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California

Trader Expected to Be Released From Jail

September 11, 2002|From Dow Jones Newswires

Stock trader Amr "Anthony" Elgindy was scheduled to be released from jail in New York late Tuesday, after spending three months incarcerated on charges he manipulated stock prices in a scheme with FBI agents.

He is expected to return to his home in San Diego after posting bond of $2.5 million.

Elgindy, 34, was arrested in May and, with four others, accused of securities fraud and racketeering. The federal indictment alleges that Elgindy, two other stock traders and two former FBI agents used confidential government information to manipulate shares of companies in "short-selling" schemes.

Elgindy, who has pleaded not guilty, will be under house arrest in San Diego and will have to wear an electronic bracelet that will allow the government to track his movements.

Elgindy's bond was signed by seven family members and is secured by five properties.

One of Elgindy's associates accused in the indictment, Derrick Cleveland, pleaded guilty to racketeering in July and has since been cooperating with the government.

Elgindy is a well-known trader and former broker who operated Web sites that singled out stocks for short selling--bets that the price of a stock will decline.

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