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Friday, September 1, 2000 |
A former employee of online press release distributor Internet Wire was
arrested on 31 Aug 2000 and charged with securities and wire fraud in
connection with the distribution of a phony press release that sent a tech
company's stock price plummeting on 25 Aug. Shares of Emulex, a maker of
fiber-optic equipment, lost up to 60% of their value, most of it during one
15-minute freefall, after some financial news services, including Dow Jones
and Bloomberg, ran stories based on the release. The bogus release claimed
the company had issued a profits warning, that it was being investigated by
securities regulators, and that its CEO had stepped down. The stock
eventually recovered most of its value after the company denied the
reports. The suspect, 23-year-old Mark Jakob, allegedly used a computer at
El Camino Community College to construct and send the release, and then
initiated a series of trades that netted him profits of $240,000.
(AP/*Investors Business Daily*, 1 Sep 2000; NewsScan Daily, 1 September 2000
http://www.investors.com/editorial/tech05.asp) ["NewsScan" via risks-digest Volume 21, Issue 04]
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A former employee of online press release distributor Internet Wire was
arrested on 31 Aug 2000 and charged with securities and wire fraud in
connection with the distribution of a phony press release that sent a tech
company's stock price plummeting on 25 Aug. Shares of Emulex, a maker of
fiber-optic equipment, lost up to 60% of their value, most of it during one
15-minute freefall, after some financial news services, including Dow Jones
and Bloomberg, ran stories based on the release. The bogus release claimed
the company had issued a profits warning, that it was being investigated by
securities regulators, and that its CEO had stepped down. The stock
eventually recovered most of its value after the company denied the
reports. The suspect, 23-year-old Mark Jakob, allegedly used a computer at
El Camino Community College to construct and send the release, and then
initiated a series of trades that netted him profits of $240,000.
(AP/*Investors Business Daily*, 1 Sep 2000; NewsScan Daily, 1 September 2000
http://www.investors.com/editorial/tech05.asp) ["NewsScan" via risks-digest Volume 21, Issue 04]
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Maximillian Dornseif, 2002.
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