Pluvia, the extortion charge is the easier of the charges to present to the jury. In his interview Mr. Elgindy admits that Brown is not a convicted felon, yet he represented him as one. Was the only reason that Mr. Elgindy went short the stock because of his believed that the CEO was a convicted felon? How did he come to this conclusion at the time that the CEO was felon when, when he latter admits that is not the truth?
Mr. Elgindy is going to have to sell to the jury that he received those lower than market shares, for reasons unrelated to his short selling. I think everyone on Jury will be happy to know they too get to buy 300,000 shares and make and easy 30 cents on every share. Everyone gets to do this right?
Mr. Elgindy will also need to sell to the jury that after he made a nice profit by selling those shares into his own members, that his ending the shorting in the NSOL was in no way related. Its very very likely it would appear a jury, to be a quid pro quo shakedown. Just give the bully your milk money, and you will stop getting beaten up, is an extortion concept that every person on a jury is familiar with. Can you say this does not appear to be in fact just that?
The extortion charges seems to be easier to show, because of what appears to be Mr. Elgindy’s misreading of the FBI database. Mr. Elgindy says the CEO was not a convicted felon in the interview he gave. So where did he get that information in the first place? A public source? Okay I will bite, what public source? Show the public source that says he is a felon.
Or again did he just misread the “infallible” FBI database. Wait he never had access to that according to his defenses of other charges. So it goes back again, where is this public source showing the CEO is a felon. Why is the public source wrong too? Why did Mr. Elgindy only realize his error upon receipt of lower than market shares? It’s a real catch-22. This is above my GS level, if I knew how these charges of extortion could be defended against, they would be paying me a whole lot more money. I don’t understand how Mr. Elgindy can give a truthful defense against the extortion charge without harming his other possible defenses in the other charges against him.
It’s a REAL catch-22, because it looks like quid pro quo extortion.
Read all of the Dow Jones article below….it has more information in it that does the indictment when it comes to Network Solutions.
From the indictment
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Nuclear Solutions
On December 19, 2001, at approximately 11:15 a.m., the defendant JEFFREY A. ROYER searched the NCIC database and found criminal history information regarding the founder of Nuclear Solutions, a company listed on the OTCBB.
On December 19, 2001, at approximately 1:31 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room and in e-mails to his subscribers, "NSOL - CEO ... is a convicted felon ..."
On or about December 19, 2001, the defendant AMR I. ELGINDY short sold approximately 12,200 shares of the stock of Nuclear Solutions.
On or about December 31, 2001, the defendant AMR I. ELGINDY short sold approximately 10,000 shares of the stock of Nuclear Solutions.
On January 3, 2002, at approximately 2:53 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room and in e-mails to his subscribers, "NSOL – short 20% @ 2.05 (add).
On or about January 31, 2002, the defendant AMR I. ELGINDY short sold approximately 10,000 shares of the stock of Nuclear Solutions.
On January 31, 2002, at approximately 10:14 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room and in e-mails to his subscribers, "[w]e are pulling out of NSOL" and "NSOL <--- coverage [terminated] for good."
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Message 17943565
Read the whole article
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What followed is a matter of contention.
The government claims that Elgindy , Royer, Cleveland and Peters used illegally obtained information about Brown's drug charges from the FBI databases to extort shares from him.
Peters and Elgindy , meanwhile, insist that the block of stock obtained by Elgindy was an arranged stock purchase, similar to thousands of transactions taking place in the market everyday.
"I was called by a very good friend of mine (Slavny) and asked for help, I wasn't looking at shorting the stock or anything," Peters said in a telephone interview. "Paul Brown called me at the suggestion of Slavny and asked me for my help," Peters said, adding that he was innocent of the charges filed against him.
Elgindy also insists that he's innocent.
"How do you get from arranged sale to extortion?," Elgindy asked in a telephone interview from the Brooklyn correctional facility where he remains incarcerated. "I got a call from Troy Peters and I talked to Brown," Elgindy said, explaining his purchase of a block of discounted stock that he says was 250,000 shares to 300,000 shares. Elgindy said that after several conversations, he was convinced that Brown was not a convicted felon. "I just wanted to move on," Elgindy said.
What Elgindy and others didn't know is that the transaction was closely monitored by the FBI which had begun an investigation into the behavior of short sellers after the Sept. 11 terrorist attacks in the U.S.
According to Peters, Brown and Elgindy began negotiations on a block of shares in early January and those shares traded in the open market in early February. The transaction took place through First Geneva, a San Diego brokerage for which Peters is a consultant.
Elgindy said he paid $1.05 or $1.10 a share for the stock that he bought from First Geneva.
The federal indictment alleges that Elgindy began selling short Nuclear Solutions stock around Dec. 24 and continued doing so through Jan. 25, 2002. The indictment also charges that once Elgindy secured a block of discounted shares, he would tell subscribers of his websites to stop shorting the company's stock.
Messages on one of those websites show that on Feb. 1, Elgindy recommended that subscribers to his service cover their short positions of Nuclear Solutions at $1.27. Elgindy "invited" subscribers to bid for Nuclear Solutions' shares at a price from $1.27 to $1.35 a share, indicating that he or someone he knew had shares to offer. A little over an hour later, Elgindy posted another message: "NSOL is officially gone, I'm being told," a message that indicated that those shares he earlier mentioned were now sold. |
