To: Anthony@Pacific who wrote (2851 ) 5/22/2002 3:26:39 PM From: Smiling Bob Respond to of 19256 More coming no doubt Scum Govt Says Elgindy Used Secret FBI Info To Manipulate Stks By MICHAEL RAPOPORT and CAROL S. REMOND Of DOW JONES NEWSWIRES NEW YORK -- Anthony Elgindy, the controversial short-seller and Internet stock commentator, has been charged with manipulating stocks by using secret government information fed to him by collaborators within the Federal Bureau of Investigation. Elgindy was indicted by the U.S. Attorney's office in Brooklyn, N.Y., on charges of racketeering, insider trading, market manipulation, extortion conspiracy and obstruction of justice. Four other people, including a current FBI agent and a former FBI agent, were also indicted. The indictment alleges that Elgindy, through his FBI contacts, obtained confidential information from FBI databases about criminal history and investigations relating to companies that he was shorting or thinking of shorting. A short-seller sells borrowed shares and profits when a stock declines, so exclusive access to negative information about a company would be valuable to a short. Elgindy then used the secret information to decide how to invest, prosecutors say, and distributed it to other short-sellers to encourage them to short the stock also. Paid subscribers to Elgindy's e-mail newsletter and investment Web site received the information also, prosecutors said. In addition, according to the indictment, Elgindy extorted free or cheap shares of stock from the insiders of companies he had targeted in exchange for his agreement to lay off - to stop shorting the companies and stop spreading negative information about them. Elgindy was even able to spy on the government's grand jury investigation of him through his FBI contacts, prosecutors allege. One of the FBI agents indicted along with Elgindy gleaned information about the probe from an FBI database and told Elgindy of the direction of the investigation and that he was a target, according to the indictment. A woman at Elgindy's home hung up the phone on a reporter who called seeking comment. Elgindy's attorney couldn't immediately be reached. Updated May 22, 2002 12:47 p.m. EDT online.wsj.com .