U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16747 / October 3, 2000
SECURITIES AND EXCHANGE COMMISSION v. MARK S. JAKOB, Civil Action No. EDCV-00-687 VAP (Mcx) (C.D. Cal.)
FEDERAL JUDGE GRANTS PRELIMINARY INJUNCTION, CONTINUES ASSET FREEZE IN SEC CASE INVOLVING EMULEX HOAX
The Securities and Exchange Commission ("Commission") announced that Judge Virginia A. Phillips granted its application for a preliminary injunction against Mark S. Jakob ("Jakob") of El Segundo, California. The preliminary injunction against Jakob, which also continues the previously ordered asset freeze, was granted in response to the Commission's Complaint charging Jakob with perpetrating the August 25, 2000 Internet hoax involving a fake press release about Emulex Corp. of Costa Mesa, California. In addition to continuing the asset freeze of more than $400,000 in assets held by Jakob, the Court's order also enjoins him from violating the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Additionally, the order prohibits Jakob from destroying or otherwise disposing of any documents, including computer records. Finally, the Court ordered the release of $30,000 from the frozen assets for the payment of Jakob's attorneys' fees.
The preliminary injunction, asset freeze and other relief will remain in effect pending trial of this action.