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Strategies & Market Trends : Banned.......Replies to the A@P thread. -- Ignore unavailable to you. Want to Upgrade?

To: Bill Ulrich who wrote (790)	12/16/2004 3:23:54 AM
From: DaiTN	Read Replies (1) \| Respond to of 5425

Feds pressing charge of stock manipulation UNION-TRIBUNE STAFF AND NEWS SERVICES November 2, 2004 Before the FBI arrested him in 2002, Anthony Elgindy was a successful stock speculator, with a $2.2 million home in Encinitas and a collection of expensive cars. Before the FBI arrested him in 2002, Anthony Elgindy was a successful stock speculator, with a $2.2 million home in Encinitas and a collection of expensive cars. Now the 36-year-old naturalized American is on trial in a federal courtroom in Brooklyn in an unusual case that offers a glimpse into the fervid world of short-sellers and the companies they bet against. To federal prosecutors, Elgindy orchestrated a criminal enterprise that used tips supplied by an FBI agent to influence the stock price of thinly traded small companies known as "penny stocks." But to defense lawyer Barry Burke, Elgindy was a crusader who exposed stock manipulation schemes by insiders at some small companies who sought to pump up the price of their stocks as they profitably dumped their own shares. In her opening statement yesterday, federal prosecutor Valerie Szczepanik told jurors that the case against Elgindy and former FBI agent Jeffrey Royer was one of corruption, fraud and betrayal. "They operated under the guise of exposing fraudulent companies when they themselves were involved in the fraud," Szczepanik said. Elgindy used information from Royer to make insider trades, manipulate markets and, sometimes, extort money from companies that paid him to stop badmouthing them, Szczepanik said. Elgindy and Royer, 41, are accused of racketeering, securities fraud and other crimes. Authorities contend Elgindy used his AnthonyPacific.com web site and online stock chat sites to spread negative information about companies, based on information Royer gave him. Elgindy did not even fully disclose his trades to subscribers, who paid $600 a month for his online newsletter. Royer "broke his oath" as an agent of the FBI and stole confidential information from FBI databases, Szczepanik said. He exploited relationships with other agents to get information about investigations, she said. "Instead of chasing down criminals, Royer was chasing down information for his personal profit," Szczepanik said. Short-sellers profit by correctly predicting a stock's decline. They sell borrowed shares and then replace the stock at a cheaper price, pocketing the difference. Berke, who is Elgindy's lead defense lawyer, told jurors his client and the individual investors who followed Elgindy's advice and investigated companies – performed a public service by exposing frauds. "They were investigating, uncovering and exposing these fraudulent companies," Berke said. Short-sellers like Elgindy were unpopular because the "big boys" on Wall Street didn't like the way he challenged them, the defense lawyer said. Elgindy was an early skeptic of technology and Internet companies in the late 1990s, asserting on a Web site, Silicon Investor, that they were overvalued, he said. "They're going against Wall Street and they're going against the ways of Wall Street," Berke said. Berke told jurors that Elgindy had many admirers, citing an unnamed lawyer with the Securities and Exchange Commission who described him as "a crusader against these fraudulent companies." Another admirer was Royer, Berke said, describing him as "someone who saw the value of what they were doing." Elgindy's followers were usually doing their own probes of companies the FBI was interested in, Berke said. Royer simply tried to put them in touch with the appropriate people in law enforcement, he said. Elgindy has been in jail since April after trying to board a domestic flight to Phoenix with a connection to San Diego. He was carrying fake identification, $25,000 in cash and $40,000 worth of jewelry, according to court papers. signonsandiego.com

To: Bill Ulrich who wrote (790)	12/16/2004 3:27:11 AM
From: DaiTN	Respond to of 5425

This opening statement by the federal prosecutor pretty much sum it up who is Anthony and his criminal enterprise. << In her opening statement yesterday, federal prosecutor Valerie Szczepanik told jurors that the case against Elgindy and former FBI agent Jeffrey Royer was one of corruption, fraud and betrayal. "They operated under the guise of exposing fraudulent companies when they themselves were involved in the fraud," Szczepanik said. >> Elgindy used information from Royer to make insider trades, manipulate markets and, sometimes, extort money from companies that paid him to stop badmouthing them, Szczepanik said.

To: Bill Ulrich who wrote (790)	12/16/2004 3:49:29 AM
From: DaiTN	Read Replies (1) \| Respond to of 5425

Not sure if this piece of news had been posted here or not,...sorry if it did. **************************************************************** Posted on Fri, Nov. 05, 2004 San Diego financial analyst profited when stock went down MICHAEL WEISSENSTEIN Associated Press NEW YORK - A corrupt FBI agent in cahoots with inside traders revealed a steady stream of sensitive information, including one corporate executive's alleged ties to the Russian mob and an undercover agent's presence at another firm, according to court testimony Thursday. The companies' negative information was posted on the Web site of San Diego financial analyst and self-styled stock guru Anthony Elgindy, who profited when their stock went down, a former Elgindy associate testified in federal court in Brooklyn. Derrick Cleveland testified that he rewarded the FBI agent, Jeffrey Royer, with a pickup truck and half the proceeds from trades based on the government information. Cleveland is cooperating with prosecutors against Elgindy and Royer in their trial on racketeering and fraud charges. Lawyers for Elgindy deny the charges, saying their client had a solid reputation for protecting investors by working with regulators to expose fraud by small publicly traded companies. Royer's attorney told the jury that he was an ambitious agent who recruited Cleveland and Elgindy as confidential informants and shared information with them with no corrupt intent. Royer did a terrible job of concealing his tracks, Cleveland testified Thursday. He sent Cleveland a photocopy of the pickup truck title from the fax machine at the FBI's Gallup, N.M., office. The fax arrived bearing an FBI stamp and was introduced into evidence Thursday. Royer also partied in Las Vegas with Elgindy and associates and chatted about his job as a federal agent in a chat room run by Elgindy for traders who paid him a monthly fee, Cleveland said. Prosecutors showed the jury photographs of Elgindy and fellow traders cavorting in Vegas with Royer's FBI business cards stuck to their foreheads. Also on display was the transcript of an online chat among Royer, Elgindy and his subscribers that included the boasts, "FBI in the house" and "FBI rules." Cleveland described a near-constant flow of information from Royer about small companies with penny stocks, including several that were under Securities and Exchange Commission investigation, one whose CEO had Russian mob links and another that was the subject of an undercover federal probe. Royer, who left the FBI before his arrest, did not jeopardize any federal investigations, said Bill Elwell, a spokesman for the bureau's Albuquerque office. Cleveland told the jury he was protective of his FBI source and cautioned Royer against direct contact with Elgindy and the other traders. "I told Royer that I didn't think it was very smart that he did that," Cleveland testified. Cleveland said he made thousands of dollars on some trades and lost money on many others. He said he agreed to a 50/50 split with Royer and planned to help the agent purchase a new home, until his wife put her foot down. After his arrest in late 2002, prosecutors suggested the Egyptian-born Elgindy may have known about the Sept. 11, 2001, terrorist attacks. The charge, which his lawyers dispute, has not been mentioned again in court. Elgindy telephoned his broker on Sept. 10, 2001, and asked him to liquidate his children's $300,000 trust account, prosecutor Ken Breen said at the time. The defendant predicted that the Dow Jones industrial average, then trading at about 9,600, would drop to 3,000, Breen said. montereyherald.com

To: Bill Ulrich who wrote (790)	12/16/2004 3:57:55 AM
From: DaiTN	Respond to of 5425

FEDS SAY 'NET STOCK PROMOTER WAS THIEF KATI CORNELL SMITH. New York Post. New York, N.Y.: Nov 2, 2004. pg. 033 Companies: Federal Bureau of Investigation (NAICS: 922120, Sic:9200 ) Section: Business Text Word Count 518 Document URL: << Onetime Internet stock guru Amr "Anthony" Elgindy was "an opportunistic thief" who robbed from the "rich and the poor," said federal prosecutors who yesterday began the trial of Elgindy and an FBI agent who allegedly passed him information. >>

To: Bill Ulrich who wrote (790)	12/16/2004 4:53:43 AM
From: DaiTN	Respond to of 5425

Under cross-examination by Breen, Michaelson said that he thought that if government information was shared on the Elgindy site, it must have been okay. Asked whether he thought that Elgindy was credible when he posted information which he said came from the FBI. ,"Not all the time....He lied all the time, exaggerated to make himself look good," Michaelson answered. Michaelson had testified Tuesday that he had no reasons to believe that Elgindy was not being truthful when he said he had confidential information. Asked about his different answer, Michaelson said "Yesterday, I don't know what I said yesterday. I was really tired." In this statement, Peter Michaelson portraits Anthony as a liar. "Are you saying that we should disregard your testimony (from Tuesday)," Assistant U.S. Attorney Breen asked Michaelson, who answered, "I rather you would." In this statement, Michaelson portraits himself as a liar (because he was tired). Reviewing his trading records, including some from an account at Canadian brokerage firm Union Securities, Michaelson said he did trade in the stock of companies for which Elgindy provided confidential information on the same days that the information was posted on the investing site. Under questioning, Michaelson also said that he purchased some of the shares of a block trade put together by Elgindy in the stock of Nuclear Solutions Inc. (NSOL). Prosecutors allege that Elgindy and others charged in the case extorted discounted stock from companies they targeted in exchange for halting their short selling of their shares. Nuclear Solutions is one of two companies that the government said was extorted by Elgindy and others charged in the case. And here, he admits he participated in the criminal enterprise by trading NSOL with confidential info, and purchased NSOL stocks from the block of shares that the prosecutors allege Anthony extorted from Paul Brown. He said all these on the stand and he had no lawyer representing him ????? ...And he supposed to be a defense witness???? I don't get it, ....I thought "Dumbo" is a Disney's character!!!