TSX Venture Exchange - Street Wire.
TSX member Global's ex-FBI client faces major bail
TSX Venture Exchange
*TSX
Wednesday May 29 2002 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 conference.
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 |
