PairGain bogus news man arrested

The Feds have arrested a man they believe masterminded a plot to drive up the stock price of California-based PairGain Technology. Twenty five-year-old Gary Dale Hoke was arrested at his home in Raleigh, North Carolina charged with creating a bogus Bloomberg news item alleging that PairGain had agreed to be acquired by Israeli company, ECI Telecom. He has been released on bail although no date has been set as to when he is due to face charges. The false news item -- which was posted on a Yahoo! bulletin board -- created a run on the stock price before it was rumbled by financial police in the US. If found guilty Hoke -- who is an employee of PairGain -- could be gaoled for up to ten years and face a fine of $1 million. Earlier this week, Bloomberg filed a lawsuit against unnamed persons and for unspecified damages over the hoax. ®