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Strategies & Market Trends : A@P, Can we trust him, -- Ignore unavailable to you. Want to Upgrade?

To: Daniel Miller who wrote (262)	6/17/1999 11:41:00 PM
From: .com	Respond to of 381

FRONT MAN. But Amr ''Tony'' Elgindy, head of a Fort Worth-based firm called Key West Securities Inc., has alleged in court papers that Belfort bought a silent partnership in his firm early in 1997. He maintains that the relationship fell apart after he resisted pressure by Belfort to open up an office in New York City to sell stock to the public in the time-proven way, by high-pressure cold-calling. According to Elgindy, Belfort bought into his firm using a trusted associate named Robert LoRusso as a ''front man.'' LoRusso and Belfort vigorously deny Elgindy's allegations. LoRusso and Belfort both maintain that Elgindy is no angel. Indeed, in September, Elgindy settled NASD charges of alleged trading abuses by consenting to a fine and a one-year ban as principal of a brokerage firm. He neither admitted nor denied the charges. The NASD complaint alleges that ''Elgindy was suffering from severe mental illness'' at the time of the trading abuses. Elgindy maintains that was a reference to severe depression. LoRusso also asserts that Elgindy misappropriated funds and failed to disclose regulatory problems, which resulted in a suit by LoRusso to rescind his deal to buy into the firm. LoRusso's allegations are denied by Elgindy, who settled the suit by agreeing to rescind the deal. PASSIVE? Although Elgindy is anything but an unbiased observer, his allegations support the assertion of chop-house brokers and traders that Belfort remains a powerful presence in the chop-stock business. According to Elgindy, Belfort is a well-capitalized short-seller of chop stocks--an adventurous brand of trading that is Elgindy's specialty. But, say Elgindy and other sources familiar with Belfort's activities, Belfort also has had access to cheap stock in numerous companies and has pushed a host of stocks through retail firms-- particularly Monroe Parker, D.L. Cromwell, and Biltmore. In a phone conversation with Elgindy in December, 1996, that Elgindy taped, Belfort seems to imply that he is more than just a passive observer of activities on the Street. Referring to one stock deal, Belfort told Elgindy: ''I have access to a lot of small firms.'' Elgindy and others familiar with Belfort's activities maintain that Belfort has been a hidden power behind the retailing of a host of stocks. Among the stocks that Elgindy says were Belfort favorites were Big City Bagels, Luma Net, Grand Havana Enterprises, and the company that was the subject of the possible Paragon overcharge--Environmental Technologies. Elgindy says Belfort would sometimes supply brokers with cheap stock in the firms, which would be sold to customers at huge markups. Belfort says he legitimately owns shares in some of those companies but denies having access to ''cheap stock'' in any. The chief executive of Grand Havana, Harry Shuster, says that he knows of no Belfort involvement in the company for the past two years. Officials of the other companies did not return phone calls. STARTLING REVELATION. Elgindy maintains that Belfort sometimes would wax sentimental about the good old days at Stratton. And taped excerpts of those conversations, which Elgindy shared with BUSINESS WEEK, are revealing. In one conversation in December, 1996, Belfort speculated why one particular stock both men were shorting was doing so well. ''They're paying people off,'' said Belfort. ''They're definitely paying people off with stock. I know. I owned a very large OTC firm.... I made a zillion dollars off my deals.'' In another taped conversation, Belfort made a startling disclosure. According to Belfort's taped account, a company called Builders Warehouse Association Inc.--which since has become a unit of Osicom Technologies Inc.--once offered him a huge bribe in return for Stratton selling the stock. Said Belfort: ''This guy came to me, this...kid from Utah came to me....He offered me three shares in Switzerland for every share I sold....I had like 500 brokers,'' Belfort continued. ''I could have sold a zillion shares.'' Belfort declined to discuss the alleged bribe offer. Osicom and Barry Witz, former chief executive of Builders Warehouse, did not respond to requests for comment. Whether Elgindy is a whistle-blower or a sore loser, one thing is sure: The conduct that he describes is common in the world of chop stocks. In their efforts to clean up the world of micro-cap stocks, the regulators have always seemed to be a day late and a dollar short--or perhaps more accurately, years late and billions of dollars short. Their efforts to crush micro-cap fraud are well-intentioned, sometimes vigorous--but they have failed to put more than a dent in the problem. Driving brokers out of the industry does little good when they stay active behind the scenes. Shutting firms does little good when other firms open to take their place. The money is simply too good: The indictment on Nov. 25, which alleges the involvement of four ranking Mob figures in pushing a single chop stock, proves that. And it is coming from a seemingly bottomless pit--the pockets of small investors.

To: Daniel Miller who wrote (262)	6/19/1999 11:41:00 PM
From: Anthony@Pacific	Respond to of 381

'' LoRusso and Belfort vigorously deny Elgindy's allegations." The funny thing is, I wonthe case and they both got indicted..laughed my self into a frenzy..when I got the notice of indictments..LOL..true I had to wait almost 8 months from the time I gave the Feds my tapes and evidence but it was sweet vindication:; EXCERPT FROM THE SEC...Press stories:::Story 2 / 5 : 99 <GO> for list of story options. Govt T N I Page 1 / 4 BN Ex-Stratton Oakmont President Ordered to Stay in Jail by Judge Sep 11 1998 14:30 Ex-Stratton Oakmont President Ordered to Stay in Jail by Judge New York, Sept. 11 (Bloomberg) -- A federal judge in New York ordered the former president of Stratton Oakmont Inc., a defunct brokerage firm, to stay in jail until his trial. U.S. District Judge John Gleeson in Brooklyn, New York yesterday ruled that Daniel Porush be ''permanently detained'' in a New York jail until trial because he's a flight risk, said Charles Stillman, Porush's attorney. Stillman said he may appeal the decision because doesn't think Porush is a flight risk. Federal prosecutors last week charged Porush, 41, and former Stratton Oakmont Chairman Jordan Belfort, 36, with illegally earning $5 million by misusing a Securities and Exchange Commission exemption for foreign sales of U.S. securities. They also were accused of offering $2 million to a potential witness to conceal evidence. Both were arrested Sept. 2. Belfort has been released and confined to his home on a $10 million secured bond, said Gregory O'Connell, Belfort's attorney. He wears an electronic bracelet, O'Connell said. Porush and Belfort are scheduled to reappear in federal court Oct. 9. Story 2 / 5 : 99 <GO> for list of story options. Govt T N I Page 2 / 4 Prosecutors charged Porush and Belfort with 27 counts including securities fraud, money laundering and obstruction of justice. Both were previously barred from the securities industry. Stratton, based in Lake Success, New York, was expelled from the securities industry by National Association of Securities Dealers regulators in December 1996 for a history of sales abuses. It's being liquidated under the supervision of a court- appointed trustee. --Betsy Jelisavcic in New York (212) 233-2257, through the New York newsroom (212) 318-2300 /ag XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX More Headlines For you about the ever credible Belfort,,,calling Depression ..mentall illness, hell if I was staring at 27 indictments Id say anything to discredit witnesses..Mouhahahahah...try: http://IwishA@Pwasntalwaysright.com You may find some helpful hints. XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX 99 <GO> for list of headline options. Govt T N I Enter 21 <GO> to SAVE this search, 25 <GO> to refine search. Headlines for Categories: SEC and JORDAN BELFORT WIRE TIME Page 1 1) BN 5/21 California Man Indicted on Securities Fraud Charges (Repeat) 2) BN 9/11 Ex-Stratton Oakmont President Ordered to Stay in Jail by Judge 3) BN 9/03 Stratton Oakmont Execs Indicted for Securities Fraud (Update2) 4) BN 9/03 Stratton Oakmont Execs Indicted for Securities Fraud (Update1) 5) BN 9/03 Stratton Oakmont's Top Executives Indicted for Securities Fraud