Though Infinium Labs' Phantom console has yet to launch, it appears that the company's chairman and former-CEO wanted to begin making money on the machine as quickly as possible. The Securities and Exchange Commission has charged Timothy Roberts with misinforming investors to promote stock growth, then selling his own shares at the inflated price.
Roberts allegedly worked with stock promoter Michael Pickens in 2004 to send out thousands of faxes to investors. According to CNNMoney.com, the SEC claims that the memos were full of false information, including a guarantee of a January 2005 launch. The Phantom has not yet launched, and, true to its name, has disappeared from most radar screens--the console has been a no-show at the past two Electronic Entertainment Expos.
Investors took the bait, and Infinium stock immediately ballooned. Roberts then allegedly sold 1.3 million shares of the company's stock and made $422,500 on the exchange.
This isn't the first time Roberts has been in the news for some questionable dealings. In 2004, a Florida newspaper questioned Infinium's business practices after a stock split left Roberts and another executive with millions in stock.
The Phantom, part console, part gaming service, was designed to give its users on-demand gaming with titles from multiple platforms. Infinium recently revealed news about a product, but it wasn't The Phantom. The Phantom Lapboard is a wireless keyboard with an integrated mousepad. However, just a few months after announcing the peripheral, the company revealed that production on it had been delayed.