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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: StockDung who wrote (80911)	10/10/2002 11:12:34 AM
From: tool dude	Read Replies (2) \| Respond to of 122087

Thanks Truth its on my radar screen and I will be waiting for it to go to the moon! :)

To: StockDung who wrote (80911)	10/10/2002 11:53:39 AM
From: KZAP	Respond to of 122087

When will we get the answers to these accusations? Before his arrest, Amr Elgindy was a successful stock speculator, with a $2.2 million home and collection of expensive cars. He made his money through short-selling, meaning that he borrowed stock, immediately sold it and then waited for the price to go down so he could replace it at a cheaper price. In essence, short-sellers are betting that the stock price will go down. And some, including Elgindy, work to make the stocks go down by disseminating negative information about companies to other speculators. Elgindy used his Web site and Internet chat rooms to spread the negative information. Often, Elgindy passed tips on corporate fraud to the FBI or the Securities and Exchange Commission. When they launched investigations, he made money by short-selling the stock. Some who know him say he got legitimate pleasure from spurring legal investigations. "I know Tony felt like he was on the government's side," says Mary Cummins, an investor who followed his comments on the Web. "He took great pleasure when they finally won a court verdict against the suspect company. It's just amazing that they are now claiming that he used the FBI." According to the federal indictment, Derrick Cleveland, a subscriber to Elgindy's on-line stock comments, paid $30,425 to Jeffrey Royer, an agent in the Albuquerque office of the FBI, between November 2000 and May 2001. In return, Royer allegedly passed confidential criminal records of certain corporate executives to Cleveland, who in turn passed the information on to Elgindy. Elgindy, in turn, would then start shorting the stock and spread the word of the criminal records over the Internet to drive the price down. In his letter to The Union-Tribune, Elgindy strongly denied the accusations. "I have never given Royer a dime for info!" Elgindy wrote. The government charges that Elgindy used information from Royer at least four times before short-selling a stock. On Jan. 2, for instance, Royer scanned the FBI's nationwide criminal database for the name of Richard McBride, founder of Florida's SeaView Video Technology. The next day, Elgindy's Web site blasted SeaView, noting that McBride was serving six years of probation for fraud. At the time that he published his attack, Elgindy – who had been shorting the stock for weeks – said he got the information on McBride on the Web, rather than from any confidential law enforcement source. In fact, the information about McBride was available on the Florida Department of Corrections' Web site, which lists all felons on probation, for no charge to the public. Elgindy copied the department's listing and posted it on his Web site. Bradd Milove, a San Diego attorney who once sued Elgindy for mishandling a client's funds, said the public availability of that information should aid Elgindy, whether or not he was tipped by the FBI. "How can you charge that somebody was using insider information if it is publicly available?" Milove asked. Similarly, in December, Elgindy announced he had discovered that Paul Maurice Brown, founder of Idaho's Nuclear Solutions, was a "convicted felon." The announcement came an hour after Royer did a search in the FBI database for Brown's name. Although the timing of Elgindy's announcement is suspicious, news of Brown's arrest record was easily obtainable. In 1991, Brown himself wrote an open letter to business associates, which has since been posted to the Web, noting that he had twice been arrested for "drug making." Where's the answers? Who's the Crim?