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To: Glenn Petersen who wrote (6697)	11/3/2004 11:07:27 AM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 12465

Re: 11/3/04 - [Elgindy] NY Post: Elgindy Pal Admits Passing FBI Tips ELGINDY PAL ADMITS PASSING FBI TIPS -------------------------------------------------------------------------------- November 3, 2004 -- A former associate of Amr "Anthony" Elgindy told jurors he passed confidential information from an FBI agent to the online stock picker, who was "pretty excited" to get the illegal tips. Derrick Cleveland, 38, who pleaded guilty in the case and is a key government witness, testified that he was a conduit for information from former FBI agent Jeffrey Royer to Elgindy. Cleveland said he referred to Royer in conversations with Elgindy as "Jeff, my FBI friend." Elgindy is accused of using Royer's tips about FBI probes of companies to make insider trades, manipulate markets, and extort money from firms who paid him to stop badmouthing them to customers of his online newsletter. Federal prosecutors say Elgindy engaged in short-selling on companies he heard about from Royer, while continuing to spread negative news about them. Elgindy was "pretty fired up" after Cleveland told him about probes of Seaview Technologies International conducted by the Federal Bureau of Investigation and the Securities and Exchange Commission in 2000, he testified. Elgindy circulated some of the information on his Web site, Cleveland said. "He was pretty excited about it," Cleveland said. "He thought it was good information." Elgindy, 36, who also went by the name Anthony Pacific, and Royer, 41, are accused of racketeering, securities fraud, and other crimes. They're on trial in federal court in Brooklyn. Elgindy's lawyer, Barry Burke, told jurors during opening statements yesterday that his client and a group of investors who followed his advice performed a public service by exposing frauds. "They were investigating, uncovering and exposing these fraudulent companies," Burke said. Bloomberg Copyright 2004 NYP Holdings, Inc. All rights reserved. nypost.com