It is also alleged that VoIP Inc. CEO Steven Ivester knew the company was struggling and the company's actual revenues were "substantially less" than its projections, said the complaint. He didn't question the company's financial statements, but resigned in October 2005 after unloading 4 million shares of the company's stock to make a tidy $4.4 million in profits. The SEC also says he didn't file the proper paperwork.

VoIP Inc.'s financial irregularities were discovered in March 2006, resulting in the resignation of Pitters and the subsequent firing of Kuykendall in April 2006.

The SEC is seeking for the three to lose the profits they made from their actions, pay a civil penalty and permanently bar them from acting as an officer or director of a publicly held company.

Source: Fierce VoIP