SEC settles case against man charged in Emulex stock hoax
LOS ANGELES, Jul 29, 2001 (The Canadian Press via COMTEX) -- The U.S. Securities and Exchange Commission has settled its lawsuit against Mark Jakob, the man accused of manipulating the stock price of the Emulex Corp. last August by issuing a phony news release.
According to the agreement, Jakob will turn over the $241,000 US he made trading Emulex stock, plus $97,000, plus interest, which represents the potential trading losses he hoped to avoid by sending the company's stock price tumbling, the SEC said Tuesday.
Jakob will also pay a penalty of $102,642. The total represents the amount of money frozen by the government after Jakob's arrest in August 2000. That money will be held by the court and paid to defrauded investors who have filed a class action suit in New York state. The SEC believes Jakob's actions defrauded investors out of $110 million.
The agreement was approved last week by United States District Court Judge Virginia Phillips in Riverside, Calif.
Jakob, 23, of El Segundo, consented to the order without admitting or denying the government's allegations. Last December, Jakob plead guilty to wire and securities fraud. He is scheduled to be sentenced Aug. 6. He faces up to four years in prison and maximum fines and restitution in the millions.
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