And here's another reference to the $650,000. Let me assure you there are many more. They are not in the indictment because it is not inherently illegal to transfer funds to Lebanon. It came up as a prosecution argument against allowing bail. My suggestion is you cease arguing things that you obviously know little to nothing about.
FROM THE ARCHIVES: June 21, 2002
advertisement
Short Seller Elgindy Bail Hearing Set For Thursday
DOW JONES NEWSWIRES
By Carol S. Remond
Of DOW JONES NEWSWIRES
NEW YORK -- Short seller Anthony Elgindy will remain in jail in New York while Judge Raymond Dearie reviews evidence in the case.
A hearing is scheduled for Thursday, at which time Dearie will consider whether to release Elgindy on bail.
Elgindy has been incarcerated since May 22 after he was charged with securities fraud, insider trading and racketeering.
Elgindy was charged along with two other investors, a former FBI agent and a current FBI agent.
The government alleges that Elgindy and his associates used information illegally obtained through FBI databases to sell short the shares of companies they targeted. The government also alleges that Elgindy and others on occasion used information to extort free or cheap shares from some of the companies.
At a preliminary hearing Friday, prosecutor Ken Breen argued that Elgindy should remain behind bars because his dual U.S./Egyptian citizenship and large amounts of cash abroad make him a flight risk.
Elgindy pleaded not guilty to the charges of securities fraud and racketeering Friday.
Prosecutor Breen described Elgindy as the "ring leader" who faces significant charges and said that upon his return from a trip to Lebanon last year, Elgindy was preparing to flee after being alerted about the government's investigation by one of his alleged associates, FBI agent Jeff Royer.
Breen said Elgindy transferred $625,000 to Lebanon upon his return from the country. In addition to purchasing a beachfront property worth $325,000, the prosecutor said Elgindy opened accounts in the country and started a company there.
Also, Breen said that in addition to transferring money, Elgindy had shifted the ownership of most of his accounts into a company domiciled in Lebanon but with a Canadian address.
Breen also told Judge Dearie that Elgindy had tried to set up a direct deposit of the fees paid by subscribers to one of his Web pages in the amount of $25,000 that would be wired each month to him in Lebanon. Elgindy used two Web pages to publicize his short-selling efforts.
Meanwhile, Sean O'Shea, Elgindy's lawyer, argued that although Elgindy was born abroad, he and most of his family are firmly entrenched in the U.S.
O'Shea said Elgindy had wanted to set up the monthly transfer for a planned vacation in Lebanon and that he abandoned the idea after he was denied permission to travel there. Elgindy is on parole for a mail fraud conviction two years ago and needs permission before leaving the U.S.
"What is significant here is that the money was not sent because the trip did not take place," O'Shea said.
All other defendants in the case are out on bail.
-By Carol S. Remond, Dow Jones Newswires; 201-938-2074
Updated June 21, 2002 5:23 p.m. EDT |
