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Pastimes : Investment Chat Board Lawsuits -- Ignore unavailable to you. Want to Upgrade?

To: mmmary who wrote (3412)	7/20/2002 6:18:04 PM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 12465

Different version of the Cleveland story... I wasn't aware that Cleveland was "in the business", so to speak. He is/was an active hedge fund owner/operator. And I also was under the impression that Cleveland is/was in Oklahoma. According to this article, he recently shared an apartment in the San Diego area with the former FBI agent, Royer. I had originally thought that it would be Royer that would roll over on the others. But it's looking more and more like it will be Cleveland that does "doggie tricks" for the prosecution... online.wsj.com FROM THE ARCHIVES: July 17, 2002 Cleveland Pleads Guilty To Racketeering In Elgindy Case DOW JONES NEWSWIRES By Carol S. Remond Of DOW JONES NEWSWIRES NEW YORK -- Short-seller Derrick Cleveland pled guilty to charges of racketeering conspiracy Wednesday and agreed to cooperate with the U.S. government. Cleveland and four others, including controversial short seller Anthony Elgindy, were charged with racketeering and securities fraud in May. In its indictment, the government charged that Cleveland had been working with Elgindy and others, illegally using classified information obtained with the help of two former agents of the Federal Bureau of Investigation. In a prepared statement Cleveland told Judge Joan Azrack that from February 2000 to May 2002 he was "involved in criminal activity that included conspiracy with Anthony Elgindy and (FBI agent) Jeff Royer and others to use confidential, nonpublic information in an effort to realize financial gain." Cleveland said in his plea that "the information was used to trade stock and in demanding less than market value block of stocks from short traded companies." "The activities in which I was involved as part of the criminal enterprise included the passing of information as well as the seeking of information and trading of stock," he said. Assistant U.S. Attorney Ken Breen, who is prosecuting the case, and Robert Manchester, a lawyer for Cleveland both declined to comment on what sentence Cleveland would likely face. A sentencing date has been set for Dec. 6, 2002. According to the indictment handed up by a grand jury in federal court in Brooklyn, N.Y., Cleveland, Elgindy and another associate, Troy Peters, were using confidential government reports on public companies and their officers to short stocks and, in some cases, to extort free or cheap shares from companies. The indictment charges that Cleveland, of Oklahoma City, first introduced FBI agent Jeffrey Royer to Elgindy in late 1999. According to the charges, Elgindy and Cleveland in early 2000 "corruptly induced" Royer to provide them with confidential information about companies they targeted for short selling. Elgindy, Cleveland and others were allegedly using the information to make trading decisions and assess whether the targeted companies were susceptible to extortion. Short sellers seek to make money by selling borrowed shares and then buying the shares back at a lower price after the price falls. Elgindy allegedly used two Web sites he owned, as well as postings on a variety of investment bulletin boards, to disseminate negative information about the companies he targeted for short selling. The indictment charges that Cleveland made about $30,000 in payments to Royer in 2000 and 2001. Elgindy, Peters, Royer and FBI agent Lynn Wingate have all pleaded not guilty to the charges. Last month, Elgindy, who remains in jail in Brooklyn, was deemed a risk flight by federal judge Raymond Dearie. Dearie said he wouldn't consider letting the short seller out on bail before the repatriation of about $650,000 in cash and property held by Elgindy in Lebanon. All the other defendants are out on bail. According to the indictment, Royer quit the FBI in December and went to work with Elgindy in San Diego until his arrest on May 22. Royer and Cleveland, who also spent much of the first five months of the year in California, shared an apartment in Encinitas, not far from Elgindy's residence. According to press reports, Cleveland owned and operated two hedge funds, Brezido Partners LP and Diversified Performance Funds Inc., both of Oklahoma. Under federal guidelines racketeering conspiracy calls for a statutory maximum term of imprisonment of 20 years. The charge also calls for a maximum fine of $250,000 and restitution of $4 million. -Carol S. Remond, Dow Jones Newswires; 201-938-2074; carol.remond@dowjones.com. Updated July 17, 2002 6:18 p.m. EDT KJC

To: mmmary who wrote (3412)	7/20/2002 9:05:16 PM
From: Stockbull	Read Replies (1) \| Respond to of 12465

Are you like his number one fan or what????Could Tony ever do wrong in your eyes?,Sheeesh!!!!!!!!!!!!!