Daytrader Arrested

Discussion in 'Trading' started by Bob777, May 22, 2002.

  1. Ah, such is life...I'm just looking forward to the day when I go from small-time conman to big-time conman...kinda like daytrader to specialist...scalper to marketmaker...
     
    #11     May 22, 2002
  2. trdrmac

    trdrmac

    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?
     
    #12     May 22, 2002
  3. davealex

    davealex

     
    #13     May 22, 2002
  4. Turlo

    Turlo

    Check out "Trading with The Enemy".
     
    #14     May 22, 2002
  5. 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.
     
    #15     May 22, 2002
  6. #16     May 22, 2002
  7. davealex

    davealex

    This is a new indictment. That was old news. Read the story.

    Dave
     
    #17     May 22, 2002
  8. My article was about his <b>other</b> felony.
     
    #18     May 22, 2002
  9. canuck

    canuck

    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
     
    #19     May 22, 2002
  10. todd960

    todd960

    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.
     
    #20     May 22, 2002