SEC Hits Ex-VoIP Execs With Revenue Inflation Suit

Law360, New York (April 13, 2009, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission has sued three former executives of Internet telecommunications company VoIP Inc., alleging the company inflated revenues at a struggling subsidiary.

In a complaint filed Monday in the U.S. District Court for the Southern District of Florida, the SEC claims that between November 2004 and May 2005, Osvaldo Pitters and Terry Kuykendall recorded almost $1.4 million in “fictitious revenues” from sales of computer equipment for VCG Technologies Inc., a subsidiary of VoIP, formerly known as DTNet Inc., that never actually occurred....
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