A man arrested last night for staging a hoax that sent stock of technology company Emulex reeling last week was a former employee of Internet Wire, the press release company through which the damaging hoax report was disseminated, officials said.

Federal Bureau of Investigation officials and other federal authorities named the man they arrested as college student Mr Mark Jakob (23) and said that, up until August 18th, he was an employee of Internet Wire.

Officials said Mr Jakob made almost $250,000 profit on the deal when Emulex prices fell more than 50 per cent last Friday. It has since recovered most of its losses.

The fake Emulex press release, posted on Internet Wire, said the company was restating its earnings and was being probed by the Securities and Exchange Commission.