Elgindy's own posting exposes the NSOL extortion.
Elgindy’s posting totally exposes what he did with NSOL, the problem with lies is the liar can hardly keep it all straight once the threads start to come untwined.
Elgindy maintains that NSOL was a scam company to this very day. Yet for some reason he stopped shorting the stock, told everyone he could possibly influence to stop shorting the stock, sold those same people special stock he just received, at a locked in profit for each share.
Going to the Elgindy Manifesto posted on 10-5 the following quotes are pealed out.
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The fact that I was willing to cover NSOL and move on to other trades was my legitimate choice to make. I was not under any obligation to remain in that or any other short position, nor did I have any responsibility to expose every scam I came across. I am also NOT employed by shareholders. The “sizzle” in NSOL was his felony status. Debunking NSOL was left to others. I was sure there were dozens of other trading chat rooms that were buzzing with chat about his fake Ph.D. and non-existent batteries. I gave the man my word, and kept it until he died.
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I was also charged with “extorting” 2 CEO’s of small scam companies for reasons that no one has ever offered.
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12/24/01
10:25] anthony >> 4 Brown had his felony conviction expunged
[10:26] anthony >> 4 He can legally deny it ever existed unless he is testifying
in criminal case
[10:26] anthony >> 4 I have the expungement document
[10:27] anthony >> he got it expunges to get the weopons permit
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12/21/01 @ 9:58 AM:
I am told by a site member that Paul Brown is trying to get rid of me.
[09:58] BostonBlackie >> NSOL. Dr, Brown denies up and down that he was ever convicted of a felony. He had a big meeting with his lawyers last night to plot how to get you off his back.
12/24/01 @ 10:25 am:
In chat I disclose that Brown’s felony was expunged and confirm that he is not a felon.
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…on Jan. 31st, I purchase 300,000 shares of NSOL @ $1.00 on the open market with NASD stock watch approval as a below market trade…
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1/31/02 @ 10:12PM:
B/C email telling all members I am terminating coverage forever on NSOL!
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2/1/02: @ 9:43 AM:
In the midst of the audio on NSOL, I broadcast an email suggesting “NSOL, cover $1.27 & 1.35”.
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2/1/02: @ 9:56 AM:
B/C to cover NSOL @ 1.27 & 1.35. It said “put your bids in if you want”
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2/1/02 @ 10:57 AM:
B/C terminating coverage on NSOL.
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My requirement for covering NSOL and not publicly or privately discussing NSOL was simple. I agreed to terminate coverage of NSOL if Mr. Brown could prove to me that he was not a convicted felon, which he did.
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Now adding in some clippings from other posts.
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In the case of Nuclear Solutions, federal prosecutors say Elgindy contacted Paul Brown, the company's chief executive, in late 2001 and attempted to use what turned out to be incorrect information about Brown's previous felony conviction to scare the executive into agreeing to a deal under which he would sell a discounted block of 300,000 to 350,000 shares. The shares could then be used by Elgindy and members of his private investment Web site to cover their short positions in Nuclear Solutions stock.
Franco told jurors that her brother was very upset by Elgindy's telephone calls, the tapes of which were played in open court. In two calls on Dec. 19, Elgindy could be heard harassing Brown about a previous conviction, which the short seller didn't know had been dismissed, and about the validity of Brown's college diploma.
Prosecutors also played for the court tapes of several telephone conversations between Brown and Peters. In those tapes, Peters was heard trying to reassure Brown that because he knew and was a friend of Elgindy, he could work out a deal to make short sellers who had been pressuring the stock of Nuclear Solutions "go away."
In one call, Peters could be heard telling Brown that Elgindy was not the only powerful short seller targeting Nuclear Solutions, and that Fiero and his firm, Fiero Brothers Inc., were also involved. Peters said in the call that he could easily take care of Elgindy, but that Fiero was a major force that also needed to be dealt with. Peters told Brown Elgindy would need about 100,000 shares and that Fiero would need 200,000 shares to cover their existing short positions in the stock of Nuclear Solutions.
In a later conversation also heard in court, Peters offered to put together an investment banking deal under which free trading shares could be transferred to Elgindy and Fiero to make them go away.
Elgindy's lawyers tried unsuccessfully to prevent the prosecution from introducing the recordings into evidence, claiming that their authenticity was in question. In particular, Elgindy's lawyers argued that tapped conversations between Fiero and Brown should not be admitted in evidence. In one call, discussed with the judge in a sidebar without jurors present, Fiero could be heard telling Brown that he should go to the FBI because the deal sounded like extortion.
Chatlog - December 20, 2001
[12:34] peter>> when are you gonna rip NSOL apart again Tony? you just gonna let him stew for a while?
[12:34] anthony>> yes peter
[12:34] anthony>> i want to let him think he is safe
Royer acknowledged Monday that he
revealed the existence of FBI and SEC investigations, executives'
criminal records and other sensitive information to Elgindy and
associate Derrick Cleveland.
He said the apparent violations were justified because Elgindy and
Cleveland were stock-market experts who helped him develop evidence of
financial wrongdoing.
Prosecutors say the relationship was criminal. Elgindy was accused of
paying Royer for the information and using it to manipulate stock prices
and extort companies that were the subjects of investigations.
When pressed by Assistant U.S. Attorney Seth Levine about apparent
violations of FBI rules, Royer grew testy, asserting that he was an
independent-minded agent who had the right to decide what information to
reveal.
"It's real easy for you to armchair quarterback when you don't have
anything to do with the case," Royer told Levine. "Pursuant to a
law-enforcement purpose, I can do anything I want with the files."
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Clearly there are some MAJOR problems with what Elgindy is saying.
He said he gave “the man his word” most logically to stop shorting the stock. He then says he is willing to take the lower than market priced shares on the condition that Brown will provide him the information he is not a convicted Felon.
This most certainly is Elgindy making things up to suit his defense.
Why?
Because Elgindy knew on 12-24 nearly a FULL MONTH BEFORE the covering day that Brown was not a felon. He says he is looking at the document itself.
So why would Elgindy need Brown to prove to him anything when he already had the proof in hand.
The answer is simple, because he could profit from extortion. Elgindy says above that prosecution did not show why he would extort, he would extort for money, obviously.
So the entire reason that Elgindy gives for moving on from NSOL makes no sense independent for extortion. Does anyone think that Elgindy would stop shorting NSOL if he was not given those shares in compensation?
Elgindy was being told that Brown was panicking. What did Elgindy do, WHEN HE ALREADY ADMITS HE KNEW BROWN WAS NOT A FELON. He told brown if he can prove to him what he already knew…and give him these shares of discounted stock…that he would give him his word he would move on.
That is the very definition of extortion. “Pay me and beatings will stop.”
Meanwhile before the shares were exchanged, Elgindy was causing Brown to be in fear, calling him up and taunting him.
There was never any reason for Brown to prove to Elgindy that Brown was not a felon….Elgindy already knew.
There is not much doubt is there? Anyone see how a reasonable and fair minded jury could not convict him of extortion? Extortion is a simple crime, it’s a basic crime. All this stuff about stocks and whatever don’t make a hill of beans.
Did Elgindy use the threat of force to extort compensation away from Paul Brown and NSOL? Isn’t it clear enough? Why did he stop shorting the company? He said it was a scam. He already knew Brown had his record expunged. Was that the only reason he was short the stock.
And beyond his own need why did he have to give Paul Brown his word on anything? What did he promise Brown? What was he given for that promise?
Extortion is not hard to understand.
If Elgindy had a defense I think it would have come out of his own mouth in court.
If he was guilty it would be found on the tapes he left.
Someone want to explain how the jury messed up on conviction upon extortion?
I would love to read some creative writing. |
