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

To: StockDung who wrote (88010)	11/16/2004 11:56:34 PM
From: Janice Shell	Read Replies (2) \| Respond to of 122087

LOL!! Saw that on CNN. Sheesh.

To: StockDung who wrote (88010)	11/17/2004 12:32:05 AM
From: tralfasador	Read Replies (1) \| Respond to of 122087

FBI Agent Sought Info About Stock Fraud - Lawyer DOW JONES NEWSWIRES November 16, 2004 5:20 p.m. By Carol S. Remond Of Dow Jones Newswires NEW YORK -- Former Federal Bureau of Investigation special agent Jeffrey Royer wasn't looking to profit from sharing information with traders, his lawyer told jurors Tuesday. Instead, he was attempting to find information that could help the bureau ferret out scam companies. The government has alleged in a 2002 federal indictment that Royer passed confidential information gathered from FBI databases to online stock guru Anthony Elgindy and other short sellers. Derrick Cleveland, a former member of Elgindy 's private investing Web site, testified for the government that he passed information gleaned from Royer to Elgindy and others who traded on it. Royer and Elgindy stand accused of securities fraud, market manipulation and extortion in the Eastern District for the District Court of New York. Others charged in the case are scheduled to be tried separately. Cleveland has pleaded guilty to conspiracy to commit securities fraud and is cooperating with the government. Cross examining Cleveland, Royer's lawyer Lawrence Gerzog tried to show that the former agent shared information with the witness because he thought Cleveland would be able to help the FBI investigate stock fraud. "You told (Jeffrey) Royer that you could help him in the (Broadband Wireless) investigation, correct?," Gerzog asked Cleveland, who became a confidential informant for Royer in April 2000. "That was part of the reason," Cleveland answered. Cleveland testified in court for the government that he told Royer that he would share 50/50 any profit gleaned from information passed on by Royer. Cleveland told jurors that, among other golden tidbits supposed to help him make money short selling stock, Royer gave him confidential information about an FBI investigation into Broadband Wireless International Corp. (BBAN) in early 2000. Gerzog also asked the government witness about his testimony that Royer invited Cleveland to meet with one of his informants, a woman named Pam Humphrey. Cleveland testified in court that Royer shared with him FBI documents about two companies called Energas and Potomac Energy following the meeting with Humphrey. Under cross examination, Cleveland agreed that the documents came from Humphrey and not the agent. Gerzog suggested that given that Humphrey was supposed to be helping the FBI in its investigation of Broadband Wireless, it made sense that the agent asked Cleveland, at the time an informant supposed to be helping the government, along for the meeting. Gerzog also grilled Cleveland about his claim of a 50/50 deal between him and the agent given the lack of any document, telephone call or e-mail corroborating his claim of the profit-sharing agreement. "Did you talk to Royer about how you would account (to him) about the profits you did or didn't make?," Gerzog asked Cleveland, who answered "I don't remember." Cleveland admitted under questioning that his trading skills must not have been great if, as he claimed, he never made a profit from Royer's tips. Following Gerzog's cross-examination of Cleveland, Elgindy 's lawyer resumed his questioning of the witness. Barry Berke made copious use of chatlogs from Elgindy 's private Web site to challenge Cleveland's statements that he and others traded on confidential information. In the case of Biopulse and Vital Living, two companies for which Cleveland testified he received information from Royer, Berke highlighted that significant public information in the form of news articles was available at about the same time Cleveland claimed he traded on information he received from the FBI agent. Cleveland's cross-examination is expected to conclude Wednesday, followed by a 'redirect' by the prosecution. -By Carol S. Remond, Dow Jones Newswires; 201-938-2074; carol.remond@dowjones.com