Defendant pleads guilty in FBI insider trading case
Dow Jones/Associated Press
July 16, 2003
NEW YORK A webmaster pleaded guilty Tuesday to a charge of conspiracy to commit securities fraud in a case that involves the alleged use information from FBI databases to trade stocks.
Robert Hansen was charged as part of the Anthony Elgindy securities fraud case in the Eastern District of New York.
Short-seller Elgindy, two FBI agents and three others are accused of using information obtained illegally from FBI databases, mostly to sell stocks short.
Hansen, who was Elgindy's webmaster, is the second defendant to plead in the case. Last year, Derrick Cleveland pleaded guilty to racketeering. Like Cleveland, Hansen is now cooperating with the government.
Hansen appeared in court Tuesday. As part of his plea, Hansen said that he and others "obtained material nonpublic information which they used to make decisions regarding whether to purchase or sell the stock of companies."
As part of the conspiracy to use nonpublic information to trade stocks, Hansen said that Elgindy founded Pacific Equities Investigation and two related Web sites to help spread information about the companies targeted.
Elgindy, the two former FBI agents, Jeffrey Royer and Lynn Wingate, former trader Troy Peters and fund manager Jonathan Daws have pleaded not guilty to the charges.