Feeds

Californian faces 100 years in jail and £10m fine for false press release

Emulex not happy

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

A 23-year-old California man faces 100 years in jail and a $10 million fine for trying to defraud investors in Emulex.

Mark Jakob was yesterday indicted by a Federal grand jury on 11 counts of securities and wire fraud, AP reported. The indictment charges him with making more than $241,000 from the scam - where an apparently bad gamble on the stock market left him facing losses of $97,000 on 24 August unless Emulex's share price fell.

The charges relate to accusations that Jakob issued a false press release on August 25 claiming Emulex's president was about to resign and the company was under investigation. It caused the share price to plunge by 62 per cent in one day, wiping $2.5 billion off the value of the Californian-based outfit.

The "statement" went out via Los Angeles-based service Internet Wire - where Jakob used to work, and was picked up by news services such as Bloomberg and CBSMarketwatch.

Jakob managed to recover his losses, but the FBI were hot on the case and traced the email account used to send the phoney release to a computer at El Camino College in Torrance, California - where Jakob was once a student. He was arrested on 31 August.

If found guilty it could land him in the slammer for 100 years paying off cumulative fines totalling $9.5 million. ®

Related Stories

Man arrested in Net hoax sting
Online fraudsters fleece UK etailers
Eight years in prison for playboy DRAM VAT scamster
Europe to get tough on cybercrime

Internet Security Threat Report 2014

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.