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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: CatLady who wrote (5740)	8/17/2000 2:54:04 PM
From: sommovigo	Read Replies (1) \| Respond to of 19428

CatLady, The thing that distinguishes between people throwing out "picks" and what Elgindy did as documented in the Wired article is mass-action in an instant. These "members" of his posse pay him $600/month to be advised on a moment's notice that a short is coming down on a particular issue. They are advised by phone, fax, and by internet instant-message - they move as a pack, they are aware of one another shorting the same issue at substantially the same time at substantially the same price. This is TEXTBOOK stuff here - this seems to be the exact thing described in Section 9 of the Securities Exchange Act of 1934. It's insidious stuff, and I suspect that Elgindy never advised his "members" that they may be committing fraud. As a previously registered broker and former MM, Elgindy must be all too aware that this kind of action is potentially illegal in a big way. All of the people that Elgindy may not have advised but acted on his word with organized and concerted effort - they should, at the very least, be RAGING MAD that he did not advise them of the potential illegality of what he was getting them to do. I know I'd be puking on my shoes if I found out that Elgindy was putting my freedom at risk without advising me, and then I'd be spending some quality time with my attorney to find out just how much at risk I was.