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

To: EL KABONG!!! who wrote (860)	12/16/2004 11:18:32 PM
From: ravenseye	Read Replies (1) \| Respond to of 5425

First of all, the scammers set up the scam. Message 19078071 Weeks after taking the short positions, Elgindy would launch short-selling attacks on these companies by posting damaging information on his Web site, where he operated under the name "Anthony Pacific." Cleveland pleaded guilty to one charge and began cooperating with the government last year. The new indictment alleges that in an Internet chat room on Jan. 12, 2001, Elgindy discussed the FBI investigation of a company and told his subscribers not to discuss the matter publicly, warning that, "If you do you will be pros(ecuted)." Elgindy has pleaded not guilty. His lawyer, Gerald Lefcourt, will argue that his client's words were part of the overheated rhetoric of Internet chat rooms.

To: EL KABONG!!! who wrote (860)	12/17/2004 12:22:40 AM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 5425

I will now attempt the impossible... based on all the testimony so far, imagine what it might be like to be a juror in the Elgindy trial... Most likely I'd a) have never heard of the guy or his web site, b) have had some experience with the market but mostly casual, and c) probably claim to be open-minded about Muslims. The moment I heard the 9-11 reference, even though told to disregard it, I'd be tainted... thinking Elgindy was probably being targeted for somehow being connected to terrorists, but that the government was trying to nail him on other charges-- just like the government gets mobsters on tax evasion instead of murder. My first question to myself would be what the heck the FBI was thinking when they chose to work with someone they subsequently thought was connected to terrorism. Or, I might even think the FBI rushed to judgment about Elgindy being allied with terrorism and, in order to save face, figured they'd better find other charges to stick to him. Based just on what I've read, Elgindy likely comes off to the jurors as a flamboyant guy who brags about how rich and powerful he is. Yes, he has FBI connections. Yes, he has helped nail scam companies. But lots of what he says is just self-aggrandizement so one never knows what to believe. However -- and this is the key point -- Elgindy has been successful at making money. You could be randomly tossing darts at stock tickers for all anyone cares if your picks end up making money. To put in another way, you don't have to believe in magic to enjoy a magic show. My guess is that Elgindy's fate will hinge on his own testimony. I can't imagine he won't testify given he's really the only person who can explain the method to his madness. I expect his defense lawyer to play Elgindy's old 20/20 appearance and make the case his client was a successful investor shorting scams way before his FBI connections-- that his relationship with the FBI was a two-way street where he did most of the driving. If Elgindy is going to get pinched, my guess is it'll be on shaking down companies (if the news reports are accurate on the details). But I'm not at all convinced he'll be nailed on insider trading charges, despite the fact others have already pleaded guilty to them. My reasoning is that his lawyer could make a compelling argument that Elgindy only requested confidential records on company officials he knew from the start were likely dirty and -- and this is the key point -- likely would have shorted their companies anyway and made money doing so based on his loyal following. Being that the jurors likely associate insider trading to people buying on a stock tip or selling on bad news they hear from friends (e.g. Martha Stewart), I can see them not being able to grasp how insider trading laws might apply here. In any event, Elgindy has not yet testified, I have no knowledge one way or the other if he will or not, have never sat in the court room, so take everything I've said above with a grain of salt. - Jeff