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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: greenspirit who wrote (887)	3/18/2006 6:12:41 PM
From: rrufff	Read Replies (1) \| Respond to of 5034

Thanks Michael - updated the Information Box at the top of this board.

To: greenspirit who wrote (887)	3/18/2006 6:22:17 PM
From: rrufff	Read Replies (1) \| Respond to of 5034

For those who claim that hedge funds don't need regulation and that shorties never scam. Have you often wondered how they get that information ahead of you? 2O 1 Q. • Mr. Daws, what is your plea to count 2 of the 2 superseding indictment, 02—589(5—2)? Guilty or not guilty. 3 A. Guilty, your Honor. 4 Q. Are you pleading guilty voluntarily and of your own free 5 will? 6 A. lam. 7 Q. This is a decision you have made with the benefit of 8 counsel after sometime that you conclude is in your best 9 interest? 10 A. Yes, your Honor. 11 Q. Has anyone forced you or threatened you in any way to 12 plead guilty? 13 A. No, they have not, your Honor. 14 Q. Has anybody given you assurance as to what I will do on 15 sentence? 16 A. No, your Honor, they have not. 17 Q. It’s alleged then that you and others conspired to 18 engage in securities fraud. were you involved in such a 19 conspiracy? 20 A. Yes, your Honor, I was. 21 Q. Tell me about it. 22 MR. BENJAMIN: Your Honor, with the court’s 23 permission we have prepared -- Mr. Daws has prepared a 24 written allocution which we have shared with the government 25 and we believe it’s acceptable to them and I would ask that 21 1 Mr. Daws be permitted to read the allocution that h~has 2 prepared. 3 Q. Go ahead, sir. 4 A. I used to work as portfolio manager at Gryphon Partners, 5 a hedge fund, from in or about December 1999 and continuing 6 through May 2002. individuals at Gryphon Partners, including 7 myself, were members of the AnthonyPacific.com website. 8 During that time period I regularly had contact with Anthony 9 Elgindy and, on occasion, with Derrick Cleveland and Jçffrey 10 Royer. In the course of discussing and researching 11 investment opportunities I became aware of government 12 investigations into certain publicly traded companies. I 13 knew that the source of some of this information was Jeff 14 Royer who at a certain point I understood was an FBI agent. 15 I was aware in certain instances that Royer had passed such 16 information to Cleveland and Elgindy and assumed that 17 Cleveland and Elgindy were both using the law-enforcement 18 information for securities trading and were passing the 19 information to others. At some point I also became aware 20 that Royer and Cleveland maintained a close personal 21 friendship. During some of the time period described above I 22 received such law-enforcement information from Cleveland, 23 Elgindy and Royer, some of which I passed to other traders. 24 some of the law-enforcement information was also posted on 25 the AnthonyPaciflc.com website, so that the AP site members 22 • 1 could trade based on information. 2 Even though I was thus, in some cases, knowingly in 3 possession of information that had been misappropriated from 4 government agencies and was both nonpublic and material, I 5 continued in certain instances to execute trades in the 6 stocks of some relevant companies and in some cases the 7 law-enforcement information informed my decision to trade. 8 At or around the times that law-enforcement 9 information appeared on the AP website, others at Gryp~ion 10 made trades in the some of the relevant stocks, independent 11 of me, and not at my direction. 12 I take full responsibility for my conduct and I 13 sincerely regret my actions in this regard. 14 Q. All right. 15 Going back to the basis of the conspiracy, that you 16 defined so well, there was an agreement of some sort to 17 engage in this activity? 18 A. Correct, your Honor. 19 Q. Now, you used the word misappropriated. Are you telling 20 me that you knew that Royer got this information 21 inappropriately from FBI files? 22 A. Or from other government agents, yes, sir. asensioexposed.com in response to Message 22270340