars on designer Italian furniture, reportedly to use up ...

No signs of radiation in water near nuke dump

12 hours ago

Water samples from three reservoirs near the federal government's underground nuclear waste dump in southeastern New Mexico show no signs of contamination after a radiation leak at the plant.

Recommended for you

Yahoo sees signs of growth in 'core' (Update)

8 hours ago

Yahoo reported a stronger-than-expected first-quarter profit Tuesday, results hailed by chief executive Marissa Mayer as showing growth in the Web giant's "core" business.

Intel reports lower 1Q net income, higher revenue

9 hours ago

Intel's earnings fell in the first three months of the year amid a continued slump in the worldwide PC market, but revenue grew slightly because of solid demand for tablet processors and its data center services.

Twitter buys data analytics partner Gnip

12 hours ago

Twitter says it has bought its data partner Gnip, which provides analysis of the more than 500 million tweets its users share each day—to advertisers, academic institutions, politicians and other customers.

Zebra to spend $3.45B on Motorola business

16 hours ago

Zebra Technologies is spending more than $3 billion to buy the enterprise business of Motorola Solutions in a considerable expansion that is both technological and geographical.

Relativity's last-minute bid for Maker rebuffed

21 hours ago

Relativity Media, a film financier and movie distributor, was rebuffed in a last-minute bid for Maker Studios, the YouTube video creator that had agreed to be bought by The Walt Disney Co. last month.

User comments : 0

More news stories

Intel reports lower 1Q net income, higher revenue

Intel's earnings fell in the first three months of the year amid a continued slump in the worldwide PC market, but revenue grew slightly because of solid demand for tablet processors and its data center services.

Low Vitamin D may not be a culprit in menopause symptoms

A new study from the Women's Health Initiative (WHI) shows no significant connection between vitamin D levels and menopause symptoms. The study was published online today in Menopause, the journal of The North American Menopa ...

Astronomers: 'Tilt-a-worlds' could harbor life

A fluctuating tilt in a planet's orbit does not preclude the possibility of life, according to new research by astronomers at the University of Washington, Utah's Weber State University and NASA. In fact, ...