PROSECUTORIAL WITNESS TAMPERING

Prosecutorial Witness Tampering

Prosecutorial Incompetence

The testimony of former Federal Bureau of Investigations Agent Jeffrey Royer at the Anthony Elgindy stock manipulation trial in NY raises serious doubts about the win at any cost approach to Federal Agency efforts.

Under testimony Royer, on trial for securities fraud himself, claimed that he was operating under a typical agent-informant relationship when he proceeded to hand accused stock manipulator Anthony Elgindy confidential information on SEC and FBI Investigations into potential “Scam companies”. Elgindy would then take this confidential information and launch a merciless barrage of short sellers and damaging reports on these firms attempting to bring down their operations. In the wake was left untold numbers of innocent investors. Elgindy and his clan made money.

According to a Dow Jones article by Carol Remond, Royer told jurors that his desire to quash securities fraud was fueled by his own losses in a company called Webtel. Royer said he invested about $82,000 of his own and his friends' and family's money, which was lost when the company blew up. Apparently the fact that Royer lost money in a scam stock left him compelled to include others in his suffering as he fed Elgindy this inside information to be used for stock manipulation.

The problem with this fiasco that has found its way into the US District Court in NY is that Royer and Elgindy did not operate alone in this. It was an entire network of co-conspirators that allowed the stock manipulation to transpire and those co-conspirators include Wall Street and Wall Streets illustrious regulators.

Anthony Elgindy, and former FBI Agents Jeffrey Royer and Derrick Cleveland are accused of, among other things, stock manipulation as well as insider trading. To commit a stock manipulation strategy in short selling, the short sales must go beyond the natural short sale processes; borrow a security for settlement delivery. Had Elgindy operated in that legal manner there would be no trial. Instead, in this case the sales became naked shorts as the magnitude of short sales could not meet the guidelines for trade settlements. The short sales were overwhelming and went beyond shares available to borrow. To manipulate a stock you must have access to sell any required amount necessary to do the job and Elgindy and his team were given that access.

Anthony Elgindy ran his web site that, through paid subscriptions, allowed many savvy short selling enthusiasts to a smorgasbord of juicy details about events to come. The subscribers included a reported 400 or more Hedge Funds along with other short selling professionals.    As FBI Agent Royer, and reportedly other SEC and NASD officials provided Elgindy with investigations underway, Elgindy would use his internet site to pass on such information initiating attacks on these companies. These were fraud companies and the regulators could not be bothered with their own policing. The attacks orchestrated came by way of massive short selling that resulted in overselling of these securities and resultant stock price ...