U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21499/ April 22, 2010

DISTRICT COURT ENTERS FINAL JUDGMENTS ORDERING A CIVIL PENALTY AGAINST DEFENDANTS OSVALDO PITTERS AND TERRELL J. KUYKENDALL AND FINAL JUDGMENT OF PERMANENT INJUNCTION AGAINST DEFENDANT STEVEN M. IVESTER.

SEC v. Osvaldo Pitters et al.., Civil Action No. 09-20957-CIV-GRAHAM/TORRES

The Securities and Exchange Commission announced that on April 2 and April 13, 2010, a District Judge in the Southern District of Florida entered Final Judgments against two defendants in a corporate accounting fraud case ordering them to each to pay a civil penalty of $130,000. United States District Judge Donald Graham ordered Osvaldo Pitters, the former chief financial officer of VoIP, Inc, a now defunct Internet communications company, and Terrell Kuykendall, the general manager of a VoIP subsidiary, to pay the penalties pursuant to Section 21(d)(3) of the Securities Exchange Act of 1934 (“Exchange Act”) and Section 20(d) of the Securities Act of 1933 (“Securities Act”). The Court at the Commission’s request dismissed the Commission’s claims for disgorgement and prejudgment interest against Pitters and Kuykendall.

The Commission also announced that on April 15, 2010, United States Magistrate Judge Edwin Torres entered a Final Judgment of Permanent Injunction and Other Relief by consent against VoIP’s former chief executive officer, Steven M. Ivester, in the same case. Ivester neither admitted nor denied the allegations of the complaint in the consent. The Final Judgment imposed a permanent injunction on Ivester against future violations of Sections 17(a)(2) and (3) of the Securities Act, Section 16(a) and Rules 13a-14 and 16a-3 of the Exchange Act. It also ordered Ivester to pay $122,082, which consists of disgorgement of $55,018, $12,064 in prejudgment interest and a civil money penalty of $55,000.

The Commission filed a complaint against Ivester, Pitters, and Kuykendall in April 2009, alleging they fraudulently recorded fictitious sales in VoIP’s financial statements and in publicly filed periodic reports with the Commission, that caused VoIP’s financial statements and books and records to be materially inaccurate.

The District Court had previously entered permanent injunctions by default against Pitters and Kuykendall.

For more information on earlier actions in this case, see Litigation Release No. 20999 (Apr. 14, 2009) and Litigation Release No. 21291 (Nov. 12, 2009).

 
http://www.sec.gov/litigation/litreleases/2010/lr21499.htm

Last modified: 4/22/2010