Re: 10/2/00 - Cybersecuritieslaw.com: Court Freezes Assets of Suspect Accused in Emulex Corp. Web Hoax; Man Pleads Not Guilty
October 2, 2000
Court Freezes Assets of Suspect Accused in Emulex Corp. Web Hoax; Man Pleads Not Guilty
On October 2, the Honorable Virginia A. Phillips, United States District Judge of the United States District Court for the Central District of California, granted a petition filed by the US Securities and Exchange Commission and ordered a freeze of approximately $428,000 worth of investment accounts and bank accounts reportedly controlled by Mark Simeon Jakob, the suspect in the Emulex Corp. Web hoax case. The Court reportedly rejected arguments by Jakob's lawyers that the Court should not freeze $428,000 worth of assets when Jakob was accused of obtaining only $241,000 of unlawful profits from the alleged scheme. The SEC countered, however, that investors lost more than $50 million in the incident. Jakob reportedly was permitted to withdraw $30,000 from his accounts to pay his legal fees. On October 10, Jakob entered a plea of "not guilty" before US Magistrate Ralph Zarefsky. Jakob is being allowed to remain free on $100,000 bail and was ordered to appear for trial in federal court in Los Angeles on November 21 when he will face prosecutors presenting evidence on eleven counts of securities fraud and wire fraud.
See:
Securities and Exchange Commission v. Mark S. Jakob, Civ. Action No. EDCV-00-687 VAP (Mcx) (C.D. Cal., order entered on Oct. 2, 2000); US Securities and Exchange Commission, Federal Judge Grants Preliminary Injunction, Continues Asset Freeze in SEC Case Involving Emulex Hoax, Litigation Release No. 16747 (Oct. 3, 2000) [http://www.sec.gov/enforce/litigrel/lr16747.htm]; US Securities and Exchange Commission, SEC News Digest Issue 2000-191 (Oct. 4, 2000) (scroll down to "Federal Judge Grants Preliminary Injunction, Continues Asset Freeze in SEC Case Involving Emulex Hoax") [http://www.sec.gov/news/digests/10-04.txt]; Josh Meyer, Judge Freezes Assets of Man Accused of Fraud, L.A. Times special to S.F. Chronicle SFGate (Oct. 3, 2000) [http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2000/10/03/BU115249.DTL]; Judge Freezes Assets of 23-Year-Old Man Charged in Emulex Hoax, Associated Press special to S.J. MercuryCenter (Oct. 3, 2000) [http://www.mercurycenter.com/breaking/docs/051531.htm]; David Rosenzweig, Man Pleads Not Guilty in Emulex Stock Hoax Case, LATimes.com (Oct. 11, 2000) [http://www.latimes.com/business/cutting/20001011/t000096916.html].
cybersecuritieslaw.com [The Week of October 16, 2000 (Volume 2, Issue 9)] |
