Guilty Plea in Emulex Fraud.A former junior college student who caused Emulex Corp. investors to lose about $110 million in a stock fraud scheme pleaded guilty to federal fraud charges. Mark Simeon Jakob, 23, of El Segundo El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and , admitted to arranging a fake Internet news release about the Costa Mesa Costa Mesa (kŏs`tə mā`sə), city (1990 pop. 96,357), Orange co., S Calif., on the Pacific south of Santa Ana; inc. 1953. It is a transportation, residential, and light industrial center. high-tech firm on Aug. 25, prompting a 62 percent drop in the company's stock price. Jakob took more than $241,000 in profits through the hoax Hoax Balloon Hoax, The news story in 1844, reporting the transatlantic crossing of a balloon with eight passengers. [Am. Lit.: The Balloon Hoax in Poe] Piltdown man missing link turned out to be orangutan. [Br. Hist. , by trading shares during the stock's wild price swings. Sentencing was set for March 26 after Jakob pleaded guilty to two counts of securities fraud and one count of wire fraud. He faces up to 46 months in prison. Jakob also agreed to pay $110 million in restitution In the context of Criminal Law, state programs under which an offender is required, as a condition of his or her sentence, to repay money or donate services to the victim or society; with respect to maritime law, the restoration of articles lost by jettison, done when the . At the pleading, he turned over $54,000 in cash, reportedly proceeds from the hoax. Jakob said he committed the fraud to recover $97,000 in paper losses he faced through Emulex shares he had "sold short," betting the stock's price would drop. To prompt an Emulex price decline, Jakob e-mailed a fake company news release to Internet Wire. The news release stated that Emulex was restating prior profits as losses and that it was under investigation by the Securities Exchange Commission. The bogus bo·gus adj. Counterfeit or fake; not genuine: bogus money; bogus tasks. [From obsolete bogus, a device for making counterfeit money. news was picked up by several news outlets, prompting a price dive within minutes as panicked investors sold the stock. Prices for shares in the firm, which makes highspeed data storage products, quickly recovered but millions of dollars were lost by investors who sold low. |
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