VoIP Inc. hit with involuntary bankruptcy petition - Minneapolis / St. Paul Business Journal:

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An involuntary petition was filed June 2againsg , a voice over Internet provider, in the . The compant had already said in 2008 that it eliminates most of its workforce and suspendedf alltelecommunications operations. It is also facingg a lawsuit, filed by the in U.S. District Court in alleging former executives misled investors about the financial health ofthe Now, some creditors are appealing to a bankruptcy judge to help them recoverr judgments against VoIP. The petitioning creditors are of Calif., with a claim of $245,559; Garyn Angel, with a claik of $391,000; and Carrie Angel, with a claim of $152,172, accordinf to the petition.
“The filing of the involuntary is not directly relatecd to theSEC action, although I’m sure they will eventuallyh overlap,” said bankruptcy attorney Craig Pugatch, of , who represent s Noctua Fund, but said he does not represent the “A group of creditors have been attemptingv to collect assets. They believe assets are The SEC complaint, filed in alleges that, between November 2004 and May executivesrecorded $1.4 million in fictitioud revenue from purported sales of computer hardware and for managemengt services. It further alleges the inflated revenue raisedthe company’sx overall revenue figures by 43 percent for the year endefd Dec. 31, 2004.
The SEC also said management knew VoIP wasstrugglinv financially, that the company’s actual revenues were substantiall y less than its projectionw and that an executive sold more than 4 millionn shares of the company’ds stock to realize more than $4.4 million in profit withoutr properly recording the The SEC had askede the court to disgorge all of the profits the formet executives made as a result of theirr actions, pay a civil penalt y and permanently bar them from actinh as an officer or directof of a publicly held “We think the type of inaccuratw public information being put out was a pervasive problem,” Pugatch said.
“We also believed insiders and lenders were not acting Attempts to reach VoIP werenot successful. The company’a phone number in Fort Lauderdale hadbeen