To: Janice Shell who wrote (89343 ) 1/14/2005 2:15:50 PM From: StockDung Respond to of 122087 =DJ Elgindy Defense Ends Closing Arguments; Govt Summary Next . . By Carol S. Remond . Of DOW JONES NEWSWIRES . NEW YORK (Dow Jones)--Anthony Elgindy's defense team ended its closing arguments Friday in a federal courtroom. Closing his three-day presentation in Brooklyn, N.Y., Barry Burke, a lawyer for Elgindy, called on jurors to find his client not guilty on all counts. Elgindy is charged with having conspired with former FBI Special Agent Jeffrey Royer to manipulate the shares of small companies. The two men were charged in a 33-count racketeering indictment with securities fraud, market manipulation, extortion and obstruction of justice. Burke told jurors the U.S. government has not met its burden of proof. He said that the prosecution's first witness, Derrick Cleveland, is a liar who can't be trusted. Cleveland was charged in the case and pleaded guilty to conspiracy to commit securities fraud and is cooperating with the government. Prosecutors "have been prepared to take Derrick Cleveland's lies hook line and sinker. They have been snookered," Burke told jurors. "Mr. Elgindy did not believe that what he was doing was illegal. Mr. Elgindy did not believe that Royer was corrupt," Burke said. The government alleged in a 10-week trial in the U.S. District Court for the Eastern District of New York that Royer stole information from FBI computers, which he shared with Elgindy and others, who colluded to manipulate the stock of companies they targeted. The government also alleged that Elgindy and Royer used that information to extort discounted shares from two companies. Elgindy and Royer are also accused with having obstructed a post-Sept. 11 investigation into suspicious trading that took place before the terrorist attacks on the U.S. That investigation was the genesis of the current charges. Prosecutor Kenneth Breen is expected to present the government's rebuttal after the lunch break. -By Carol S. Remond, Dow Jones Newswires; 201-938-2074; carol.remond@dowjones.com . (END) Dow Jones Newswires January 14, 2005 13:16 ET (18:16 GMT)- - 01 16 PM EST 01-14-05