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PairGain Fraud Suspect Faces Civil Suit

April 22, 1999|Times Staff and Wire Reports

The Securities and Exchange Commission filed a civil lawsuit against Gary D. Hoke, 25, the PairGain Technologies Inc. employee who is accused of creating a fake Bloomberg News Web page to fool investors into thinking that Tustin-based PairGain was being acquired by an Israeli company. The suit, which seeks unspecified damages, was filed in U.S. District Court in Los Angeles and accuses Hoke of stock manipulation. PairGain stock surged 31% the morning of April 7, when the fake report was posted, then retreated after the hoax was exposed. Hoke, of Raleigh, N.C., also faces a charge of criminal fraud. Shares of PairGain, which makes networking systems, fell 19 cents Wednesday to close at $10.69 on Nasdaq.

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