Ex-FBI Agent Convicted Over Stock Deals

NEW YORK (AP) - A former FBI agent and an Internet penny stock adviser were convicted Monday of mining government computers for confidential information they used to manipulate the stock market.

Former agent Jeffrey Royer was convicted of racketeering, securities fraud, obstruction of justice and witness tampering for leaking details of FBI investigations and executives' criminal histories to San Diego stock picker Anthony Elgindy. Elgindy was convicted of racketeering, securities fraud and extortion for his role in the scheme. He dropped his face into his hands and sobbed uncontrollably as the jury foreman read the verdict; U.S. marshals led him weeping from the courtroom.

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Prosecutors said Elgindy bet against penny stocks and drove down their prices by publicizing damaging information he received from the agent. Elgindy also extorted companies by offering to withhold the information in exchange for cash, prosecutors said.

Royer even tipped off the Egyptian-born financial analyst to an FBI probe into whether he profited from advance knowledge of the Sept. 11, 2001, terrorist attacks by selling off stocks that plunged after the attacks, prosecutors said. Elgindy was not charged in that investigation.

http://www.guardian.co.uk/uslatest/story/0,1282,-4753096,00.html

So, Elgindy wasn't charged on profiting from advance knowledge of 9/11? Was he not charged due to lack of evidence, or lack of interest? Will he serve 24 months in minimum security confinement in order to not discuss the other matter? Tinfoily minds want to know...

It will be interesting to learn his actual sentence. The article stipulates 10 to 20 years... hmm...