TSX Venture Exchange - Street Wire.
TSX member Global's ex-FBI client faces major bail
TSX Venture Exchange
*TSX
Wednesday May 29 Street Wire.
Also Securities and Exchange Commission (*SEC) Street Wire.
by Brent Mudry
In a surprise development in the Elgindy case, former FBI Special Agent Jeffrey A. Royer of Encinitas, Calif., was ordered by a New York judge to prepare to post hefty bail to counter the government's claim he poses
a serious flight risk. Judge Raymond Dearie of the Eastern District of New York made the order Tuesday when Mr. Royer and co-defendant FBI Special Agent Lynn Wingate of Albuquerque, N.M., were arraigned in Brooklyn.
Bill Muller, a spokesman for the U.S. Attorney's Office in Brooklyn, told Stockwatch the judge "indicated considerable security must be posted" to ensure Mr. Royer's future court appearances. Although Judge Dearie did not indicate the amount of bail he is considering, he ordered Mr. Royer to return to court Thursday afternoon. Beyond that, the next court date for Mr. Royer and Special Agent Wingate is July 18 for a case status connference.
A six-count grand jury indictment, unsealed last Wednesday, named California short Amr Ibrahim (Anthony) Elgindy, associates Troy Peters and Derrick
Cleveland, former FBI agent Mr. Royer, who left the force to work for Mr. Elgindy in December, and Special Agent Wingate, on charges of racketeering conspiracy, insider trading, market manipulation, extortion conspiracy and obstruction of justice. All are presumed innocent until proven guilty beyond reasonable doubt.
The indictment notes Mr. Elgindy, Mr. Cleveland, Mr. Royer and unidentified others shorted targeted stocks through brokerage accounts at Global Securities in Vancouver, and elsewhere. Stockwatch revealed Mr. Elgindy was a star client of Art Smolensky, the founder and chairman of Global. Mr. Elgindy was denied bail Friday in San Diego after the judge heard evidence Global wired
funds offshore for Mr. Elgindy to Lebanon, where he bought a property.
Mr. Elgindy and Mr. Peters next appear in court June 6 in San Diego in a removal hearing, as Brooklyn Assistant U.S. Attorney Ken Breen, the lead prosecutor in the case, intends to extradite the pair to New York.
(c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com |
