Add to that a recent split with Matt Tyson, Elgindy's former lawyer, who was also the Web master and owner of his private site, and it promises a circus of accusations.
To hear Elgindy tell it, there was a financial dispute between Tyson and Elgindy. (Tyson's company, TC Ventures, owned and operated Elgindy's private site.) It worsened when, Elgindy says, Tyson refused to let a third party handle the money. Tyson, on the other hand, says his company delivered checks for roughly $40,000 per month to Elgindy and that Elgindy violated their contract by telling members to cancel their memberships and by steering them to another private site he was building.
"Mr. Elgindy is a world-class salesman," says Tyson. "He can sell glasses to a blind man. He has snowed over a large number of his members."
According to the NASD, Elgindy's registration was revoked last year for failure to pay an arbitration award in December 1998. Further, he never paid the $30,000 fine: Elgindy says he voluntarily left the NASD by stopping payments on the fine.
thestreet.com |
