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Dave, I'm very sorry to hear about your brother...you and your family are in my prayers.
This dude on RB can't suffer dumb, lazy bashers..LOLOLOLOLOL!
By: room-with-a-view
11 Sep 2004, 07:24 PM EDT
Msg. 18698 of 18699
Jump to msg. #
az6fan & 300here - here's how you can get answers to your questions. why don't the two of you lazy fuggs pick up the phone and dial (909) 799-3440 and talk to the IR? she tells it straight, not hiding a damn thing - 13 billion AS, 7 billion OS and usci in talks with oil companies. the only thing worse than a sniveling idiot, is a sniveling idiot with no incentive to find out what they keep bitching about. what's the problem with you two dipshits anyway, don't want to pull your dialing finger out of your ass and do it?
Howdy, I PMed you my answer.
Thanks bill. I'm ready for another run. Keep it coming.
howdy i spoke to a market maker last week, he told me that CMKX could be shorted, and agreed that it looked like a big naked position was being held by NITE..I don't think he was shittin me.
Sad dedicated basher to one stock...LOLOL!
Dude, MM's are always short! It's how they create a market. Naked shorting is a different animal and absolutely illegal..and yes CMKX has been naked shorted to bits.
part2
41. In furtherance of the conspiracy and to effect the
objectives thereof, the defendants AMR I. ELGINDY, JEFFREY A.
ROYER, DERRICK W. CLEVELAND, TROY M. PETERS and LYNN WINGATE, and
their coconspirators committed and caused to be committed the
following:
OVERT ACTS
Payments to ROYER
a. On or about November 28, 2000, the defendant
DERRICK W. CLEVELAND wired $8,500.00 to the account of the
defendant JEFFREY A. ROYER.
b. On or about January 30, 2001, the defendant
DERRICK W. CLEVELAND wired $5,000.00 to the account of the
defendant JEFFREY A. ROYER.
c. On or about May 22, 2001, the defendant
DERRICK W. CLEVELAND wired $9,925.00 to the account of the
defendant JEFFREY A. ROYER.
d. On or about May 31, 2001, the defendant
DERRICK W. CLEVELAND wired $7,000.00 to the account of the
defendant JEFFREY A. ROYER.
18
Company No. 1
e. On or about December 15, 2000, the defendant
AMR I. ELGINDY short sold the stock of a company listed on the
Over the Counter Bulletin Board ("Company No. 1").
f. On January 2, 2001, the defendant JEFFREY A.
ROYER searched the NCIC database and found criminal history
information regarding the president of Company No. 1.
g. On January 3, 2001, the defendant AMR I.
ELGINDY issued a research report regarding Company No. 1, which
disclosed its president's criminal history.
h. On or about January 8, 2001, the defendant
AMR I. ELGINDY short sold the stock of Company No. 1.
Company No. 2
i. On or about August 9, 2001, the defendant
JEFFREY A. ROYER searched the ACS database and accessed nonpublic
information concerning another company listed on the Over the
Counter Bulletin Board ("Company No. 2").
j. On or about August 17, 2001, the defendant
DERRICK W. CLEVELAND short sold the stock of Company No. 2.
k. On or about August 21, 2001, the defendant
AMR I. ELGINDY short sold the stock of Company No. 2.
Company No. 3
l. On or about August 11, 2001, the defendant
JEFFREY A. ROYER searched the ACS database and accessed nonpublic
19
information concerning another company listed on the Over the
Counter Bulletin Board ("Company No. 3").
m. On or about August 14, 2001, the defendant
DERRICK W. CLEVELAND short sold the stock of Company No. 3.
Company No. 4
n. On or about September 19, 2001, the defendant
JEFFREY A. ROYER searched the ACS database and accessed nonpublic
information concerning another company listed on the Over the
Counter Bulletin Board ("Company No. 4") in this regard.
o. On or about September 20, 2001, the defendant
AMR I. ELGINDY short sold the stock of Company No. 4.
Nuclear Solutions
p. On December 19, 2001, at approximately 11:19
a.m. (Eastern Standard Time), the defendant JEFFREY A. ROYER
searched the NCIC database and found criminal history information
regarding Paul Brown, the founder of Nuclear Solutions, a company
listed on the Over the Counter Bulletin Board.
q. On December 19, 2001, at approximately 1:31
p.m. (Eastern Standard Time), the defendant AMR I. ELGINDY sent
an e-mail to his subscribers that stated: "NSOL - CEO, Dr. Paul
Maurice Brown, is a convicted felon ..."
r. On or about December 20, 2001 the defendant
AMR I. ELGINDY and others, began posting information regarding
20
Paul Brown’s alleged criminal record on Internet bulletin boards
and chat rooms.
Company No. 5
s. On or about March 4, 2002, the defendant LYNN
WINGATE searched the ACS database and accessed nonpublic
information concerning the Chief Executive Officer of a company
listed on the NASDAQ National Market System ("Company No. 5").
t. On or about March 4, 2002, after the
defendant LYNN WINGATE’s ACS search described in overt act (s),
WINGATE telephoned the defendant JEFFREY A. ROYER.
B. Securities Fraud Conspiracy - Market Manipulation
42. The allegations contained in paragraphs 1 through
32 and 37 through 41 are realleged and incorporated as if fully
set forth herein.
43. In or about and between November 2000 and May
2002, both dates being approximate and inclusive, the defendants
AMR I. ELGINDY, also known as “Tony Elgindy” and “Anthony
Pacific,” JEFFREY A. ROYER, DERRICK W. CLEVELAND, TROY M. PETERS
and LYNN WINGATE, together with others, did knowingly and
willfully conspire to use and employ manipulative and deceptive
devices and contrivances directly and indirectly, by use of means
and instrumentalities of interstate commerce and the mails, in
contravention of Rule 10b-5 of the Rules and Regulations of the
United States Securities and Exchange Commission (Title 17, Code
21
of Federal Regulations, Section 240.10b-5), and directly and
indirectly to (a) employ devices, schemes and artifices to
defraud; (b) make untrue statements of material facts and omit to
state material facts necessary in order to make the statements
made, in light of the circumstances under which they were made,
not misleading; and (c) engage in acts, practices and a course of
business which would and did operate as a fraud and deceit upon
members of the investing public, in connection with purchases and
sales of various securities, in violation of Title 15, United
States Code, Sections 78j(b) and 78ff, all in violation of Title
18, United States Code, Section 371.
44. It was a part of the conspiracy that between
November 2000 to May 2002, both dates being approximate and
inclusive, the defendants AMR I. ELGINDY, DERRICK W. CLEVELAND
and JEFFREY A. ROYER, together with others, devised, implemented
and oversaw a fraudulent scheme to deflate artificially the price
of various companies’ stock that they had short sold and then to
profit by buying it back later at a lower price. ELGINDY,
CLEVELAND, ROYER and others sought to accomplish their
manipulation by coordinating the release of negative information
with short selling in a manner designed to exaggerate the
negative market sentiment for the stock.
45. It was further part of the conspiracy that the
AnthonyPacific.com subscribers received the information and
22
recommendations first, so that they could position themselves to
profit if the market reacted to the exaggerated negative market
sentiment for the stocks, and so that a portion of their profits
would be paid back to the defendants AMR I. ELGINDY in the form
of subscription fees.
46. In furtherance of the conspiracy and to effect the
objectives thereof, the defendants AMR I. ELGINDY, DERRICK W.
CLEVELAND and JEFFREY A. ROYER, and their coconspirators
committed and caused to be committed the following:
OVERT ACTS
a. On December 19, 2001, at approximately 11:19
a.m. (Eastern Standard Time), the defendant JEFFREY A. ROYER
searched the NCIC database and found criminal history information
regarding Paul Brown, the founder of Nuclear Solutions, one of
the Targeted Companies.
b. On December 19, 2001, at approximately 1:31
p.m. (Eastern Standard Time), the defendant AMR I. ELGINDY sent
an e-mail to his subscribers that stated: "NSOL - CEO, Dr. Paul
Maurice Brown, is a convicted felon ..."
c. On or about December 20, 2002, the defendant
AMR I. ELGINDY and others, began posting information regarding
Paul Brown’s alleged criminal record on Internet bulletin boards
and chat rooms.
23
d. On December 22, 2001, the defendant AMR I.
ELGINDY sent an e-mail to his subscribers that stated: "Convicted
Felon Brown ... has history of lying & fraud..."
e. On or about December 24, 2001, the defendant
AMR I. ELGINDY short sold the stock of Nuclear Solutions.
f. On December 26, 2001,the defendant AMR I.
ELGINDY sent an e-mail to his subscribers that stated: "NSOL -
info on [a Nuclear Solutions executive] the scumbag [attorney]
... has been disbarred..."
g. On or about December 27, 2001, the defendant
AMR I. ELGINDY sent an e-mail to his subscribers that stated:
"NSOL -- if u are short you need to [private message] me how
many."
h. On or about January 2, 2001, the defendant
AMR I. ELGINDY short sold the stock of Nuclear Solutions.
i. On or about January 3, 2002, the defendant
AMR I. ELGINDY sent an e-mail to his subscribers that stated:
"NSOL -- short 20% @ 2.05 (add).
j. On or about January 3, 2001, the defendant
AMR I. ELGINDY short sold the stock of Nuclear Solutions.
k. On or about January 9, 2001, the defendant
DERRICK W. CLEVELAND short sold the stock of Nuclear Solutions.
l. On or about January 16, 2001, the defendant
AMR I. ELGINDY short sold the stock of Nuclear Solutions.
24
m. On or about January 24, 2001, the defendant
AMR I. ELGINDY short sold the stock of Nuclear Solutions.
n. On or about January 25, 2001, the defendant
AMR I. ELGINDY short sold the stock of Nuclear Solutions.
o. On or about January 30, 2002, the defendant
AMR I. ELGINDY in a chat room discussion with his subscribers,
stated "We are pulling out of NSOL" and "NSOL <--- coverage
[terminated] for good."
Racketeering Act Two
(Extortion)
47. The defendants AMR I. ELGINDY, JEFFREY A. ROYER,
DERRICK W. CLEVELAND and TROY M. PETERS, and other members and
associates, committed the following acts involving extortion, any
one of which alone constitutes the commission of Racketeering Act
Two.
A. Extortion Conspiracy
48. The allegations contained in paragraphs 1 through
32, 37 through 41 and 44 through 46 are realleged and
incorporated as if fully set forth herein.
49. In or about and between December 2001 and February
2002, both dates being approximate and inclusive, the defendants
AMR I. ELGINDY, also known as “Tony Elgindy” and “Anthony
Pacific,” JEFFREY A. ROYER, DERRICK W. CLEVELAND and TROY M.
PETERS, and others, did knowingly and intentionally conspire to
obstruct, delay and affect commerce, and the movement of articles
25
and commodities in commerce, by extortion, as that term is
defined in Title 18, United States Code, Section 1951(b)(2), in
that the defendants and others conspired to obtain, through
extortionate demands, property, to wit, stock, with the consent
of the owner of such stock, which consent was to be induced by
the wrongful use of actual and threatened force, violence and
fear.
B. Extortion
50. The allegations contained in paragraphs 1 through
32, 37 through 41 and 44 through 46 are realleged and
incorporated as if fully set forth herein.
51. In or about and between December 2001 and February
2002, both dates being approximate and inclusive, the defendants
AMR I. ELGINDY, also known as “Tony Elgindy” and “Anthony
Pacific,” JEFFREY A. ROYER, DERRICK W. CLEVELAND and TROY M.
PETERS, and others, did knowingly and intentionally obstruct,
delay and affect commerce, and the movement of articles and
commodities in commerce, by extortion, as that term is defined in
Title 18, United States Code, Section 1951(b)(2), in that the
defendants and others obtained, through extortionate demands,
property, to wit, stock, with the consent of the owner of such
stock, which consent was to be induced by the wrongful use of
actual and threatened force, violence and fear.
26
Racketeering Act Three
(Obstruction of Justice)
52. The allegations contained in paragraphs 1 through
32, 37 through 41 and 44 through 46 are realleged and
incorporated as if fully set forth herein.
53. In or about and between October 2001 and May 2002,
both dates being approximate and inclusive, the defendants AMR I.
ELGINDY, also known as “Tony Elgindy” and “Anthony Pacific,”
JEFFREY A. ROYER and LYNN WINGATE, together with others, did
knowingly, intentionally and corruptly endeavor to influence,
obstruct and impede the due administration of justice with
respect to matters before a grand jury in the Eastern District of
New York and elsewhere, by ROYER and WINGATE accessing a
confidential FBI database to gain information concerning the EDNY
Grand Jury Investigation to provide it to ELGINDY and others, in
violation of Title 18, United States Code, Section 1503.
(Title 18, United States Code, Sections 1962(d), 1963
and 3551 et seq.)
COUNT TWO
(Securities Fraud Conspiracy - Insider Trading)
54. The allegations contained in paragraphs 1 through
32, 37 through 41 and 44 through 46 are realleged and
incorporated as if fully set forth herein.
55. In or about and between November 2000 and May
2002, both dates being approximate and inclusive, within the
27
Eastern District of New York and elsewhere, the defendants AMR I.
ELGINDY, also known as “Tony Elgindy” and “Anthony Pacific,”
JEFFREY A. ROYER, DERRICK W. CLEVELAND, TROY M. PETERS and LYNN
WINGATE, together with others, did knowingly and willfully
conspire to use and employ manipulative and deceptive devices and
contrivances directly and indirectly, by use of means and
instrumentalities of interstate commerce and the mails, in
contravention of Rule 10b-5 of the Rules and Regulations of the
United States Securities and Exchange Commission (Title 17, Code
of Federal Regulations, Section 240.10b-5), and directly and
indirectly to (a) employ devices, schemes and artifices to
defraud; (b) make untrue statements of material facts and omit to
state material facts necessary in order to make the statements
made, in light of the circumstances under which they were made,
not misleading; and (c) engage in acts, practices and a course of
business which would and did operate as a fraud and deceit upon
members of the investing public, in connection with purchases and
sales of securities, in violation of Title 15, United States
Code, Sections 78j(b) and 78ff.
56. It was a part of the conspiracy that between
November 2000 to May 2002, both dates being approximate and
inclusive, the defendants AMR I. ELGINDY and DERRICK W.
CLEVELAND, solicited, obtained and received from the defendant
JEFFREY A. ROYER, and, later, ELGINDY, CLEVELAND and ROYER,
28
solicited, obtained and received from the defendant LYNN WINGATE
material, non-public information concerning Targeted Companies
which they then used to make decisions whether to purchase and
sell the stocks of the Targeted Companies.
(Title 18, United States Code, Section 371).
COUNT THREE
(Securities Fraud Conspiracy - Market Manipulation)
57. The allegations contained in paragraphs 1 through
32, 37 through 41, 44 through 46 and 56 are realleged and
incorporated as if fully set forth herein.
58. In or about and between November 2000 and May
2002, both dates being approximate and inclusive, within the
Eastern District of New York and elsewhere, the defendants AMR I.
ELGINDY, also known as “Tony Elgindy” and “Anthony Pacific,”
JEFFREY A. ROYER, DERRICK W. CLEVELAND, TROY M. PETERS and LYNN
WINGATE, together with others, did knowingly and willfully
conspire to use and employ manipulative and deceptive devices and
contrivances directly and indirectly, by use of means and
instrumentalities of interstate commerce and the mails, in
contravention of Rule 10b-5 of the Rules and Regulations of the
United States Securities and Exchange Commission (Title 17, Code
of Federal Regulations, Section 240.10b-5), and directly and
indirectly to (a) employ devices, schemes and artifices to
defraud; (b) make untrue statements of material facts and omit to
state material facts necessary in order to make the statements
29
made, in light of the circumstances under which they were made,
not misleading; and (c) engage in acts, practices and a course of
business which would and did operate as a fraud and deceit upon
members of the investing public, in connection with purchases and
sales of securities, in violation of Title 15, United States
Code, Sections 78j(b) and 78ff.
59. It was a part of the conspiracy that between
November 2000 to May 2002, both dates being approximate and
inclusive, the defendants AMR I. ELGINDY, DERRICK W. CLEVELAND
and JEFFREY A. ROYER, together with others, devised, implemented
and oversaw a fraudulent scheme to deflate artificially the price
of various companies’ stock that they had short sold and then to
profit by buying it back later at a lower price for return to the
lender.
(Title 18, United States Code, Section 371).
COUNT FOUR
(Extortion Conspiracy)
60. The allegations contained in paragraphs 1 through
32, 37 through 41, 44 through 46, 56 and 59 are realleged and
incorporated as if fully set forth herein.
61. In or about and between December 2001 and February
2002, both dates being approximate and inclusive, the defendants
AMR I. ELGINDY, also known as “Tony Elgindy” and “Anthony
Pacific,” JEFFREY A. ROYER, DERRICK W. CLEVELAND and TROY M.
PETERS, and others, did knowingly and intentionally conspire to
30
obstruct, delay and affect, commerce, and the movement of
articles and commodities in commerce, by extortion, as that term
is defined in Title 18, United States Code, Section 1951(b)(2),
in that the defendants and others conspired to obtain, through
extortionate demands, property, to wit, stock, with the consent
of the owner of such stock, which consent was to be induced by
the wrongful use of actual and threatened force, violence and
fear.
(Title 18, United States Code, Sections 1951(a)).
COUNT FIVE
(Obstruction of Justice Conspiracy)
62. The allegations contained in paragraphs 1 through
32, 37 through 41, 44 through 46, 56, 59 and 64 are realleged and
incorporated as if fully set forth herein.
63. In or about and between October 2001 and May 2002,
both dates being approximate and inclusive, within the Eastern
District of New York and elsewhere, the defendants AMR I.
ELGINDY, also known as “Tony Elgindy” and “Anthony Pacific,”
JEFFREY A. ROYER and LYNN WINGATE, together with others, did
conspire to knowingly, intentionally and corruptly endeavor to
influence, obstruct and impede the due administration of justice
with respect to matters before a grand jury in the Eastern
District of New York and elsewhere, by ROYER and WINGATE
accessing a confidential FBI database to gain information
31
concerning the investigation to provide it to ELGINDY, in
violation of Title 18, United States Code, Section 1503.
64. In furtherance of the conspiracy, and for the
purpose of effecting the objectives thereof, within the Eastern
District of New York and elsewhere, the defendants AMR I.
ELGINDY, JEFFREY A. ROYER and LYNN WINGATE, and their
coconspirators committed and caused to be committed, among
others, the following:
OVERT ACTS
a. On or about October 4, 2001, the defendant
JEFFREY A. ROYER searched the ACS database for references to
"Elgindy" and an individual associated with the defendant AMR I.
ELGINDY.
b. On or about October 12, 2001, the defendant
JEFFREY A. ROYER searched the ACS database for references to
"Elgindy, Anthony."
c. On or about October 17, 2001, the defendant
JEFFREY A. ROYER searched the ACS database for references to
"Elgindy" and "Royer, Jeff."
d. On or about October 20, 2001, the defendant
JEFFREY A. ROYER searched the ACS database for references to
"Elgindy, Anthony" and an individual associated with the
defendant AMR I. ELGINDY.
32
e. On or about October 30, 2001, the defendant
JEFFREY A. ROYER searched the ACS database for references to
"Elgindy, Anthony."
f. On or about November 6, 2001, the defendant
JEFFREY A. ROYER searched the ACS database for references to
"Royer" and "Royer, J."
g. On or about November 7, 2001, the defendant
JEFFREY A. ROYER searched the ACS database for references to
"Elgindy, Anthony."
h. On or about April 18, 2002, the defendant LYNN
WINGATE searched the ACS database for references to "Elgindy" and
"Royer."
i. On or about April 18, 2002, after searching
the ACS database for references to "Elgindy, Anthony" and "Royer,
Jeff," the defendant LYNN WINGATE telephoned the defendant
JEFFREY A. ROYER.
j. On or about April 18, 2002, the defendant
JEFFREY A. ROYER telephoned the defendant AMR I. ELGINDY.
k. On or about April 23, 2002, the defendant LYNN
WINGATE searched the ACS database for references to "Wingate."
l. On or about April 23, 2002, the defendant
JEFFREY A. ROYER telephoned the defendant AMR I. ELGINDY.
(Title 18, United States Code, Section 371).
33
COUNT SIX
(Obstruction of Justice)
65. The allegations contained in paragraphs 1 through
32, 37 through 41, 44 through 46, 56, 59 and 64 are realleged and
incorporated as if fully set forth herein.
66. In or about and between October 2001 and May 2002,
both dates being approximate and inclusive, within the Eastern
District of New York and elsewhere, the defendants AMR I.
ELGINDY, also known as “Tony Elgindy” and “Anthony Pacific,”
JEFFREY A. ROYER and LYNN WINGATE, together with others, did
knowingly, intentionally and corruptly influence, obstruct and
impede, and endeavor to influence, obstruct and impede, the due
administration of justice with respect to matters before a grand
jury in the Eastern District of New York and elsewhere.
(Title 18, United States Code, Section 1503).
A TRUE BILL
FOREPERSON
ALAN VINEGRAD
UNITED STATES ATTORNEY
EASTERN DISTRICT OF NEW YORK
Famous shorter's crimes in detail (part1)
EOC:KMB
F. #2001R02074
ELGINDY.IND1
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
- - - - - - - - - - - - - - - - X
UNITED STATES OF AMERICA I N D I C T M E N T
- against - Cr. No.
(T. 15, U.S.C., §§
AMR I. ELGINDY, 78j(b) and 78ff;
also known as “Tony Elgindy” T. 18, U.S.C., §§
and “Anthony Pacific,” 371, 1503, 1951(a),
JEFFREY A. ROYER, 1962(d), 1963, 2 and
DERRICK W. CLEVELAND, 3551 et seq.)
TROY M. PETERS and
LYNN WINGATE,
Defendants.
- - - - - - - - - - - - - - - - X
THE GRAND JURY CHARGES:
At all times relevant to this Indictment, unless
otherwise indicated:
INTRODUCTION
The Short Selling Scheme
1. The defendant AMR I. ELGINDY, also known as Tony
Elgindy and Anthony Pacific, was a trader and financial analyst
who “short sold” shares of stock of various companies whose
respective stock prices appeared to be vulnerable to the release
of negative news and selling pressure. Short sales involve
“borrowing” stock from another party and selling it, with an
agreement to return the stock to the other party at a later date,
thereby betting that the stock’s price will fall, allowing the
2
borrower to buy the stock back later at a lower price and return
the stock to the lender. Thus, short sellers profit from
decreases in the price of a stock that they have sold short.
Conversely, short sellers lose money when the price of a stock
that they have sold short rises.
2. After the defendant AMR I. ELGINDY short sold the
stock of certain companies, ELGINDY and others engaged in various
manipulative activities designed to lower the price of such
stock, including spreading negative information about the
companies and encouraging others to short sell the stock in a
manner that would yield large profits to ELGINDY and others.
3. In order to maximize the adverse impact on the
prices of certain stocks that he short sold, and, therefore,
maximize his gain, the defendant AMR I. ELGINDY communicated with
other short sellers nationwide, including short sellers within
the Eastern District of New York, via the Internet. For this
purpose, ELGINDY founded a business named Pacific Equity
Investigations, based in San Diego, California, which operated a
public investment website, named InsideTruth.com, a subscription
e-mail newsletter and a subscription-based investment website,
named AnthonyPacific.com. ELGINDY has used these means of
communications to spread negative information and to advise
others to join him in short selling the stock of certain
3
companies (hereinafter referred to collectively as “Targeted
Companies”).
4. The defendant AMR I. ELGINDY released information
and his short selling recommendations first to his paying
subscribers, and only later, and not in all cases, to the
investing public. ELGINDY initially communicated negative news
about the Targeted Companies and his short selling
recommendations to the subscribers of AnthonyPacific.com, who
paid him up to $600.00 per month, so that these subscribers would
have the opportunity to short sell stocks before the public
release of ELGINDY’s recommendations. ELGINDY next advised
subscribers of his e-mail newsletter, who paid up to $100.00 per
month. In some instances ELGINDY also published the negative
information and his recommendations on his public website
InsideTruth.com. Once the information was publicly available,
ELGINDY and his subscribers also posted it on various Internet
bulletin boards, chat rooms and on related websites, often
assuming fictitious identities to do so. The widespread
dissemination of this negative information had the intended goal
of exaggerating the downward pressure on the stock prices of
Targeted Companies.
5. The defendants DERRICK W. CLEVELAND and TROY
PETERS were short sellers who assisted the defendant AMR I.
4
ELGINDY in the operation of Pacific Equity Investigations and its
newsletter and websites.
Market Manipulation
6. Often, after short selling the stock of a Targeted
Company, the defendants AMR I. ELGINDY, TROY PETERS and DERRICK
W. CLEVELAND, together with others, coordinated the release of
negative, and sometimes false, information with short selling in
a manner designed to exaggerate the negative market sentiment for
the stock. ELGINDY’s paid subscribers received the information
and recommendations first, so that they could position themselves
to profit if the broader market reacted to the exaggerated
negative market sentiment for the stocks. The subscribers,
including subscribers in the Eastern District of New York, passed
a portion of their profits back to ELGINDY in the form of
subscription fees.
7. The defendants AMR I. ELGINDY and TROY PETERS,
together with others, sometimes reported negative information
about the Targeted Companies to the U.S. Securities and Exchange
Commission (“SEC”) and the Federal Bureau of Investigation
(“FBI”) in order to initiate or hasten regulatory and law
enforcement action, which they knew would cause the stock prices
to fall sharply once such action became public.
5
The FBI Tipper
8. The defendants AMR I. ELGINDY and DERRICK W.
CLEVELAND, together with others, traded on material, non-public
information that they obtained from the defendant JEFFREY A.
ROYER.
9. The defendant JEFFREY A. ROYER was an FBI Special
Agent from November 12, 1996 through December 21, 2001. From
March 7, 1997 through November 6, 2000, ROYER was assigned to the
FBI’s Field Office in Oklahoma City, Oklahoma. On November 6,
2000, ROYER was transferred to the FBI’s Resident Office in
Gallup, New Mexico.
10. While the defendant JEFFREY A. ROYER was assigned
in Oklahoma, in or about 1999, the defendant DERRICK W. CLEVELAND
began providing ROYER with information concerning individuals and
companies that CLEVELAND claimed were engaged in securities
fraud.
11. In late 1999, the defendant JEFFREY A. ROYER was
introduced by the defendant DERRICK W. CLEVELAND to the defendant
AMR I. ELGINDY. ELGINDY then began providing ROYER with negative
information concerning the companies that ELGINDY had short sold
or was considering short selling. Because ROYER was not assigned
to investigate securities fraud, ROYER referred some of ELGINDY’s
information to other FBI offices so that criminal investigations
would be initiated.
6
12. Beginning in and around 2000, the defendants AMR
I. ELGINDY and DERRICK W. CLEVELAND corruptly induced the
defendant JEFFREY A. ROYER to provide them with confidential law
enforcement information concerning companies that ELGINDY,
CLEVELAND and ELGINDY’s subscribers had short sold or were
considering short selling. ROYER obtained the information that
he provided to ELGINDY, CLEVELAND and others from the FBI’s
National Crime Information Center database (“NCIC”), which
contained confidential criminal history information, and the
FBI’s Automated Case Support database (“ACS”), which contained
confidential criminal investigation information. Access to these
confidential databases is strictly limited to law enforcement
personnel for law enforcement purposes.
13. As part of the corrupt inducement to the defendant
JEFFREY A. ROYER, the defendant DERRICK W. CLEVELAND wired funds
to ROYER, while ROYER was an FBI Special Agent, in the following
amounts on the following dates: (1) $8,500 on November 28, 2000;
(2) $5,000 on January 30, 2001; (3) $9,925 on May 22, 2001; and
(4) $7,000 on May 31, 2001. These payments were not reported to
the FBI.
14. The defendants AMR I. ELGINDY and DERRICK W.
CLEVELAND, together with others, used the confidential law
enforcement information that they obtained from the defendant
JEFFREY A. ROYER in order to make decisions whether to buy, hold
7
or sell the stocks of the companies to which the information was
relevant.
15. After short selling the stocks of such Targeted
Companies, the defendants AMR I. ELGINDY and DERRICK W.
CLEVELAND, and others, also disseminated confidential law
enforcement information to other short sellers, in the Eastern
District of New York and elsewhere, via the Internet, as
described above, in order to encourage them to short sell the
stock as well. As described above, ELGINDY’s paid subscribers
received the information and recommendations first so that they
could position themselves to profit if the market reacted to the
public release of the information.
Extortion
16. As a result of the above, the defendant AMR I.
ELGINDY, cultivated the perception that he had the ability to
devastate a Targeted Company’s stock price. ELGINDY, together
with the defendants TROY PETERS and DERRICK W. CLEVELAND, and
others, used that perception to extort cheap or free shares of
stock from the insiders of Targeted Companies in exchange for
agreeing no longer to short sell the companies’ stock or spread
negative information about the companies.
17. The defendants AMR I. ELGINDY and TROY PETERS,
together with others, used the confidential law enforcement
information obtained from the defendant JEFFREY A. ROYER to
8
assess whether the Targeted Companies were susceptible to
extortion, based upon the premise that companies that are in
peril of regulatory or criminal investigation would be
disinclined to complain to law enforcement about such
extortionate demands. Sometimes extortionate demands were
coupled with threats to report a company’s activities to the SEC
or FBI.
18. Once the extortionate demands of the defendants
AMR I. ELGINDY and TROY PETERS were satisfied, ELGINDY then
communicated to his subscribers, in the Eastern District of New
York and elsewhere, via the Internet, as described above, that
they should stop short selling, cover their short positions by
buying stock and refrain from further dissemination of negative
information regarding the targeted company.
Obstruction of Justice
19. On or about September 18, 2001, the U.S.
Department of Justice, Criminal Division set up a Capital Markets
Unit within a Task Force to investigate certain financial and
other criminal offenses.
20. On or about October 25, 2001, the United States
Attorney's Office for the Eastern District of New York initiated
a grand jury investigation (“the EDNY Grand Jury Investigation”)
to investigate whether the defendant AMR I. ELGINDY and others,
had engaged in certain financial and other criminal offenses.
9
21. Beginning in or about October 2001, the defendant
JEFFREY A. ROYER regularly accessed ACS to glean detailed
information concerning the EDNY Grand Jury Investigation. ROYER
then advised ELGINDY and the defendant DERRICK W. CLEVELAND of
the direction of the EDNY Grand Jury Investigation and that
ELGINDY was a target. All the while, the defendant JEFFREY A.
ROYER continued to provide confidential law enforcement
information to the defendants AMR I. ELGINDY and DERRICK W.
CLEVELAND, and others, in order to guide their buying and selling
of the stocks of Targeted Companies or companies being
considering for targeting, and to assist in their assessment of
the susceptibility of these companies to extortion.
22. In connection with the above described trading,
the defendant AMR I. ELGINDY gave the defendant JEFFREY A. ROYER
authority to execute trades in at least one account held in the
name of ELGINDY.
The FBI Tipper Becomes a Tippee
23. On or about December 21, 2001, the defendant
JEFFREY A. ROYER resigned from the FBI and immediately took a job
with the defendant AMR I. ELGINDY at Pacific Equity
Investigations, where ROYER and ELGINDY worked together with the
defendant DERRICK W. CLEVELAND.
24. While employed at Pacific Equity Investigations,
the defendant JEFFREY A. ROYER obtained additional confidential
10
law enforcement information and provided it to the defendants AMR
I. ELGINDY and DERRICK W. CLEVELAND to guide them in buying and
selling the stocks of Targeted Companies or companies being
considered for targeting.
25. The defendant JEFFREY A. ROYER also actively
sought new confidential law enforcement information from law
enforcement personnel with access to NCIC and ACS, which he then
provided to the defendants AMR I. ELGINDY and DERRICK W.
CLEVELAND, and others, and which they all collectively used to
make decisions whether to buy or sell the stocks of the companies
to which the information was relevant.
26. In or about and between March 2002 and April 2002,
the defendant LYNN WINGATE, an FBI Special Agent assigned to the
Albuquerque, New Mexico Field Office, gathered confidential law
enforcement information from ACS regarding criminal
investigations of public companies and associated individuals.
WINGATE then communicated this information to ROYER so that
ROYER, together with the defendants AMR I. ELGINDY and DERRICK W.
CLEVELAND, and others, could collectively make decisions whether
to buy, hold or sell the stocks of companies to which the
information was relevant.
27. Moreover, in or about and between March 2002 and
April 2002, the defendant LYNN WINGATE accessed ACS and collected
confidential law enforcement and grand jury information,
11
including a description of subpoenaed documents, concerning the
EDNY Grand Jury Investigation of ROYER and AMR I. ELGINDY.
Shortly thereafter, WINGATE communicated that information to
ROYER, who then a short time later informed ELGINDY and the
defendant DERRICK W. CLEVELAND. The defendant LYNN WINGATE also
searched ACS for references to her own name to determine whether
she herself was a subject or target of the EDNY Grand Jury
Investigation.
28. Earlier this year, the defendant JEFFREY A. ROYER
attempted, unsuccessfully, to persuade another FBI Special Agent
to access ACS for confidential law enforcement information
regarding a company whose stock ROYER and ELGINDY had sold short.
THE ENTERPRISE
29. Between approximately November 2000 and May 2002,
both dates being approximate and inclusive, the defendants AMR I.
ELGINDY, JEFFREY A. ROYER, DERRICK W. CLEVELAND, TROY M. PETERS
and LYNN WINGATE, together with Pacific Equity Investigations and
certain subscribers to AnthonyPacific.com and others, were
members and associates of an enterprise as defined in Title 18,
United States Code, Section 1961(4), that is, a group of
individuals associated in fact (hereafter, the “Enterprise”).
The Enterprise operated in the Eastern District of New York and
elsewhere in the United States as well as abroad. The Enterprise
12
engaged in, and its activities affected, interstate and foreign
commerce.
30. The chief purpose of the Enterprise was to obtain
money for its members and associates by trading on material, nonpublic
information that had been misappropriated from law
enforcement databases, by manipulating the market to deflate
artificially the price of stocks that they had been short sold,
and by extorting free shares of stock from company insiders.
31. Among the means and methods by which the
defendants AMR I. ELGINDY, JEFFREY A. ROYER, DERRICK W.
CLEVELAND, TROY M. PETERS and LYNN WINGATE, and other members and
associates, conducted and participated in the conduct of the
affairs of the Enterprise were various criminal activities,
including conspiracy to commit securities fraud, extortion and
obstruction of justice.
32. The Enterprise was led by the defendant AMR I.
ELGINDY who owned and, together with the defendant DERRICK W.
CLEVELAND, operated Pacific Equity Investigations, and its public
investment website, named InsideTruth.com, its subscription email
newsletter and its subscription-based investment website,
named AnthonyPacific.com. The defendants JEFFREY A. ROYER and
LYNN WINGATE were Federal Bureau of Investigation (“FBI”) Special
Agents who, at various times, accessed FBI databases to gain
information for use in making trading decisions, and obstructed
13
the investigation of the Enterprise. ROYER was a member of the
Enterprise, while WINGATE was an associate. The defendant TROY
M. PETERS was a colleague of ELGINDY’s who assisted ELGINDY in
manipulating stock prices and extorting stock from Targeted
Companies. The Enterprise constituted an ongoing organization
whose members functioned as a continuing unit for a common
purpose of achieving the objectives of the enterprise.
COUNT ONE
(Racketeering Conspiracy)
33. The allegations contained in paragraphs 1 through
32 are realleged and incorporated as if fully set forth herein.
34. In or about and between November 2000 and May
2002, both dates being approximate and inclusive, within the
Eastern District of New York and elsewhere, the defendants AMR I.
ELGINDY, also known as “Tony Elgindy” and “Anthony Pacific,”
JEFFREY A. ROYER, DERRICK W. CLEVELAND, TROY M. PETERS and LYNN
WINGATE, togther with others, being persons employed by and
associated with an enterprise as defined in Title 18, United
States Code, Section 1961(4), that is, a group of individuals
associated in fact (hereafter, the “Enterprise”), knowingly and
intentionally conspired to violate Title 18, United States Code,
Section 1962(c), that is, to conduct and participate, directly
and indirectly, in the conduct of the affairs of the Enterprise,
which engaged in, and the activities of which affected,
interstate and foreign commerce, through a pattern of
14
racketeering activity as defined in Title 18, United States Code,
Sections 1961(1) and 1961(5). Each defendant agreed that at
least two acts of racketeering would be committed in the conduct
of the affairs of the Enterprise as set forth in the pattern of
racketeering described below.
PATTERN OF RACKETEERING ACTIVITY
Racketeering Act One
(Securities Fraud Conspiracy)
35. The defendants AMR I. ELGINDY, JEFFREY A. ROYER,
DERRICK W. CLEVELAND, TROY M. PETERS and LYNN WINGATE committed
the following acts involving securities fraud, any one of which
alone constitutes the commission of Racketeering Act One.
A. Securities Fraud Conspiracy - Insider Trading
36. The allegations contained in paragraphs 1 through
32 are realleged and incorporated as if fully set forth herein.
37. In or about and between November 2000 and May
2002, both dates being approximate and inclusive, the defendants
AMR I. ELGINDY, also known as “Tony Elgindy” and “Anthony
Pacific,” JEFFREY A. ROYER, DERRICK W. CLEVELAND, TROY M. PETERS
and LYNN WINGATE, together with others, did knowingly and
willfully conspire to use and employ manipulative and deceptive
devices and contrivances directly and indirectly, by use of means
and instrumentalities of interstate commerce and the mails, in
contravention of Rule 10b-5 of the Rules and Regulations of the
United States Securities and Exchange Commission (Title 17, Code
15
of Federal Regulations, Section 240.10b-5), and directly and
indirectly to (a) employ devices, schemes and artifices to
defraud; (b) make untrue statements of material facts and omit to
state material facts necessary in order to make the statements
made, in light of the circumstances under which they were made,
not misleading; and (c) engage in acts, practices and a course of
business which would and did operate as a fraud and deceit upon
members of the investing public, in connection with purchases and
sales of securities, in violation of Title 15, United States
Code, Sections 78j(b) and 78ff, all in violation of Title 18,
United States Code, Section 371.
38. It was a part of the conspiracy that between
November 2000 to May 2002, both dates being approximate and
inclusive, the defendants AMR I. ELGINDY and DERRICK W.
CLEVELAND, solicited, obtained and received from the defendant
JEFFREY A. ROYER, and, later, ELGINDY, CLEVELAND and ROYER,
solicited, obtained and received from the defendant LYNN WINGATE,
material, non-public information concerning Targeted Companies,
to wit: confidential law enforcement information from the FBI’s
National Crime Information Center database (“NCIC”), which
contained confidential criminal history information, and the
FBI’s Automated Case Support database (“ACS”), which contained
confidential criminal investigation information, which
information had been unlawfully misappropriated from the Federal
16
Bureau of Investigation by ROYER and WINGATE in violation of
their fiduciary and other duties of trust and confidence, and
which information was obtained and received before the
information was publicly disclosed to the investing public.
39. It was a further part of the conspiracy that, in
or about and between November 2000 and May 2002, both dates being
approximate and inclusive, after obtaining and receiving this
material, non-public information about the Targeted Companies,
but prior to the information being publicly disclosed to the
investing public, the defendants AMR I. ELGINDY, DERRICK W.
CLEVELAND and JEFFREY A. ROYER, together with others, short sold
stock of the Targeted Companies through brokerage accounts at
Global Securities in Vancouver, British Columbia, Canada
(“Global”) and elsewhere.
40. It was further part of the conspiracy that, after
short selling the stocks of such Targeted Companies, the
defendants AMR I. ELGINDY and DERRICK W. CLEVELAND, and others,
then began to spread the confidential law enforcement information
to other short sellers, via the Internet, as described above, in
order to encourage them to short sell the stock as well.
ELGINDY’s paid subscribers received the information and
recommendations first, so that they could position themselves to
profit if the market reacted to the public release of the
17
information. The subscribers passed a portion of their profits
back to ELGINDY in the form of subscription fees.
You roaches better work extra hard..ya boss soon in jail? ieeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee!!!!!
http://yahoo.reuters.com/financeQuoteCompanyNewsArticle.jhtml?duid=mtfh15504_2004-09-10_21-06-09_wen...
Update on Dateline NBC Naked Shorting Report
By: gojgmha
15 Aug 2004, 03:38 PM EDT
Msg. 56586 of 56591
Jump to msg. #
Pssst....rumour...what Dateline has... :
1. Former Under Secretary of Commerce Robert
Shapiro has reportedly told Dateline that the Illegal Shorting and stock manipulation has attributed to $500 Billion to $1 Trillion in economic losses to Investors.
2. Recently convicted individuals for securities fraud have reportedly informed Dateline of the mechanisms to the stock manipulation including the bribing of US Brokers via the use of pre-paid credit cards as well as the Bribing of Regulatory Officials empowered to protect the Investors.
3. Dateline has reportedly spoken to "Players" who have identified the Banking locations (Bahamas, Bermuda, etc?) where Offshore Hedge Funds are being used as the tool to manipulate the securities. Major US Firms are Investors in the Funds seeking quick and easy profits.
4. Dateline has reportedly been provided evidence of the 5 major US Organized Crime families being implicated in this securities fraud scandal as well as links to Terrorism leading into Saudi Arabia among other locations.
5. Finally, Dateline has reportedly spoken to
ex-executives of the Depository Trust who have explained in great detail the operations of the DTCC and how that operation is helping in this fraud. The DTCC hides the level of illegal trades (settlement failures) that are the means to the stock manipulation.
Everyone should contact Dateline and get them to do the story on illegal shorting. Here is the addy. I sent them an e-mail. Dateline@NBC.com
Sharon Hoffman is the producer for this piece.
Go bash somewhere else!
cheap basher....
MT..some dudes are so bitter cause they don't know how to trade them little guys..LOL
http://www.investorshub.com/boards/read_msg.asp?message_id=3123489
I think we have our first nasty basher..LOL!!
Why don't ya go back to posting your bile on the other thread!
http://www.investorshub.com/boards/read_msg.asp?message_id=3987924
FOR NOT BEING A BASHER YOU SURE SOUND LIKE ONE..CONSTANT SNIPING AND MEAN-SPIRITED JOKES THAT ONLY THE JC AND CLAN COULD APPRECIATE.
Well that SGGM float is tightly held..ya gotta wonder why the dude sitting on them shares didn't sell into the price run..maybe he's not suppose to do so???
Thanks for bringing some sanity back here.
Sad angry little man...you got sooo much to learn..not loved much are you? Go bash somewhere else..you are breaking the board rules here!
Prior to starting StockPatrol.com, Mr. Bernstein was a noted securities lawyer who represented dozens of public companies and brokerage firms. His clients included a group of brokerage firms that were involved in underwriting small, so-called emerging growth companies. To his regret, Mr. Bernstein became aware of certain aspects of his clients’ activities, and didn’t disclose those activities to securities regulators. As a result, Mr. Bernstein agreed to plead guilty to participating in a conspiracy to commit securities fraud, and was sentenced to probation
http://www.stockpatrol.com/about.html#publisher
Hope this board can keep the nasty bashers off...there are no other boards left..LOL
..night crawlers are back..cya
One of the first ways a negative basher girl works is by posting a lot and alternating messages..be careful folks and don't reply to questions from bashers..you know why you want to play this ticket that cost you at this moment 300 bucks for a million shares...and yes you could lose some of it if it doesn't work out..hell if you like, all of it..don't like the risk ..MOVE ON!
This is what you are about..plain hate..
http://www.investorshub.com/boards/read_msg.asp?message_id=3874450
You're a nasty basher eom!
PieSky..many daytraders I know love Tbot..it's all about catching volume leaders early in the momo during the day..you just can't follow them all intraday and Tbot signals you ahead of many..
That's no wrinkle..just correcting the links posted.
..lol..Janice eats those for breakfast..lol.. Brrrrr!!
Pretty sad.
Wow a board filled with people who all know the risk they take buying CMKX..... AND NO BASHERS SHOW UP??? This can't be for real...LOLOL!! glty longs!
My buddy Drex likes to keep it simple:
To:Spark who started this subject
From: Drex Monday, Aug 30, 2004 6:18 PM
View Replies (1) / Respond to of 1934
Of all the way out theories, why not just a simple one:
AS was raised to bring Shane, United Carina, Pine Channel into the fold.
We get dividend shares of those companies.
Then we all reverse merge into UCAD.
In the deal, we get shares of the new UCAD from all the dividend shares and our CMKX shares.
Remember, Glenn went to Saskatchewan: "I will be traveling to Saskatchewan with the company's management to expand my knowledge of the company and its business in order to facilitate the company becoming fully reporting"
We'll be fully reporting if we merge into UCAD.
BTW, who is organizing the party in October? UCAD. It might just be a UCAD shareholder party.
Well a good week and then... today!..oh well, can't win em all..word is that the market will stay flat next week because of political events in NY next week..maybe time to inhale some of the end of summer for me...of course CMKX could go nutty just then..lol
The markets are not helping any!
I use a screen (Inside Day Volatility) for 10 min to 3 day plays and the bullish engulfing Candlestick Pattern for morning scalps...had YAKC on my list last night and missed it this morning.. :((
WIN is trying..
UFI..also :))
LRT..so far is nice..
Man, you are really being tested these days..I admire how you stand up to the bullsheet bash and equally answer ignorance..all with the grace of a dude who does his homework without bias.