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Ex-FBI Agent Involved in Scheme To Be Released on $500,000 Bail
By CAROL REMOND
DOW JONES NEWSWIRES
NEW YORK -- A federal judge reluctantly agreed to release a former Federal Bureau of Investigation agent accused of participating in an alleged short-selling scam with popular Internet stock-commentator Amr (Anthony) Elgindy.
U.S. District Court Judge Raymond Dearie said he would agree to the release of Jeffrey Royer if his family and former in-laws, who are willing to put up about $500,000 to secure his release, understand that any violation of Royer's condition of release will lead to the forfeiture of the bail money.
Mr. Royer will remain behind bars until proper documentation for his bail is provided to Judge Dearie. Lawrence Gerzog, a lawyer for Mr. Royer, said it would likely take two days.
Mr. Royer and Lynn Wingate, another FBI agent, are charged with providing confidential government information to Mr. Elgindy and two of his associates. The government alleges that the information provided by Mr. Royer and Ms. Wingate was used by Mr. Elgindy and his associates to put pressure on stocks that they were short-selling. And on some occasions, allegedly to extort free or cheap shares from the companies they targeted.
Ms. Wingate, who is now on leave, is currently free on bail. Meanwhile, Mr. Elgindy remains in jail in San Diego without bail after prosecutors convinced a judge that he is a flight risk. Mr. Elgindy associates Derrick Cleveland and Troy Peters are also out on bail.
Mr. Royer was incarcerated last week after the prosecution charged that he violated the condition of his release when he contacted a potential witness in the case.
Judge Dearie admonished Mr. Royer in court Monday, saying that the ex-FBI agent's conduct when he contacted law enforcement officers in Gallup and Albuquerque, New Mexico, was not only a colossal misjudgment, but also, "an act of outrageous arrogance."
Write to Carol Remond at carol.remond@dowjones.com
Updated June 3, 2002 6:37 p.m. EDT
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