This is the least of Tony's problems, but he apparently may be penalized for his Canadian trading. From new.stockwatch.com :
BCSC Elgindy hearing delayed by Global client Cleveland
2002-06-06 10:14 PT - Street Wire
by Brent Mudry
A hearing by the British Columbia Securities Commission to ban indicted California shortseller Amr Ibrahim (Anthony) Elgindy and co-accused Derrick Cleveland has been delayed two weeks to allow Mr. Cleveland's recently retained Vancouver lawyer to fully prepare for the case. Lawyer Gregory Tucker told the tribunal panel Wednesday that he may seek to vary an interim trading ban related to two Cleveland corporate accounts at Vancouver brokerage Global Securities: Brezido Partners LP and Diversified Performance Funds Inc., both of Oklahoma.
BCSC staff lawyer Joe Bernardo told vice-chair Joyce Maykut and fellow commissioners Neil Alexander and Marc Foreman that co-respondents Mr. Elgindy, his wife Mary Faith Elgindy and his company Pacific Equity Investigations have been legally served, but they have made no responses either directly or through counsel. Affidavit evidence shows BCSC investigator David Zwarich spoke with Ms. Elgindy, who confirmed she is represented by San Diego lawyer Jeanne Knight, her husband's counsel. Although the BCSC faxed documents to Ms. Knight relating to its May 24 temporary order and its notice of hearing, the lawyer has not yet replied.
Ms. Maykut set a new date of June 19 for the hearing and extended the May 24 temporary orders. BCSC staff seek to extend the temporary orders for 90 days to permit the conclusion of Mr. Elgindy's American criminal proceedings. Besides the mention of Mr. Cleveland's position, no new evidence was presented at the brief appearance Wednesday.
While Mr. Elgindy is no doubt preoccupied by his criminal case in the United States, the BCSC case could have a devastating impact on his short-selling activities, as he could be barred from dealing with Howe Street firms, which he has used to circumvent more onerous American short-selling restrictions. Several Vancouver brokerages, including Global and Pacific International Securities, opened a number of accounts for Mr. Elgindy and his associates in recent years, despite his regulatory baggage.
In one case, the Ohio Division of Securities, after a March 14, 1997, hearing, denied Mr. Elgindy a licence as a securities salesman in the state, on the grounds he was "not of good business repute." Although Mr. Elgindy objected to an unflattering staff report, the securities regulator noted it based its decision after considering all 10 factors stipulated by a state administrative code rule in determining "good business repute."
Meanwhile, Mr. Elgindy, who faced a removal hearing in San Diego Thursday, essentially a brief identity and extradition hearing, made a short unscheduled court appearance Tuesday to waive extradition to the Eastern District of New York, where the grand jury indictment was unsealed May 21. Through counsel, Mr. Elgindy suggested he might have a better chance for bail bonding in New York. Another co-accused, Troy Peters, is expected to also waive extradition at the removal hearing Thursday afternoon.
Mr. Elgindy has been denied bail based on the government's concern he poses a serious flight risk. EDNY Assistant United States Attorney Ken Breen, assisted by AUSA Shane Harrigan of the Southern District of California, earlier presented evidence that Mr. Elgindy made several large wires, mainly from Vancouver brokerage Global Securities, to Lebanon, and purchased a residential property in the offshore haven.
Mr. Harrigan notes no firm date has been set for Mr. Elgindy's transfer to New York, which could take up to 12 or 14 days. Mr. Elgindy is expected to fly with the U.S. Marshalls Service "Conair" airline to the Federal Transfer Center in Oklahoma City, the Federal Express-type hub of the service's prisoner shipping network, before his final leg, to the Metropolitan Detention Center in Brooklyn. It is not clear whether alleged co-conspirator Mr. Cleveland, who lives in Oklahoma City, will get a chance to meet and chat with Mr. Elgindy at the bustling transfer centre, which processes 60,000 to 80,000 pretrial and convicted transit prisoners a year.
In another development in New York, United States District Court Judge Raymond Dearie granted former FBI Special Agent Jeffrey Royer bail at $500,000 (U.S.) Monday, despite serious reservations after Mr. Royer's recent alleged witness tampering incident. After his arrest, Mr. Royer contacted two New Mexico law enforcement officials in Albuquerque and Gallup, where he worked for the FBI until Mr. Elgindy recruited him to work for Pacific Equity in December: a police officer and an evidence clerk. Judge Dearie told Mr. Royer his postarrest conduct was a colossal misjudgment and "an act of outrageous arrogance," according to Dow Jones reporter Carol Redmond.
(Readers wishing more details of Mr. Elgindy's current cases may refer to Street Wires dated May 22, May 23, May 24, May 27, May 28, May 29, June 3 and June 4, under the Canadian symbol *TSX and the U.S. symbol *SEC.)
(Mr. Elgindy was also noted last year, stemming from his Pacific International dealings, in Street Wires dated July 10 and July 13, and this year, dated May 5, under the Canadian symbol *BCSC.)
bmudry@stockwatch.com |
