Infinium Labs stock connected to fax spamming

— 8:34 AM on December 31, 2004

The company behind the Phantom console, Infinium Labs, already has its share of controversy brewing with its legal battle with the cold, HardOCP. Now comes word, in the form of an Associated Press story, that the company's stock may have been inflated via a fax spamming operation:

Earlier in December, handwritten faxes addressed to a "Dr. Mitchel" have began arriving on fax machines across the nation, begging the doctor to turn on his cell phone so that he can place a trade in a stock that's about to triple in price. The fax appears to have been sent by "Chris," who according to the body of the fax is Mitchel's financial planner. There is no other identification on the page. A telephone number listed at the bottom to call if the fax was received in error is not functioning.

Enough investors who received such faxes recently believed they had inadvertently stumbled onto a great stock tip, particularly since a postscript to the scrawled note says, "You'd better be good to me this Christmas. No other stock broker has given you back-to-back wins four times in a row."

In the days after the faxes were sent, the stock prices of the companies mentioned in the different versions of the fax took off on heavy volume, indeed showing strong gains.

Among the stock symbols touted by the faxes is that of Infinium Labs:
So far, there appears to be at least three versions of the same fax circulating with the ticker symbols of Infinium Labs Inc., AVL Global Inc. and Soleil Film Inc.

All are dated Dec. 15.

Infinium Labs' stock, for example, finished over-the-counter Bulletin Board trading last week at 74 cents a share, more than triple its late price of 20 cents on Dec. 14.

Infinium Labs swears off any involvement in the fax scheme.

In other news, NVIDIA will be partnering with Infinium Labs at the Consumer Electronics Show next week, a fact that led Kyle Bennett at the HardOCP to write, "NVIDIA is going to support any company that will buy their product regardless of their business ethics."

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