Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: DaiTN who wrote (1645)	1/5/2005 9:32:39 AM
From: Louie_al-Arouri	Read Replies (1) \| Respond to of 5425

Ex-FBI Agent Admits Giving Data to Traders Tue Jan 4,12:29 PM ET Business - AP By MICHAEL WEISSENSTEIN, Associated Press Writer NEW YORK - A former FBI (news - web sites) agent admitted that he gave online stock traders confidential details of federal investigations, including a probe of the Sept. 11 terror attacks. One of the recipients was San Diego penny stock picker Anthony Elgindy. Elgindy was investigated by a Justice Department task force examining whether anyone might have known of the terrorists' plans and profited by selling vulnerable stocks just before the attacks, Jeffrey Royer said. Elgindy was not charged in connection with that probe, but an investigation into the ties between Elgindy and Royer led to racketeering, securities fraud and other charges against the two men. They are on trial together in federal court in Brooklyn. Taking the stand in his defense, Royer acknowledged Monday that he revealed the existence of FBI and SEC investigations, executives' criminal records and other sensitive information to Elgindy and associate Derrick Cleveland. He said the apparent violations were justified because Elgindy and Cleveland were stock-market experts who helped him develop evidence of financial wrongdoing. Prosecutors say the relationship was criminal. Elgindy was accused of paying Royer for the information and using it to manipulate stock prices and extort companies that were the subjects of investigations. When pressed by Assistant U.S. Attorney Seth Levine about apparent violations of FBI rules, Royer grew testy, asserting that he was an independent-minded agent who had the right to decide what information to reveal. "It's real easy for you to armchair quarterback when you don't have anything to do with the case," Royer told Levine. "Pursuant to a law-enforcement purpose, I can do anything I want with the files." Cleveland has pleaded guilty to conspiracy to commit securities fraud and testified against Elgindy and Royer. ----------------------- nypost.com TRIAL'S 9/11 TWIST By KATI CORNELL SMITH January 4, 2005 A former FBI agent, defending himself against charges he stole law-enforcement information to commit stock fraud, tried to turn the tables yesterday with a wild claim he could have prevented 9/11 if he was allowed do his job. Jeffrey Royer testified that early in 2001, his supervisors overreacted to a problem with an informant, and shut down a probe of a smuggling ring with ties to Hamas that had exploited security weaknesses on an Indian reservation bordering Canada. "I shelved it. C'est la vie," Royer, who retired from the FBI on Dec. 25, 2001, said flippantly. "Then 9/11 happened." The ex-agent told his lawyer, Lawrence Gerzog, that "the bureau had messed up" by taking the heat off a corrupt Customs official who could have helped terrorists enter the United States. Royer made the bizarre assertion as he denied charges that he helped stock guru Anthony "Pacific" Elgindy manipulate the market. Royer and Elgindy are co-defendants in the Brooklyn federal court trial. Royer claimed Elgindy needed confidential information to perform his work as an FBI informant — and credited him with launching several important probes, including one of suspicious stock trades on Sept. 10, 2001. But during cross-examination, Royer admitted other agents had told him Elgindy was actually a suspect in the terror probe — and that he still leaked protected FBI information to a close associate of the stock genius. Elgindy is on trial for using information about investigations into various companies to commit stock fraud and extortion — but has not been charged with any terror-related crime. Asked by Assistant U.S. Attorney Seth Levine if he knew he was violating his official oath by dispensing confidential law-enforcement information without permission, Royer said he was not in "junior high" and enjoyed "autonomy" as an agent. "I told them I would protect and serve the Constitution of the United States," Royer said bluntly. "I didn't say I would follow the rules of the FBI."