The Securities and Exchange Commission today accused Timothy Roberts, former CEO of Infinium Labs, with artificially inflating his company's stock price while selling his own shares. This was supposedly accomplished by hiring a stock promoter to send junk faxes to tens of thousands of investors across the country, so that it would seem that Infinium Labs was going to launch a gaming system called The Phantom. The system has been delayed several times and still has yet to launch.

"Despite the company's poor cash position, Roberts wired Pickens $100,000 from an Infinium Labs bank account on Dec. 17, 2004," says the SEC filing. "On Dec. 20, 2004 and again on Dec. 31, 2004, Roberts wrote checks to Pickens totaling $100,000 from an Infinium Labs bank account."

The SEC claims that Roberts made $422,500 from selling 1.3 million shares of Infinium stock. He did not publicly disclose these sales, nor the payment his promoter got in Infinium Labs stock, which violates federal securities law. U.S. District Court in Orlando, Florida is being asked by the SEC to force Roberts to pay back the money, pay a fine and be barred from any director or officier position at a public company ever again.