Skip to comments.Short-Seller Anthony Elgindy Arrested By FBI In San Diego
Posted on 05/22/2002 11:06:54 AM PDT by RummyChick
NEW YORK (Dow Jones)--Anthony Elgindy, the controversial short-seller and online stock commentator, has been arrested on charges of racketeering, insider trading and market manipulation, a government spokeswoman said Wednesday.
Jan Caldwell, a spokeswoman for the San Diego field office of the Federal Bureau of Investigation, said Elgindy, who lives in the San Diego area, was arrested at his business Tuesday.
Details of the charges against Elgindy weren't immediately available. A spokeswoman for the U.S. Attorney's office in Brooklyn, N.Y., fr
om which the charges originate, said the office would issue a statement about the Elgindy case soon.
Ongoing discussion at Silicon INvestor
What's so hard about reporting/investigating that info, since the IRS should have had the items reported by April 15th?
The more you dig the more you will see Anthony Elgindy's arrest involves a first class scandal with far reaching implications....
Other countries do not allow this. Those wishing to "bet" on a stock's fall should buy put options or sell naked calls. But that way they cannot manipulate the market.
This is a huge story because it also involves allegations of agents of using FBI databases . . . to track a grand jury investigation targeting the alleged scheme in exchange for cash.
My favorite story is the one that came out during the sentencing hearing for his mail fraud conviction (4 month sentence already served)..It concerned charity money donations during the Kosovo crisis. This guy is a real piece of work.
http://www.thesandiegochannel.com/sand/news/stories/news-147518520020522-140504.html That is probably 300,000 worth of vehicles. I wonder what the other two are that they seized. The talk over at Silicon Investor is that they is just the beginning. I think so, too. More will come out. This guy was being investigated by Canadian authorities for other matters related to short selling. How far up did the conspiracy go?
Short Seller Elgindy May Have Known Of Sep 11 -Prosecutor
SAN DIEGO (AP)--An Egyptian-born financial analyst charged in a
nationwide stock swindle may have known about the Sept. 11 terrorist
attacks and tried to profit from them, a federal prosecutor said
Amr I. "Tony" Elgindy telephoned his broker Sept. 10 and asked him
to liquidate his children's $300,000 trust account, Assistant U.S.
Attorney Ken Breen told a federal judge at Elgindy's detention
"He made a comment predicting the market would drop to 3,000" at a
time when the Dow Jones stock index was at 9,600, Breen said. "Perhaps
Mr. Elgindy had pre-knowledge of the Sept. 11 attacks. Instead of
trying to report it, he tried to profit from it."
Elgindy, 34, of Encinitas, was ordered held without bond on charges
of racketeering, extortion and obstruction of justice. Before issuing
the order, Magistrate Judge John Houston said he was going to
"disregard" the suggestion that Elgindy had anything to do with the
Elgindy, wearing a tan jumpsuit, didn't speak during the hourlong
His attorney, Jeanne Knight, said Elgindy did call his broker to
make a trade, but the timing was coincidental and the market had been
dropping for months.
"It seems like the government, for lack of factual evidence, has
decided to smear my client with terrorist innuendoes," Knight said.
"This is smacking of racial profiling."
Breen made his accusations as prosecutors tried to convince Houston
that Elgindy was a flight risk and should be denied bail.
Elgindy, one of five defendants in the case, was arrested May 22 on
an indictment issued by a grand jury in New York.
In exchange for money, two FBI agents used confidential databases to
provide Elgindy and other co-conspirators with information on publicly
traded companies, the indictment said.
Elgindy allegedly spread negative information about the companies on
his Web site and to subscribers of his e-mail newsletter,
InsideTruth.com, while betting that the companies' stock would go
In one case, a former FBI agent searched the agency's confidential
National Crime Information Center database and discovered the criminal
history of a top executive for a company called Nuclear Solutions, the
indictment said. The same day, Elgindy began sending e-mail calling
the executive "a convicted felon," then sold the company's stock
short, the papers said.
Earlier this week, FBI agents raided Elgindy's $2.2 million mansion.
Inside, agents said, they found tens of thousands of dollars in cash
and gold coins. The government is seeking to seize Elgindy's fleet of
cars, including a Rolls Royce, a Jaguar and a Humvee.
If convicted of all counts, Elgindy faces a maximum 65 years in
(END) DOW JONES NEWS 05-24-02
- - 03 58 PM EDT 05-24-02
He targeted a company called MHUT, put up a video opening a syringe, then claimed one of the tries resulted in being hit in the eye and they were considering suing. Of course, they never produced THAT video.
elgindy and friends at his seminar teaching people how to short
More illgotten gains
wonder what happens to Mary, his wife.