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Emulex HoaxOn August 25, 2000, the press reported that Emulex Corporation's earnings dropped, its CEO was stepping down, and that it was under investigation by the Securities and Exchange Commission. The stock immediately lost 62% of its value during morning trading, losing $2.2 billion in capitalization as Bloomberg Television and Business Wire reported the bad news. It was soon learned that the press release was fraudulent, and example of pump-n-dump stock manipulation. It was traced to a press service named Internet Wire. The FBI stepped in and traced the story in turn to former Internet Wire employee Mark Jakob, who had profited over $250,000 by shorting the stock. Jakob was sentenced to 44 months in prison, forfeiting the gains and owing an additional $103,000 in penalties. References
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