by Associated Press
January 5, 2005
NOTICE: THIS WORK MAY BE PROTECTED BY COPYRIGHT
YOU ARE REQUIRED TO READ THE COPYRIGHT NOTICE AT THIS LINK BEFORE YOU READ THE FOLLOWING WORK, THAT IS AVAILABLE SOLELY FOR PRIVATE STUDY, SCHOLARSHIP OR RESEARCH PURSUANT TO 17 U.S.C. SECTION 107 AND 108. IN THE EVENT THAT THE LIBRARY DETERMINES THAT UNLAWFUL COPYING OF THIS WORK HAS OCCURRED, THE LIBRARY HAS THE RIGHT TO BLOCK THE I.P. ADDRESS AT WHICH THE UNLAWFUL COPYING APPEARED TO HAVE OCCURRED. THANK YOU FOR RESPECTING THE RIGHTS OF COPYRIGHT OWNERS.
NEW YORK – A former FBI agent admitted that he gave online stock traders confidential details of federal investigations, including a probe of the Sept. 11 terror attacks.
One of the recipients was San Diego stock speculator Anthony Elgindy. A Justice Department task force had begun the investigation of Elgindy to determine whether anyone might have known of the terrorists' plans and profited by selling vulnerable stocks just before the attacks, Jeffrey Royer said.
Elgindy was not charged in connection with that probe, but an investigation into the ties between Elgindy and Royer led to charges against the two men of racketeering, securities fraud and other crimes. The two are on trial together in federal court in Brooklyn.
Taking the stand Monday in his defense, Royer acknowledged he had revealed the existence of FBI and SEC investigations, executives' criminal records and other sensitive information to Elgindy and associate Derrick Cleveland.
He said the apparent violations were justified because Elgindy and Cleveland were stock-market experts who helped him develop evidence of financial wrongdoing.
Prosecutors say the relationship was criminal. Elgindy was accused of paying Royer for the information and using it to manipulate stock prices and extort companies that were the subjects of investigations.
When pressed by Assistant U.S. Attorney Seth Levine about apparent violations of FBI rules, Royer grew testy, asserting he was an independent-minded agent who had the right to decide what information to reveal.
"It's real easy for you to armchair quarterback when you don't have anything to do with the case," Royer told Levine. "Pursuant to a law-enforcement purpose, I can do anything I want with the files."
Cleveland has pleaded guilty to conspiracy to commit securities fraud and testified against Elgindy and Royer.