Daytrader Arrested
- Thread starter Bob777
- Start date
Turlo,
Not sure if you have read "confessions of a street addict", but Cramer comes right out and says that he would fish around companies for information and do the same with the analysts for potential upgrades and downgrades. Load Up on Puts and Calls and then sell into the frenzy. (He doesn't add that part but it is what I suspect)
Anyone else think it is curious that he is so opposed to REG FD, and retired soon after its inception?
Not sure if you have read "confessions of a street addict", but Cramer comes right out and says that he would fish around companies for information and do the same with the analysts for potential upgrades and downgrades. Load Up on Puts and Calls and then sell into the frenzy. (He doesn't add that part but it is what I suspect)
Anyone else think it is curious that he is so opposed to REG FD, and retired soon after its inception?
I don't think he was arrested for 'Ruling the Freakin' Market'.
Seems unrelated to trading altogether:
http://www.thestreet.com/tech/internet/940672.html
Elgindy pleaded guilty to the mail fraud charge in February, after he was charged in a nine-count insurance fraud indictment. (TSC wrote about his plea in February.)
The indictment had alleged that Elgindy received compensation from securities firms while he was also fraudulently receiving disability benefits from an insurance company. The mail fraud charge stemmed from the method of delivery for the disability checks.
Seems unrelated to trading altogether:
http://www.thestreet.com/tech/internet/940672.html
Elgindy pleaded guilty to the mail fraud charge in February, after he was charged in a nine-count insurance fraud indictment. (TSC wrote about his plea in February.)
The indictment had alleged that Elgindy received compensation from securities firms while he was also fraudulently receiving disability benefits from an insurance company. The mail fraud charge stemmed from the method of delivery for the disability checks.
http://story.news.yahoo.com/news?tm...r_elgindy_is_charged_with_manipulating_stocks
I was wondering how this guy made so many correct calls. Looks like he had a pal at the FBI.
I was wondering how this guy made so many correct calls. Looks like he had a pal at the FBI.
My article was about his <b>other</b> felony.
that guy was paying off FBI people for information regarding which companies they were investigating. He was then posting this information on his site, and other web chat sites. The interesting thing is that he was paying around $30,000 for the information, but they seized a Jag, a Hummer, a Bentley and a house worth $2.2 mil (if i remember correctly). Not too shabby at all 
Those FBI boys go for dirt cheap payouts. I'd at least ask for the Bentley, or a new Benz
greedy canuck
Those FBI boys go for dirt cheap payouts. I'd at least ask for the Bentley, or a new Benz greedy canuck
Short-Seller Elgindy Is Charged
With Manipulating Stock Prices
By MICHAEL RAPOPORT and CAROL S. REMOND
DOW JONES NEWSWIRES
NEW YORK -- Anthony Elgindy, the controversial short-seller and Internet
stock commentator, was arrested on charges of manipulating stocks by using
secret government information fed to him by collaborators within the Federal
Bureau of Investigation.
Mr. Elgindy, who lives in the San Diego area, was arrested at his business
on Tuesday, Jan Caldwell, a spokeswoman for the San Diego field office of
the FBI, said Wednesday.
Mr. Elgindy was indicted by a federal grand jury in Brooklyn, N.Y., on
charges of racketeering, insider trading, market manipulation, extortion
conspiracy and obstruction of justice. Four other people, including a
current FBI agent and a former agent, also were indicted.
The indictment alleges that Mr. Elgindy, through his FBI contacts, obtained
confidential information from FBI databases about criminal history and
investigations relating to companies that he was shorting or thinking of
shorting. A short-seller sells borrowed shares and profits when a stock
declines, so exclusive access to negative information about a company would
be valuable to a short.
He then used the secret information to decide how to invest, prosecutors
say, and distributed it to other short-sellers to encourage them to short
the stock also. Paid subscribers to Mr. Elgindy's e-mail newsletter and
investment Web site received the information also, prosecutors said.
In addition, according to the indictment, Mr. Elgindy extorted free or cheap
shares of stock from the insiders of companies he had targeted in exchange
for his agreement to stop shorting the companies and stop spreading negative
information about them.
Mr. Elgindy was even able to spy on the government's grand jury
investigation of him through his FBI contacts, prosecutors allege. One of
the FBI agents indicted along with Mr. Elgindy gleaned information about the
probe from an FBI database and told Mr. Elgindy of the direction of the
investigation and that he was a target, according to the indictment.
A woman at Mr. Elgindy's home hung up the phone on a reporter who called
seeking comment. Mr. Elgindy's attorney couldn't immediately be reached.
With Manipulating Stock Prices
By MICHAEL RAPOPORT and CAROL S. REMOND
DOW JONES NEWSWIRES
NEW YORK -- Anthony Elgindy, the controversial short-seller and Internet
stock commentator, was arrested on charges of manipulating stocks by using
secret government information fed to him by collaborators within the Federal
Bureau of Investigation.
Mr. Elgindy, who lives in the San Diego area, was arrested at his business
on Tuesday, Jan Caldwell, a spokeswoman for the San Diego field office of
the FBI, said Wednesday.
Mr. Elgindy was indicted by a federal grand jury in Brooklyn, N.Y., on
charges of racketeering, insider trading, market manipulation, extortion
conspiracy and obstruction of justice. Four other people, including a
current FBI agent and a former agent, also were indicted.
The indictment alleges that Mr. Elgindy, through his FBI contacts, obtained
confidential information from FBI databases about criminal history and
investigations relating to companies that he was shorting or thinking of
shorting. A short-seller sells borrowed shares and profits when a stock
declines, so exclusive access to negative information about a company would
be valuable to a short.
He then used the secret information to decide how to invest, prosecutors
say, and distributed it to other short-sellers to encourage them to short
the stock also. Paid subscribers to Mr. Elgindy's e-mail newsletter and
investment Web site received the information also, prosecutors said.
In addition, according to the indictment, Mr. Elgindy extorted free or cheap
shares of stock from the insiders of companies he had targeted in exchange
for his agreement to stop shorting the companies and stop spreading negative
information about them.
Mr. Elgindy was even able to spy on the government's grand jury
investigation of him through his FBI contacts, prosecutors allege. One of
the FBI agents indicted along with Mr. Elgindy gleaned information about the
probe from an FBI database and told Mr. Elgindy of the direction of the
investigation and that he was a target, according to the indictment.
A woman at Mr. Elgindy's home hung up the phone on a reporter who called
seeking comment. Mr. Elgindy's attorney couldn't immediately be reached.