interesting point.... how long was elgindy using fbi info?
we participated in many hard core dd investigations with elgindy and others on his site. generally i can say when elgindy made a claim he found this or that, we always tried to confirm it ourselves because anyone who delt with him knew info coming from him *only* couldn't be relied upon.
that said, the scams we uncovered along with ap had legit sources, not the fbi. many many many people worked hard on those investigations. bottom line, the group as a whole produced some of the best research found on wallstreet. generally the info sources that proved fraud were clearly defined, often included in our reports.
frankly until this trial, i thought elgindy's claims to contacts with everyone from law enforcement to the mob were more of the same ap bs... such as "i never exaggerate..." "i never lost money .."
we weren't involved in HITT, maybe others who were can shed some light on the source of that info. looking back, it seems the fbi info only came in when ap started going after trades that made no sense - those few thin traded small caps... although i have no idea if that's true. it would be interesting to know... the date of fbi searches should show something... i spect that would have come out in the prosecutions case if he was "mining" fbi info with royer clear back in 99.
Bill, There may have been some method to his thought. I'm thinking of May 99's HITT. When (CEO) Dorian Reed's FTC problems came to light in the Bloomberg article of May 1999, HITT took a huge whack. It was a $800 million market cap trading around $20 at the time. HITT dropped 50% one day, and continued a rapid decline afterwards.
Dorian's FTC convictions were difficult to find at that time, though. And the SEC was never involved until much later, when the stock was ... I think maybe 2 bux.
So, exposing the CEO isn't always fruitless. In the case of HITT, it made a big chunk of change. But I do agree with you more frequently it is not that way.
He met Royer later on in 1999. Perhaps his thinking was along the lines of "Maybe every POS could be a HITT". So, continue that with a new contact (Royer) who might have access to difficult to find info and ... |
