Re: 5/22/02 - Bloomberg: Analyst Elgindy, FBI Agents Arrested, Charged With Racketeering
Analyst Elgindy, FBI Agents Arrested, Charged With Racketeering
By Dan Morrison
New York, May 22 (Bloomberg) -- Amr Elgindy, whose AnthonyPacific.com newsletter advises subscribers on short selling stocks, was arrested and charged with racketeering, the U.S. Attorney for the Eastern District of New York said in a press release.
Elgindy, who uses the name Anthony Elgindy and lives in Encinitas, California, was charged with using confidential information procured from two U.S. Federal Bureau of Investigation agents to manipulate securities markets, extort stock from companies and obstruct a grand jury investigation of the alleged scheme, according to the indictment.
Elgindy also owns Pacific Equity Investigations and InsideTruth.com. Also charged are Derrick Cleveland, who operated the companies with Elgindy, and Troy Peters, described as an associate. FBI agents Jeffrey Royer and Lynn Wingate also were charged.
Elgindy and Peters were arrested yesterday in California, according to the press release. Royer and Wingate were arrested in New Mexico; Cleveland was arrested in Oklahoma.
The defendants each face as much as 20 years in prison if convicted. Prosecutors in the Brooklyn office of U.S. Attorney Alan Vinegrad said they would try to seize Elgindy's bank and investment accounts as well as vehicles including a Rolls Royce, Bentley, Jaguar and Hummer.
Elgindy couldn't be reached for comment.
Short sellers profit by correctly predicting a stock's decline. They sell borrowed shares and then replace the stock at a cheaper price, pocketing the difference.
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