Wednesday, January 26, 2005

Stock picker, former FBI agent convicted

Pair accused of fraud in short-selling scheme

NEW YORK - Stock picker Anthony Elgindy was convicted of racketeering and fraud yesterday for parlaying illegal tips from an FBI agent into trading profits by short-selling stocks of companies under government investigation.

Elgindy, 36, who also went by the name Anthony Pacific, was convicted by a federal jury in Brooklyn, N.Y., after four days of deliberations in a trial that began in November.

The former agent, Jeffrey Royer, 41, also was convicted. The two men could face 10 to 20 years in prison. ...

After his arrest in May 2002, federal prosecutors suggested that Elgindy may have had advance knowledge of the Sept. 11, 2001, terrorist attacks because he had predicted beforehand that the stock market would collapse and had tried to sell stock in his children's trust funds.

Royer was accused of tipping Elgindy to an FBI probe into whether the Egyptian-born trader knew about the Sept. 11 terrorist attacks before they occurred. That investigation did not result in charges against Elgindy, but jurors heard references to it throughout the trial. Elgindy's attorneys said they would examine the issue as they began to plan an appeal.

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