Now would goverment agents do this?????

Discussion in 'The Powder Keg' started by Doglips, May 26, 2002.

  1. Doglips

    Doglips Guest

    Dont make this stuff up..just cut and past it....see the words are spelled right..

    Five, Including F.B.I. Agents, Are Named in a Conspiracy
    Submitted by: Newslinks Director
    There are 3 comments on this story
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    "Five people, including a current and a former F.B.I. agent, were charged by federal prosecutors yesterday with using confidential government information to manipulate stock prices and extort money from companies."

    "Prosecutors said that he obtained government information about publicly traded companies and then used that information to predict which stocks would fall and to persuade companies to pay for his silence."
  2. Doglips

    Doglips Guest

    The complete artical...had to find it.

    FBI agents arrested for securities fraud
    By John Labate in New York
    Published: May 22 2002 19:45 | Last Updated: May 22 2002 19:45

    Two agents for the Federal Bureau of Investigation were among those arrested on racketeering and securities fraud charges in a scheme in which confidential FBI information was used to trade and illegally manipulate stocks.

    The US Attorney's office in Brooklyn said on Wednesday in its indictment that the scheme was led by Amr Elgindy, a well-known internet trader and stock newsletter analyst better known as Tony Elgindy.

    The FBI agents, Jeffrey Royer and Lynn Wingate, stood accused of disclosing confidential information from FBI national crime databases to Mr Elgindy and two of his business partners.

    The FBI files were used as the basis to buy or sell various shares. During the height of the late-1990s bull market Mr Elgindy became a cult figure among internet traders because of his popular commentaries on companies. Prior to that he was a licensed securities broker.

    US officials said on Wednesday that the scheme involved the "short-selling" of stocks, in which the expectation is that the price would decline, based on the confidential FBI reports.

    Once the short trades were established, Mr Elgindy and others allegedly used various manipulation tricks to lower the prices, including spreading negative information through the internet.

    Mr Royer, who was still an FBI special agent at the time of the scheme, was wired more than $30,000 in exchange for the information he passed on, according to the indictment. He left the FBI late last year to work with Mr Elgindy.

    The other FBI agent allegedly involved in the scheme, Lynn Wingate, has been an FBI special agent since 1999 and is currently assigned to the bureau's office in Albuquerque, New Mexico.

    The five were also charged on Wednesday with using the confidential material to extort company insiders, including threats to report a company's activities to the FBI or Securities and Exchange Commission.

    US officials also filed civil forfeiture action yesterday for the release of funds on deposit in numerous accounts held on behalf of Mr Elgindy, as well as several cars and his primary residence, bought last year for $2.2m.

    They face as much as 20 years each in prison on the racketeering charge, plus fines, and another 20 years for the extortion charge.

    :nod: :nod: :nod: :nod: :nod: :nod: :eek: :eek:


    NRAJOE YOU TALKIN' TO ME!? Forum Contributor

  4. wes

    wes Guest

    And to think,at one time I considered going into the FBI. I could have lead a life of crime. Thank God I went down the right path and joined a motorcycle gang instead.