FBI AGENT FED STOCK GURU RISKY INFORMATION

New York Post
Staff Reporter
November 5, 2004

A corrupt FBI agent in cahoots with inside traders revealed a steady stream of sensitive information — including one corporate executive's alleged ties to the Russian mob and an undercover agent's presence at another firm, according to court testimony yesterday.

The companies' negative information was posted on the Web site of San Diego financial analyst and self-styled stock guru Amr "Anthony" Elgindy, who profited when their stock went down, a former Elgindy associate testified in federal court in Brooklyn.

Derrick Cleveland testified that he rewarded the FBI agent, Jeffrey Royer, with a pickup truck and half the proceeds from trades based on the government information.

Cleveland is cooperating with prosecutors against Elgindy and Royer in their trial on racketeering and fraud charges.

Lawyers for Elgindy deny the charges, saying their client had a solid reputation for protecting investors by working with regulators to expose fraud by small publicly traded companies.

Royer's attorney told the jury that he was an ambitious agent who recruited Cleveland and Elgindy as confidential informants and shared information with them with no corrupt intent.

Royer did a terrible job of concealing his tracks, Cleveland testified. He sent Cleveland a photocopy of the pickup truck title from the fax machine at the FBI's Gallup, N.M., office. The fax arrived bearing an FBI stamp and was introduced into evidence.

Royer also partied in Las Vegas with Elgindy and associates and chatted about his job as a federal agent in a chat room run by Elgindy for traders who paid him a monthly fee, Cleveland said.

Prosecutors showed the jury photographs of Elgindy and fellow traders cavorting in Vegas with Royer's FBI business cards stuck to their foreheads.

 

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