To: Jeffrey S. Mitchell who wrote (3652 ) 9/2/2002 2:59:22 PM From: EL KABONG!!! Read Replies (1) | Respond to of 12465 online.wsj.com Judge Agrees to Set Terms For Short-Seller's Release By CAROL S. REMOND DOW JONES NEWSWIRES NEW YORK -- A federal judge agreed Thursday to set conditions for short seller Amr "Anthony" Elgindy to be released from jail. Mr. Elgindy and four others were arrested in May after the government charged that he, two Federal Bureau of Investigation agents and two other traders used confidential information to manipulate the stocks of companies. The federal indictment also charges that Mr. Elgindy used information gathered from FBI databases to extort shares from some companies. Short sellers try to turn a profit by borrowing shares, selling them and then buying back the shares at a lower price if the stock falls, pocketing the difference. Having knowledge of an undisclosed government investigation could give a short seller an advantage because it could unnerve other investors, causing the stock to fall. "I continue to have misgivings," Judge Raymond Dearie said, questioning whether Mr. Elgindy attempted to deceive probation officers when he didn't tell them he traveled to Lebanon, bought a house there and opened bank accounts in that country last year. Mr. Elgindy is on probation after a mail-fraud conviction in 2000. The judge has yet to set bond for Mr. Elgindy's release from a Brooklyn jail. Both sides are scheduled to meet Sept. 10 to finalize the bail. Mr. Elgindy's lawyer, Gerald Lefcourt, said his client's bond likely would be "in the millions." In addition to the hefty bond, Mr. Elgindy will be kept under house arrest once he is released. One condition also under review calls for Mr. Elgindy to be fitted with a global-positioning-system bracelet that would allow the government to monitor his movement at all times. Mr. Elgindy has denied the extortion and stock-manipulation counts against him. Write to Carol Remond at carol.remond@dowjones.comUpdated August 29, 2002 5:23 p.m. EDT online.wsj.com Judge Agrees To Release Short-Seller Elgindy On Bail DOW JONES NEWSWIRES By Carol S. Remond Of DOW JONES NEWSWIRES NEW YORK -- Judge Raymond Dearie agreed Thursday to set conditions for the release of short seller Anthony Elgindy . Elgindy and four others were arrested in May after the government charged that he, two Federal Bureau of Investigation agents and two other traders used confidential information to manipulate the stocks of companies. The federal indictment also charges that Elgindy used information gathered from FBI databases to extort shares from some companies. "I continue to have misgivings," Dearie said, questioning whether Elgindy attempted to deceive probation officers when he didn't tell them he traveled to Lebanon, bought a house there and opened bank accounts in that country last year. Elgindy is on probation after a mail fraud conviction in 2000. The judge has yet to set bond for Elgindy's release from jail. Both sides are scheduled to meet Sept. 10 to finalize the bail. Elgindy's lawyer, Gerald Lefcourt, said his client's bond likely would be "in the millions." In addition to the hefty bond, Elgindy will be kept under house arrest once he is released. One condition also under review is for Elgindy to be fitted with a Global Positioning Satellite bracelet that will allow the government to monitor his movement at all times. - By Carol S. Remond, Dow Jones Newswires; 201-938-2074 Updated August 29, 2002 3:51 p.m. EDT KJC