=DJ Elgindy Arrested Saturday At NY Airport Using Fake ID
By Carol S. Remond
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Embattled shortseller Anthony Elgindy is back in jail just over a month before the scheduled start of his trial on charges of securities fraud and racketeering.
Elgindy was arrested in May 2002 and charged in a case involving the use of confidential government information to manipulate the stock of several small-cap companies.
Elgindy had been out on a $2.5 million bail, which was revoked Monday by federal judge Raymond Dearie.
According to a sworn affidavit, Elgindy was arrested Saturday at the MacArthur Airport in Islip, N.Y., attempting to board a plane using a fake ID. The Southwest Airlines plane was headed to Phoenix with a connecting flight to San Diego.
The boarding pass issued to Elgindy bore the name of Manny Velasco. Elgindy was also in possession of a fake Montana state ID, with his picture that listed the name Herbert Manny Velasco.
Elgindy was carrying $25,000 in cash and some $40,000 in jewelry at the time of his arrest. He also had four cellphones and various electronic devices. According to the affidavit, when he was arrested, Elgindy denied that he was Tony Elgindy and said that Elgindy was the person who he had gone to see in New York.
Elgindy and five co-defendants were charged in 2002 on charges they conspired to drive down the price of the shares of companies they targeted in a short-selling scheme.
Also charged in the 2002 case are two former FBI agents, Jeffrey Royer and Lynn Wingate; two traders, Troy Peters and Derrick Cleveland; a fund manager, Jonathan Daws; and Elgindy's Web master, Robert Hansen.
Cleveland has pleaded guilty to racketeering and Hansen has pleaded guilty to one count of conspiracy to commit securities fraud. Both are cooperating with the government.
Under the conditions of his bail, Elgindy had worn a GPS bracelet at all times while in San Diego where he resides. The bracelet was removed when Elgindy was allowed to travel on pre-authorized trips to meet with his lawyers in New York.
At the time of his arrest, Elgindy also carried an identification card in the name of Heriberto M. Velazco.
- By Carol S. Remond, Dow Jones Newswires; 201-938-2074
(END) Dow Jones Newswires
04-19-04 1743ET
