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

To: Jeffrey S. Mitchell who wrote (1576)	1/3/2005 11:01:52 PM
From: DaiTN	Read Replies (2) \| Respond to of 5425

01-03-05 08:29 PM EST (Updates with additional testimony, beginning in the fifth paragraph from the bottom of the story.) By Carol S. Remond Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Former Federal Bureau of Investigation Special Agent Jeffrey Royer testified Monday that he had a typical agent-informant relationship with Anthony Elgindy and Derrick Cleveland, and that his goal was to gather information about stock fraud. Royer told jurors that Cleveland and Elgindy were viable informants who " offered a very unique approach to information-gathering." Royer and Elgindy are standing trial in the U.S. District Court for the Eastern District of New York. They, and three others to be tried separately, are charged with several counts of securities fraud, market manipulation and extortion. The government alleges that Elgindy used a private investing Web site to share and trade on confidential information he obtained from Royer. Cleveland, who also was charged in the case, pleaded guilty to conspiracy to commit securities fraud and is cooperating with the government. The case resumed Monday after a 10-day holiday recess. Closing arguments are now scheduled to begin next week, and the case should go to jurors in the week of Jan. 18. Elgindy showed up in court Monday morning with a large bandage around his head, following an altercation with another inmate at the Metropolitan Detention Center, where he has been detained since April 2004 following his arrest after he tried to board a plane with fake identification. Cleveland testified for the government that he had an agreement with Royer to share 50-50 any trading profit generated from confidential information he received from the agent. But Royer in court Monday told jurors that he never had any conversation with Cleveland about trading on information he shared with him. Royer said that he was very interested in the market and trading, and that he saw Cleveland, who at one time was an FBI informant for the agent, as a valuable source of information. Royer told jurors that his desire to quash securities fraud was fueled by his own losses in a company called Webtel. Royer said he invested about $82,000 of his own and his friends' and family's money, which was lost when the company blew up. Royer said he asked Cleveland to invest some short-term money that he got from a settlement of his Webtel losses and that Cleveland returned the same exact amount, $15,000, a few weeks later when the agent asked him for it. Royer said he contracted Cleveland as an FBI informant to assist in an investigation into a fraudulent company called Broadband Wireless International Corp., which traded under the ticker symbol BBAN. Royer said that at one time he was himself an investor in Broadband Wireless but that he sold the stock when he realized the company's president, Don Knight, was under investigation. The former FBI agent said he was putting together in 2000 a proposal for a government task force that would have included the use of undercover informants to detect securities fraud. Royer said he wanted to recruit Cleveland and Elgindy for the job. Royer said his proposal mirrored an undercover investigation out of the Newark, N.J., FBI office. Royer said he had contact with the agent in charge there and was putting together a similar proposal. Royer said he took some documents related to the Newark securities fraud investigation to San Diego in February 2001 when he went to visit Elgindy to recruit him. These documents included confidential files obtained from the FBI database, some of which were seized form Elgindy's office at the time of his arrest. Royer said he continued working on putting together his task force proposal after he was taken off the Broadband Wireless investigation in Oklahoma City and transferred to the Gallup, N.M., FBI office. "It needed to be done. There was no limit to how much (Elgindy and other members of his investing Web site) could help," Royer said. Asked by his lawyer why he provided detailed information about an ongoing Securities and Exchange Commission investigation into a scam company called SeaView, Royer explained that it is standard procedure for FBI agents working with undercover informants. "I told Derrick about the SEC information so that they knew exactly what they had to do. You give; you get back. The more focused (information) you give, the more focused (information) you get back," Royer testified. Royer said he started contemplating leaving the FBI in April 2001 because of his desire to move to Denver to be close to his children. He said that at that time he began talking to Elgindy about his plan to hire a private investigator to help uncover stock fraud. Royer said that he discussed his financial woes with Elgindy but that the short seller never offered to lend him money. The former agent said he wanted to testify in his defense because he wants to make things right. Royer said FBI agents told him after his arrest in 2002 that he was a dirty agent and that he had accepted $30,000 in bribes which originated from Elgindy. The government had first alleged that wire transfers totaling about $30,000 from Cleveland to Royer were payoffs. But the money turned out to be Royer's money and a loan from Cleveland for Royer to purchase a car. Royer had been repaying that loan to Cleveland before his arrest. Under cross examination by assistant U.S. attorney Seth Levine, Royer agreed that he had provided non-public law enforcement information gathered from FBI databases or from SEC employees. But the former agent insisted he only did that in order to secure information in return from both traders. "In the real world, that's what you do to get information. That's how it works," Royer told Levine. Royer's testimony and cross examination drew quite a crowd Monday with several FBI agents and other curious people in attendance in the Brooklyn courtroom. Royer's cross examination is expected to continue Tuesday. -By Carol S. Remond, Dow Jones Newswires; 201-938-2074; carol.remond@ dowjones.com Dow Jones Newswires 01-03-05 2029ET Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved. news.morningstar.com

To: Jeffrey S. Mitchell who wrote (1576)	1/3/2005 11:15:07 PM
From: Buckey	Respond to of 5425

JEFF - I see we are on the same page 100% The best investment is the one you make in your own company. I am making about 50-60% of what I made in the corporate world but am building up a group of companies from basically SFA to a nice small corporation. It is my largest investment by a country mile

To: Jeffrey S. Mitchell who wrote (1576)	1/3/2005 11:22:58 PM
From: DaiTN	Read Replies (1) \| Respond to of 5425

You give Tony too much credit. Tony was not doing all this to expose scammy companies. He did it to inflate his wallet. If it was for the sole purpose of exposing scams, why did he back off from exposing SEVU after receiving a bundle of shares? Not only that, Tony used the sensitive info he obtained from Royer, shared it with his members to trade for profit. And in return, received kick back in the form of subscription fees. He pretty much sold the info to his sheeples. If you don't call that a criminal act, I don't know what is.

To: Jeffrey S. Mitchell who wrote (1576)	1/4/2005 12:39:31 AM
From: Bear Down	Read Replies (1) \| Respond to of 5425

I would like to read the transcript of Tony's probation officer's testimony. From what I read it seems Tony relayed everything he was doing to his PO. It would be hard for me as a juror to convict someone who had the ok from his PO and from an FBI contact. If you can't believe the government officials you are dealing with, who can you believe ??? I never heard a ruling on Elgindy's motion to dismiss based on entrappment by estopple. Apparantly denied :)