Superseding Indictment of Anthony Elgindy, Jeffrey Royer, Jonathan Daws, Troy Peters, and Lynn Wingate

United States of America v. Anthony Elgindy and others; Superseding Indictment

EOC:KMB
F. #2001R02074
ELGINDY.SUPIND1

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK

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UNITED STATES OF AMERICA

- against -

AMR I. ELGINDY,
also known as "Tony Elgindy"
and "Anthony Pacific,"
JEFFREY A. ROYER,
JONATHAN DAWS,
TROY M. PETERS and
LYNN WINGATE,

Defendants.

S U P E R S E D I N G
I N D I C T M E N T

Cr. No. 02-589 (S-1)(RJD)
(T. 15, U.S.C., §§
78j(b) and 78ff;
T. 18, U.S.C., §§ 371,
981, 982, 1343, 1346,
1503, 1512(b)(3),1951(a), 1962(d), 1963,
2 and 3551 et seq.; T.
21, U.S.C., § 853(p);
T. 28, U.S.C. §
2461(c))

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THE GRAND JURY CHARGES:

At all times relevant to this Superseding Indictment,

unless otherwise indicated:

INTRODUCTION

The Defendants

i) The defendant AMR I. ELGINDY, also known as "Tony Elgindy" and "Anthony Pacific," was a trader, a financial analyst and the owner and operator of Pacific Equity Investigations, a business based in San Diego, California.

ii) The defendant JEFFREY A. ROYER was a Special Agent with the Federal Bureau of Investigation ("FBI") from November 12, 1996 through December 21, 2001. From March 7, 1997 through November 6, 2000, ROYER was assigned to the FBI’s Field Office in Oklahoma City, Oklahoma. On November 6, 2000, ROYER was transferred to the FBI’s Resident Agency in Gallup, New Mexico. On or about December 21, 2001, ROYER resigned from the FBI and began to work for the defendant AMR I. ELGINDY

iii) The defendant JONATHAN DAWS was a fund manager and partner at Gryphon Partners, L.P., a hedge fund based in Dallas, Texas.

iv) The defendant TROY PETERS was an investor affiliated with Geneva Capital & Finance Group and First Geneva Securities, a broker-dealer of securities registered with the United States Securities and Exchange Commission ("SEC") and the National Association of Securities Dealers, Inc. ("NASD"), based in San Diego, California.

v) The defendant LYNN WINGATE was a Special Agent with the FBI from May 9, 1999 through May 21, 2002, and was assigned to the Albuquerque, New Mexico Field Office.

Overview of the Defendants’ Schemes

vi) The defendants AMR I. ELGINDY and JONATHAN DAWS, together with Derrick W. Cleveland and others, specialized in "short selling" shares of stock of various companies whose respective stock prices appeared to be vulnerable to the release of negative news and selling pressure. Short selling is a technique in which investors make money only if the price of a stock falls. Specifically, short selling involves "borrowing" stock from another party and selling it, with an agreement to return the stock to the other party at a later date. The short seller hopes that the stock’s price will fall, allowing the short seller to buy the stock back later at a lower price and return the stock to the lender. Thus, short sellers profit from decreases in the price of a stock that they have sold short. Conversely, short sellers lose money when the price of a stock that they have sold short rises.

vii) In order to earn greater profits for themselves and obtain an unfair advantage over other investors, the defendants AMR I. ELGINDY, JEFFREY ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE, together with Derrick W. Cleveland and others, engaged in a variety of schemes to defraud investors in connection with the purchase and sale of stock of certain targeted companies (collectively, the "Targeted Companies"), including but not limited to Broadband International Wireless Corp. ("Broadband"), Nuclear Solutions, Potomac Energy Corp. ("Potomac"), and Company No. 1, Company No. 2, Company No. 3, Company No. 4, Company No. 5, Company No. 6, Company No. 7, Company No. 8 and Company No. 9 (the names of which are known to the Grand Jury).

viii) The defendants’ illegal schemes included insider trading, stock price manipulation and extortion. The insider trading involved the defendants’ trading – usually by selling stock short – based upon material, non-public law enforcement and regulatory information, which ROYER and WINGATE misappropriated from the FBI. The stock price manipulation involved, among other things, the defendants’ dissemination of negative, and sometimes false and misleading information, to profit from the artificial deflation of the stock price. The extortion involved the defendants’ demand of stock and other things of value from individuals associated with companies which the defendants targeted for short selling and price manipulation.

ix) The defendants AMR I. ELGINDY, JEFFREY ROYER and LYNN WINGATE, together with others, also took steps to obstruct the investigation of their conduct by law enforcement authorities.

The Defendants’ Use of the Internet

x) For the purpose of advancing his illegal stock trading schemes, the defendant AMR I. ELGINDY and other co-conspirators communicated with other short sellers nationwide, including short sellers and other investors within the Eastern District of New York, via the Internet, e-mails, electronic messages, the telephone and facsimile transmissions. To facilitate these communications, ELGINDY founded Pacific Equity Investigations, which operated a public website named InsideTruth.com, and a subscription e-mail service and website named AnthonyPacific.com. The service provider for ELGINDY’s websites was Electronic Information Management Systems ("EIMS"), an Internet hosting service operated by a co-conspirator from his home in Melbourne, Florida.

xi) In addition to hosting the websites, EIMS received and processed subscription fees paid by the members of AnthonyPacific.Com, including subscribers who lived and worked in the Eastern District of New York ("EDNY Subscribers"). The subscribers of AnthonyPacific.com paid fees of up to $1,400 per month. Subscribers to ELGINDY’s e-mail newsletter paid up to $100 per month. The fees enriched ELGINDY and funded the cost of maintaining the websites.

xii) The defendant AMR I. ELGINDY used the Internet and e-mails to spread negative, and sometimes false and misleading, information and to advise others to join him in short selling the stock of the Targeted Companies, which was calculated to have the effect of driving down the price of the stock of those companies, and which, in turn, increased the short-selling profits of ELGINDY and others.

xiii) In part as a result of the defendants’ extensive use of the Internet, the securities trading activity in furtherance of the defendants’ schemes took place nationwide, including within the Eastern District of New York. For instance, victims of the securities fraud scheme, including (1) insider trading victims, who bought stock when the co-conspirators were selling, and vice versa, and (2) manipulation victims, who were disadvantaged in their trading because the market prices for the targeted companies’ stocks were manipulated, were located in the Eastern District of New York. In addition, some such trades were executed through "market makers" who were located in this District. A market maker is a broker-dealer in securities who enters "bid" and "ask" prices for securities traded in the over-the-counter market, indicating the price at which it is willing to buy or sell the securities.

Insider Trading - The FBI Tipper

xiv) In or about early 2000, the defendant JEFFREY A. ROYER was introduced by Derrick W. Cleveland to the defendant AMR I. ELGINDY. ELGINDY then began providing ROYER with negative information concerning the companies that ELGINDY had short sold or was considering short selling.

xv) Beginning in and around 2000, the defendant AMR I. ELGINDY and Derrick W. Cleveland corruptly induced the defendant JEFFREY A. ROYER to provide them with confidential law enforcement and regulatory information concerning publicly traded companies and associated individuals. ROYER obtained the law enforcement information from law enforcement personnel and from the FBI’s National Crime Information Center database ("NCIC"), which contained confidential criminal history information, and the FBI’s Automated Case Support database ("ACS"), which contained confidential criminal investigation information. Access to confidential law enforcement information is strictly limited to law enforcement personnel for law enforcement purposes. ROYER obtained the regulatory information from attorneys at the SEC, who unwittingly provided it to ROYER in his capacity as a Special Agent with the FBI.

xvi) As part of the corrupt inducement to the defendant JEFFREY A. ROYER, the defendant AMR I. ELGINDY offered ROYER a high-paying job. The job offer was not communicated to the FBI until shortly before ROYER intended to leave the FBI in December 2001. In addition, Derrick W. Cleveland agreed to share his trading profits with ROYER and wired funds to ROYER, while ROYER was a Special Agent with the FBI, in the following amounts on the following dates: (1) $8,500 on November 28, 2000; (2) $5,000 on January 30, 2001; (3) $9,925 on May 22, 2001; and (4) $7,000 on May 31, 2001. The payments were not reported to the FBI.

xvii) The defendants AMR I. ELGINDY, JEFFREY A. ROYER and JONATHAN DAWS, together with others, used the confidential law enforcement and regulatory information to make decisions whether to buy, hold or sell the stocks of the companies to which the information was relevant.

xviii) After short selling the stocks of such Targeted Companies, the defendants AMR I. ELGINDY and JONATHAN DAWS, together with others, also disseminated confidential law enforcement and regulatory information to other short sellers, in the Eastern District of New York and elsewhere, via the Internet and other means, as described above, in order to encourage them to short sell the stock as well.

xix) The defendant AMR I. ELGINDY and others managed the release of information and short selling recommendations in a manner designed to maximize their ability to control the market impact. The defendants generally released information and short selling recommendations first to website subscribers, then to e-mail subscribers, and only later, and not in all cases, to the investing public. Thus, subscribers had the opportunity to short sell stocks before the public release of ELGINDY’s recommendations. Once the decision was made to disseminate the information publicly, ELGINDY and his subscribers also posted it on various Internet bulletin boards, chat rooms and on related websites, often assuming fictitious identities to do so. The widespread dissemination of this negative information had the intended goal of exaggerating the downward pressure on the stock prices of Targeted Companies so as to increase the short sellers’ profits. The subscribers, including EDNY Subscribers, passed a portion of their profits back to ELGINDY in the form of subscription fees.

Market Manipulation

xx) Often, after short selling the stocks of Targeted Companies, the defendants AMR I. ELGINDY, JONATHAN DAWS, and TROY PETERS, together with Derrick W. Cleveland and others, engaged in additional manipulative activity designed to exaggerate the negative market sentiment for the stocks, including making false and misleading statements, and coordinating their short selling with the release of that information. The defendants made and disseminated false and misleading statements with regard to, among other things, the Targeted Companies and associated individuals, and the timing, share price and size of the defendants’ own trading.

xxi) To assist the market manipulation, the defendant AMR I. ELGINDY and others routinely communicated with the subscribers, including EDNY Subscribers, in chat room discussions and by e-mail, fax and telephone, to, among other things, (1) disseminate negative, and sometimes false and misleading, information to the subscribers, (2) encourage the subscribers to assist in the dissemination of the information to the investing public once the decision had been made to release the information, and (3) give directions to the subscribers regarding trading.

xxii) The defendants AMR I. ELGINDY, JONATHAN DAWS and TROY PETERS, together with others, sometimes reported negative information about the Targeted Companies to the FBI and the SEC in order to initiate or hasten regulatory and law enforcement action, which they knew would cause the stock prices to fall sharply once such action became public.

Extortion

xxiii) As a result of the above actions, the defendant AMR I. ELGINDY cultivated the perception that he had the ability to cause a significant decrease in a Targeted Company’s stock price using the unlawful means described above. ELGINDY and defendant TROY PETERS, together with Derrick W. Cleveland and others, used that perception to extort below-market-price or free shares of stock, and other things of value, from the Targeted Companies and their owners in exchange for the defendants’ agreement no longer to short sell the companies’ stock or spread negative information about the companies.

xxiv) The defendants AMR I. ELGINDY and TROY PETERS, together with others, used the confidential law enforcement and regulatory information obtained from the defendant JEFFREY A. ROYER to assess whether the Targeted Companies were susceptible to extortion.

xxv) To implement the extortion scheme, the defendant AMR I. ELGINDY and others routinely communicated with his subscribers, including EDNY Subscribers, in chat room discussions and by e-mail, fax and telephone. Once the extortionate demands of the defendants AMR I. ELGINDY and TROY PETERS were satisfied, ELGINDY communicated to his subscribers, including EDNY Subscribers, via the Internet, as described above, that they should stop short selling, cover their short positions by buying stock and refrain from further dissemination of negative information regarding the targeted company.

Obstruction of Justice

xxvi) On or about September 18, 2001, the U.S. Department of Justice initiated an investigation of certain financial and other criminal offenses. Shortly thereafter, the United States Attorney's Office for the Eastern District of New York initiated a grand jury investigation (the "EDNY Grand Jury Investigation") to investigate whether the defendant AMR I. ELGINDY and others, had engaged in certain financial and other criminal offenses.

xxvii) Beginning in or about October 2001, the defendant JEFFREY A. ROYER regularly accessed ACS to obtain detailed information concerning the EDNY Grand Jury Investigation. ROYER then advised ELGINDY and Derrick W. Cleveland of the direction of the EDNY Grand Jury Investigation and that ELGINDY was a target. All the while, ROYER continued to provide confidential law enforcement and regulatory information to ELGINDY and others, in order to guide their buying and selling of the stocks of Targeted Companies or companies being considering for targeting, and to assist in their assessment of the susceptibility of these companies to extortion.

The FBI Tipper Becomes a Tippee

xxviii) On or about December 21, 2001, the defendant JEFFREY A. ROYER resigned from the FBI and immediately took a job with the defendant AMR I. ELGINDY at Pacific Equity Investigations.

xxix) After joining Pacific Equity Investigations, the defendant JEFFREY A. ROYER actively sought new confidential law enforcement and regulatory information from law enforcement personnel with access to NCIC and ACS and from SEC attorneys, which he then provided to the defendant AMR I. ELGINDY and others.

xxx) In or about and between March 2002 and April 2002, the defendant LYNN WINGATE gathered confidential law enforcement information from ACS regarding criminal investigations of public companies and associated individuals. WINGATE then communicated this information to ROYER so that ROYER, together with the defendant AMR I. ELGINDY and others, could collectively make decisions whether to buy, hold or sell the stocks of companies to which the information was relevant.

xxxi) In or about and between March 2002 and April 2002, the defendant LYNN WINGATE also accessed ACS and collected confidential law enforcement information concerning the EDNY Grand Jury Investigation. WINGATE communicated that information to ROYER, who then informed ELGINDY and others. The defendant LYNN WINGATE also searched ACS for references to her own name to determine whether she herself was a subject or target of the EDNY Grand Jury Investigation.

xxxii) In early 2002, the defendant JEFFREY A. ROYER also attempted, unsuccessfully, to persuade another FBI Special Agent to access ACS for confidential law enforcement information.

COUNT ONE
(Racketeering Conspiracy)

xxxiii) The allegations contained in paragraphs 1 through 32 are realleged and incorporated as if fully set forth in this paragraph.

THE RACKETEERING ENTERPRISE

xxxiv) Between approximately March 2000 and May 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, JEFFREY A. ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE, together with Pacific Equity Investigations, Derrick W. Cleveland and certain subscribers to AnthonyPacific.com and others, were members and associates of an enterprise (the "ELGINDY Enterprise") as defined in Title 18, United States Code, Section 1961(4), that is, a group of individuals associated in fact. The ELGINDY Enterprise operated in the Eastern District of New York and elsewhere in the United States as well as abroad. The ELGINDY Enterprise engaged in, and its activities affected, interstate and foreign commerce. The ELGINDY Enterprise constituted an ongoing organization whose members functioned as a continuing unit for a common purpose of achieving the objectives of the enterprise.

xxxv) The chief purpose of the ELGINDY Enterprise was to obtain money for its members and associates by trading on material, non-public information that had been misappropriated from the FBI and the SEC, by manipulating the market to deflate artificially the price of stocks that they had short sold, and by extorting free shares of stock from company insiders.
xxxvi) Among the means and methods by which the defendants AMR I. ELGINDY, JEFFREY A. ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE, together with others, conducted and participated in the conduct of the affairs of the ELGINDY Enterprise were various criminal activities, including securities fraud, extortion and obstruction of justice.

xxxvii) In or about and between March 2000 and May 2002, both dates being approximate and inclusive, within the Eastern District of New York and elsewhere, the defendants AMR I. ELGINDY, JEFFREY A. ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE, together with others, being persons employed by and associated with the ELGINDY Enterprise, knowingly and intentionally conspired to violate Title 18, United States Code, Section 1962(c), that is, to conduct and participate, directly and indirectly, in the conduct of the affairs of the ELGINDY Enterprise through a pattern of racketeering activity as defined in Title 18, United States Code, Sections 1961(1) and 1961(5). The pattern of racketeering activity through which the defendants agreed to conduct the affairs of the enterprise consisted of the acts set forth below. Each defendant agreed that a conspirator would commit at least two acts of racketeering activity in the conduct of the affairs of the enterprise.

PATTERN OF RACKETEERING ACTIVITY
Racketeering Act One
(Securities Fraud Conspiracy)

xxxviii) In or about and between March 2000 and May 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, JEFFREY A. ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE, together with Derrick W. Cleveland and others, did knowingly and willfully conspire to use and employ manipulative and deceptive devices and contrivances directly and indirectly, by use of means and instrumentalities of interstate commerce and the mails, in contravention of Rule 10b-5 of the Rules and Regulations of the SEC (Title 17, Code of Federal Regulations, Section 240.10b-5), and directly and indirectly to (a) employ devices, schemes and artifices to defraud; (b) make untrue statements of material facts and omit to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; and (c) engage in acts, practices and a course of business which would and did operate as a fraud and deceit upon members of the investing public, in connection with purchases and sales of securities of the Targeted Companies, in violation of Title 15, United States Code, Sections 78j(b) and 78ff, all in violation of Title 18, United States Code, Section 371.

xxxix) It was a further part of the conspiracy that between March 2000 and May 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY and JONATHAN DAWS, and others, solicited, obtained and received from the defendant JEFFREY A. ROYER, and, later, ELGINDY, ROYER, and others, solicited, obtained and received from the defendant LYNN WINGATE, material, non-public information concerning Targeted Companies and associated individuals, to wit: confidential law enforcement and regulatory information, which information had been unlawfully misappropriated from the Federal Bureau of Investigation by ROYER and WINGATE in violation of their fiduciary and other duties of trust and confidence, and which information was obtained and received before the information was publicly disclosed to the investing public.

xl) It was a further part of the conspiracy that between March 2000 and May 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, JEFFREY A. ROYER, JONATHAN DAWS, TROY PETERS and LYNN WINGATE, together with others, devised, implemented and oversaw a fraudulent scheme to deflate artificially the price of various companies’ stock that they short sold so that they could profit by buying it back later at a lower price. ELGINDY, ROYER, DAWS and others sought to accomplish their manipulation by making false and misleading statements, and by coordinating the release of negative information, some of which was false and misleading, with short selling in a manner designed to exaggerate the negative market sentiment for the stock.

xli) In furtherance of the conspiracy and to effect the objectives thereof, within the Eastern District of New York and elsewhere, the defendants AMR I. ELGINDY, JEFFREY A. ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE, and their co-conspirators committed and caused to be committed the following:

OVERT ACTS

Job Offer

a. On or about February 26, 2001, the defendant AMR I. ELGINDY offered the defendant JEFFREY A. ROYER a job at Pacific Equity Investigations.

b. On or about February 26, 2001, the defendant JEFFREY A. ROYER accepted the defendant AMR I. ELGINDY's job offer to work at Pacific Equity Investigations.

Payments to ROYER

c. On or about November 28, 2000, Derrick W. Cleveland wired $8,500.00 to the account of the defendant JEFFREY A. ROYER.

d. On or about January 30, 2001, Derrick W. Cleveland wired $5,000.00 to the account of the defendant JEFFREY A. ROYER.

e. On or about May 22, 2001, Derrick W. Cleveland wired $9,925.00 to the account of the defendant JEFFREY A. ROYER.

f. On or about May 31, 2001, Derrick W. Cleveland wired $7,000.00 to the account of the defendant JEFFREY A. ROYER.
Broadband

g. On or about March 21, 2000, the defendant AMR I. ELGINDY short sold approximately 2,000 shares of the stock of Broadband, a company listed on the Over the Counter Bulletin Board ("OTCBB").

h. On or about August 31, 2000, Derrick W. Cleveland short sold approximately 10,000 shares of the stock of Broadband.

Potomac

i. On or about August 3, 2000, the defendant JEFFREY A. ROYER bought approximately 850 shares of the stock of Potomac, a company listed on the OTCBB.

j. On or about August 4, 2000, Derrick W. Cleveland bought approximately 1,000 shares of Potomac stock.

k. On or about August 4, 2000, the defendant JONATHAN DAWS, who was in Texas, telephoned Derrick W. Cleveland, who was in Oklahoma.

l. On or about August 4, 2000, the defendant JONATHAN DAWS bought approximately 12,000 shares of Potomac stock.
Company No. 1

m. On or about November 10, 2000, Derrick W. Cleveland sent to the defendant AMR I. ELGINDY confidential law enforcement information that he had obtained from the defendant JEFFREY A. ROYER regarding a company listed on the OTCBB ("Company No. 1").

n. On or about November 10, 2000, the defendant AMR I. ELGINDY short sold approximately 2,100 shares of the stock of Company No. 1.

o. On or about November 10, 2000, the defendant JONATHAN DAWS short sold approximately 3,000 shares of the stock of Company No. 1.

p. On or about November 10, 2000, Derrick W. Cleveland short sold approximately 1,000 shares of the stock of Company No. 1.

q. On December 10, 2000, at approximately 5:01 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room, regarding Company No. 1, "[t]he FBI are involved."

r. On December 12, 2000, at approximately 11:49 a.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room, regarding Company No. 1, "[t]his is a real scam and a real investigation ... so lets all [use] the info we have dug up ... to our advantage."

s. On December 22, 2000, at approximately 11:40 a.m., the defendant JEFFREY A. ROYER searched the ACS database for information and accessed nonpublic information regarding the president of Company No. 1.

t. On December 22, 2000, between approximately 11:40 a.m. and 12:40 p.m., the defendant JEFFREY A. ROYER communicated the information from the ACS database to Derrick W. Cleveland, who then communicated this information from the ACS database to the defendant AMR I. ELGINDY.

u. On December 22, 2000, at approximately 12:42 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room, regarding Company No. 1, "[Company No. 1's president] was involved in a bank fraud case in Boston ...im hearing ... very sketchy details filtering in now."

v. On December 28, 2000, at approximately 12:58 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room, regarding Company No. 1, "I have some names on [Company No. 1] ... These names are from the FBI."

w. On or about January 2, 2001, the defendant JEFFREY A. ROYER searched the NCIC database and found criminal history information regarding the president of Company No. 1.

x. On or about January 3, 2001, the defendant AMR I. ELGINDY issued a research report regarding Company No. 1, which disclosed its president's criminal history.

y. On January 12, 2001, at approximately 4:44 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room, regarding Company No. 1, "the 3 investigations are wire fraud, mkt manipulation, and mail fraud officially by the FBI SEC is doing a Title 15 investigation.. and none of this can leave or go public .. if you do you will be pros ... that’s a fact directly from the FBI.. erase the log..."

Company No. 2

z. On or about November 17, 2000, the defendant JEFFREY A. ROYER obtained information from an SEC Enforcement Attorney regarding the SEC’s investigation of Company No. 2.

aa. On or about November 24, 2000, Derrick W. Cleveland short sold approximately 2,000 shares of the stock of Company No. 2.

bb. On or about November 24, 2000, the defendant AMR I. ELGINDY short sold approximately 1,000 shares of the stock of Company No. 2.

cc. On or about November 24, 2000, the defendant JONATHAN DAWS short sold approximately 2,800 shares of the stock of Company No. 2.

Company No. 3

dd. On or about March 1, 2001, the defendant JEFFREY A. ROYER obtained information from an SEC Enforcement Attorney regarding the SEC’s investigation of Company No. 3.

ee. On or about March 1, 2001, the defendant JEFFREY A. ROYER communicated the information regarding the SEC’s investigation of Company No. 3 to the defendant JONATHAN DAWS.

ff. On March 1, 2001, at approximately 4:36 p.m., the defendant JONATHAN DAWS stated in the MIRC chat room regarding Company No. 3, "No one repeat this ... just talked to FBI agent ... [Company No. 3] under investigation by SEC ... maybe FBI gets involved as well ... nice to get confirmation..."

gg. On or about March 2, 2001, the defendant JONATHAN DAWS short sold approximately 5,500 shares of the stock of Company No. 3.

hh. On or about March 2, 2001, the defendant AMR I. ELGINDY short sold approximately 1,000 shares of the stock of Company No. 3.

Company No. 4

ii. On or about March 23, 2001, the defendant JEFFREY A. ROYER searched the ACS database and accessed nonpublic information concerning a company listed on the NASDAQ National Market System ("Company No. 4").

jj. On or about March 26, 2001, the defendant JONATHAN DAWS bought approximately 20,000 shares of the stock of Company No. 4.

kk. On or about March 26, 2001, the defendant AMR I. ELGINDY bought approximately 2,000 shares of the stock of Company No. 4.

Company No. 5

ll. On or about May 4, 2001, the defendant JEFFREY A. ROYER searched the ACS database and accessed nonpublic information concerning a company listed on the OTCBB ("Company No. 5").

mm. On or about May 9, 2001, Derrick W. Cleveland short sold approximately 400 shares of the stock of Company No. 5 and covered.

nn. On or about May 11, 2001, the defendant AMR I. ELGINDY short sold approximately 500 shares of the stock of Company No. 5.

oo. On or about May 15, 2001, the defendant JEFFREY A. ROYER searched the ACS database and accessed nonpublic information concerning Company No. 5.

pp. On or about May 17, 2001, the defendant JONATHAN DAWS short sold approximately 11,700 shares of the stock of Company No. 5.

qq. On or about May 19, 2001, the defendant JEFFREY A. ROYER met with the defendant AMR I. ELGINDY and others, in Las Vegas, Nevada.

rr. On May 21, 2001, at approximately 4:39 p.m., the defendant JEFFREY A. ROYER obtained information from an SEC Enforcement Attorney regarding the SEC’s investigation of Company No. 5.

ss. On May 22, 2001, at approximately 11:06 a.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room regarding Company No. 5, "... i did get the [Company No. 5 information] from the us govt ... cant say what branch ..."

tt. On or about May 22, 2001, the defendant AMR I. ELGINDY wrote a check to the defendant JEFFREY A. ROYER in the amount of $428.71.

uu. On or about May 23, 2001, the defendant JONATHAN DAWS short sold approximately 1,000 shares of the stock of Company No. 5.

vv. On May 24, 2001, at approximately 1:05 p.m., the defendant JEFFREY A. ROYER searched the ACS database and accessed nonpublic information concerning Company No. 5.

ww. On May 24, 2001, at approximately 1:35 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room and in e-mails to his subscribers nationwide, including subscribers in the Eastern District of New York, regarding Company No. 5, "[Company No. 5] <– 3 difft FBI investigations into [this] guys son Jason ([Jason’s father] convicted felon of securities fraud) has large blocks of [Company No. 5's] stock, SEC is onto him) ..."

Company No. 6

xx. On or about and between March 26, 2001 and May 21, 2001, the defendant JEFFREY A. ROYER obtained information from an SEC Enforcement Attorney regarding the SEC’s investigation of a company listed on the OTCBB ("Company No. 6").

yy. On or about and between July 26, 2001 and August 23, 2001, the defendant JEFFREY A. ROYER searched the ACS database and accessed nonpublic information concerning Company No. 6.

zz. On or about July 30, 2001, the defendant AMR I. ELGINDY short sold approximately 7,000 shares of the stock of Company No. 6.

aaa. On or about August 13, 2001, the defendant AMR I. ELGINDY bought approximately 4,000 shares of the stock of Company No. 6 to cover prior short sales.

Company No. 7

bbb. On or about June 22, 2001, the defendant JEFFREY A. ROYER searched the ACS database and accessed nonpublic information concerning a company listed on the OTCBB ("Company No. 7").

ccc. On or about June 22, 2001, the defendant JEFFREY A. ROYER obtained information from an SEC Enforcement Attorney regarding the SEC’s investigation of Company No. 7.

ddd. On or about June 22, 2001, the defendant AMR I. ELGINDY short sold approximately 2,500 shares of the stock of Company No. 7.

eee. On or about June 22, 2001, the defendant AMR I. ELGINDY directed his subscribers, including subscribers in the Eastern District of New York, in the AnthonyPacific.com chat room and by e-mail, to short sell the stock of Company No. 7.

fff. On August 15, 2001, at approximately 11:26 a.m., the defendant AMR I. ELGINDY telephoned the defendant TROY PETERS at First Geneva Securities.

ggg. On or about August 15, 2001, the defendants AMR I. ELGINDY and TROY M. PETERS obtained a large, below-market-price block of the stock of Company No. 7.

hhh. On August 16, 2001, at approximately 11:45 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room and in e-mails to subscribers nationwide, including subscribers in the Eastern District of New York, "[Company No. 7] <------- Officially terminating coverage and cover positions at 2.45"

Company No. 8
iii. On or about September 19, 2001, the defendant JEFFREY A. ROYER searched the ACS database and accessed nonpublic information concerning a company listed on the OTCBB ("Company No. 8") in this regard.

jjj. On or about September 21, 2001, the defendant AMR I. ELGINDY short sold approximately 3,500 shares of the stock of Company No. 8.

Nuclear Solutions

kkk. On December 19, 2001, at approximately 11:15 a.m., the defendant JEFFREY A. ROYER searched the NCIC database and found criminal history information regarding the founder of Nuclear Solutions, a company listed on the OTCBB.

lll. On December 19, 2001, at approximately 1:31 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room and in e-mails to his subscribers, "NSOL - CEO ... is a convicted felon ..."

mmm. On or about December 19, 2001, the defendant AMR I. ELGINDY short sold approximately 12,200 shares of the stock of Nuclear Solutions.

nnn. On or about December 31, 2001, the defendant AMR I. ELGINDY short sold approximately 10,000 shares of the stock of Nuclear Solutions.

ooo. On January 3, 2002, at approximately 2:53 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room and in e-mails to his subscribers, "NSOL – short 20% @ 2.05 (add).

ppp. On or about January 31, 2002, the defendant AMR I. ELGINDY short sold approximately 10,000 shares of the stock of Nuclear Solutions.

qqq. On January 31, 2002, at approximately 10:14 p.m., the defendant AMR I. ELGINDY stated in the AnthonyPacific.com chat room and in e-mails to his subscribers, "[w]e are pulling out of NSOL" and "NSOL <--- coverage [terminated] for good."

Company No. 9

rrr. On or about March 4, 2002, the defendant LYNN WINGATE searched the ACS database and accessed nonpublic information concerning the Chief Executive Officer of a company listed on the NASDAQ National Market System ("Company No. 9").

sss. On or about March 4, 2002, the defendant LYNN WINGATE telephoned the defendant JEFFREY A. ROYER.

ttt. On or about April 24, 2002, the defendant JEFFREY A. ROYER met with the defendant JONATHAN DAWS in DAWS’s office.

uuu. On or about April 26, 2002, the defendant JONATHAN DAWS short sold approximately 24,000 shares of the stock of Company No. 9.

Racketeering Acts Two Through Eight
(Securities Fraud)

xlii) On or about and between the dates set forth below, both dates being approximate and inclusive, within the Eastern District of New York and elsewhere, the defendants set forth below, together with others, did knowingly and willfully use and employ manipulative and deceptive devices and contrivances in violation of Rule 10b-5 of the Rules and Regulations of the SEC (Title 17, Code of Federal Regulations, Section 240.10b-5), in that the defendants, together with others, did knowingly and willfully, directly and indirectly: (a) employ devices, schemes and artifices to defraud; (b) make untrue statements of material facts and omit to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; and (c) engage in acts, practices and courses of business which would and did operate as a fraud and deceit upon members of the investing public, in connection with the purchases and sales of the securities set forth below, by use of means and instrumentalities of interstate commerce and the mails, in violation of Title 15, United States Code, Section 78j(b).

ACT
DEFENDANTS
DATES
SECURITY

TWO
ELGINDY, ROYER and DAWS
October 2000 and March 2001
Company No. 1

THREE
ELGINDY, ROYER and DAWS
February 2001 and June 2001
Company No. 3

FOUR
ELGINDY, ROYER and DAWS
March 2001 and August 2001
Company No. 4

FIVE
ELGINDY, ROYER and DAWS
April 2001 and September 2001
Company No. 5

SIX
ELGINDY, ROYER and DAWS
March 2001 and September 2001
Company No. 6

SEVEN
ELGINDY, ROYER, DAWS and PETERS
May 2001 and September 2001
Company No. 7

EIGHT
ELGINDY, ROYER, DAWS and PETERS
November 2001 and April 2002
Company No. 8

Racketeering Act Nine
(Extortion Conspiracy)

xliii) In or about and between May 2001 and February 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, JEFFREY A. ROYER, JONATHAN DAWS and TROY M. PETERS, and Derrick W. Cleveland and others, did knowingly and intentionally conspire to obstruct, delay and affect commerce, and the movement of articles and commodities in commerce, by extortion, in that the defendants and others conspired to obtain property, to wit, stock and other things of value, with the consent of the owner of such stock and other things of value, which consent was to be induced by the wrongful use of actual and threatened force, violence and fear, in violation of Title 18, United States Code, Section 1951(a).

Racketeering Act Ten
(Extortion)

xliv) In or about and between May 2001 and August 2001, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, JEFFREY A. ROYER, JONATHAN DAWS and TROY M. PETERS, and Derrick W. Cleveland and others, did knowingly and intentionally obstruct, delay and affect commerce, and the movement of articles and commodities in commerce, by extortion, in that the defendants and others obtained property, to wit, the stock of Company No. 7, with the consent of the owner of such stock, which consent was induced by the wrongful use of actual and threatened force, violence and fear, in violation of Title 18, United States Code, Section 1951(a).

Racketeering Act Eleven
(Extortion)

xlv) In or about and between December 2001 and February 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, JEFFREY A. ROYER and TROY M. PETERS, and Derrick W. Cleveland and others, did knowingly and intentionally obstruct, delay and affect commerce, and the movement of articles and commodities in commerce, by extortion, in that the defendants and others obtained property, to wit, the stock of Nuclear Solutions, with the consent of the owner of such stock, which consent was induced by the wrongful use of actual and threatened force, violence and fear, in violation of Title 18, United States Code, Section 1951(a).

Racketeering Act Twelve
(Obstruction of Justice)

xlvi) The defendants AMR I. ELGINDY, JEFFREY A. ROYER and LYNN WINGATE, and other members and associates, committed the following acts involving obstruction of justice, any one of which alone constitutes the commission of Racketeering Act Twelve.

A. Obstruction of Justice Conspiracy

xlvii) In or about and between October 2001 and May 2002, both dates being approximate and inclusive, within the Eastern District of New York and elsewhere, the defendants AMR I. ELGINDY, also known as "Tony Elgindy" and "Anthony Pacific," JEFFREY A. ROYER and LYNN WINGATE, together with others, did knowingly and willfully conspire to corruptly endeavor to influence, obstruct and impede the due administration of justice with respect to matters before a grand jury in the Eastern District of New York and elsewhere, in violation of Title 18, United States Code, Sections 371 and 1503.

xlviii) It was part of the conspiracy that the defendants accessed and caused to be accessed a confidential FBI database to gain information concerning the EDNY Grand Jury investigation, and provided such information to ELGINDY, ROYER and others.
xlix) In furtherance of the conspiracy, and for the purpose of effecting the objectives thereof, within the Eastern District of New York and elsewhere, the defendants AMR I. ELGINDY, JEFFREY A. ROYER and LYNN WINGATE, and their coconspirators committed and caused to be committed, among others, the following:

OVERT ACTS

a. On or about October 4, 2001, the defendant JEFFREY A. ROYER searched the ACS database for references to "Elgindy" and an individual associated with the defendant AMR I. ELGINDY.

b. On or about October 12, 2001, the defendant JEFFREY A. ROYER searched the ACS database for references to "Elgindy, Anthony."

c. On or about October 17, 2001, the defendant JEFFREY A. ROYER searched the ACS database for references to "Elgindy" and "Royer, Jeff."

d. On or about October 20, 2001, the defendant JEFFREY A. ROYER searched the ACS database for references to "Elgindy, Anthony" and an individual associated with the defendant AMR I. ELGINDY.

e. On or about October 30, 2001, the defendant JEFFREY A. ROYER searched the ACS database for references to "Elgindy, Anthony."

f. On or about November 6, 2001, the defendant JEFFREY A. ROYER searched the ACS database for references to "Royer"

and "Royer, J."

g. On or about November 7, 2001, the defendant JEFFREY A. ROYER searched the ACS database for references to "Elgindy, Anthony."

h. On or about April 18, 2002, the defendant LYNN WINGATE searched the ACS database for references to "Elgindy" and "Royer."

i. On or about April 18, 2002, after searching the ACS database for references to "Elgindy, Anthony" and "Royer, Jeff," the defendant LYNN WINGATE telephoned the defendant JEFFREY A. ROYER.

j. On or about April 18, 2002, the defendant JEFFREY A. ROYER telephoned the defendant AMR I. ELGINDY.

k. On or about April 23, 2002, the defendant LYNN WINGATE searched the ACS database for references to "Wingate."

l. On or about April 23, 2002, the defendant JEFFREY A. ROYER telephoned the defendant AMR I. ELGINDY.

B. Obstruction of Justice

l) The allegations contained in paragraphs 1 through 35 and 49 are realleged and incorporated as if fully set forth in this paragraph.

li) In or about and between October 2001 and May 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, JEFFREY A. ROYER and LYNN WINGATE, together with others, did knowingly, intentionally and corruptly endeavor to influence, obstruct and impede the due administration of justice with respect to matters before a grand jury in the Eastern District of New York and elsewhere, by accessing and causing to be accessed a confidential FBI database in order to gain information concerning the EDNY Grand Jury Investigation to provide it to ELGINDY and others, in violation of Title 18, United States Code, Sections 1503 and 2.

(Title 18, United States Code, Sections 1962(d), 1963, 2 and 3551 et seq.)

COUNT TWO
(Securities Fraud Conspiracy)

lii) The allegations contained in paragraphs 1 through 32 and 41 are realleged and incorporated as if fully set forth in this paragraph.

liii) In or about and between March 2000 and May 2002, both dates being approximate and inclusive, within the Eastern District of New York and elsewhere, the defendants AMR I. ELGINDY, also known as "Tony Elgindy" and "Anthony Pacific," JEFFREY A. ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE, together with others, did knowingly and willfully conspire to use and employ manipulative and deceptive devices and contrivances directly and indirectly, by use of means and instrumentalities of interstate commerce and the mails, in contravention of Rule 10b-5 of the Rules and Regulations of the SEC (Title 17, Code of Federal Regulations, Section 240.10b-5), and directly and indirectly to (a) employ devices, schemes and artifices to defraud; (b) make untrue statements of material facts and omit to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; and (c) engage in acts, practices and a course of business which would and did operate as a fraud and deceit upon members of the investing public, in connection with purchases and sales of securities of the Targeted Companies, in violation of Title 15, United States Code, Sections 78j(b) and 78ff.

liv) It was a part of the conspiracy that between March 2000 and May 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY and JONATHAN DAWS, and others, solicited, obtained and received from the defendant JEFFREY A. ROYER, and, later, ELGINDY, ROYER, and others, solicited, obtained and received from the defendant LYNN WINGATE material, non-public information concerning Targeted Companies which they then used to make decisions whether to purchase and sell the stocks of the Targeted Companies.

lv) It was a further part of the conspiracy that between March 2000 and May 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, JEFFREY A. ROYER and JONATHAN DAWS, together with others, devised, implemented and oversaw a fraudulent scheme to deflate artificially the price of various companies’ stock that they short sold so that they could profit by buying it back later at a lower price.
(Title 18, United States Code, Section 371 and 3551 et seq.)

COUNTS THREE THROUGH NINE
(Securities Fraud)

lvi) The allegations contained in paragraphs 1 through 32 are realleged and incorporated as if fully set forth in this paragraph.

lvii) In or about and between the dates set forth below, both dates being approximate and inclusive, within the Eastern District of New York and elsewhere, the defendants set forth below, together with others, did knowingly and willfully use and employ manipulative and deceptive devices and contrivances in violation of Rule 10b-5 of the Rules and Regulations of the SEC (Title 17, Code of Federal Regulations, Section 240.10b-5), in that the defendants, together with others, did knowingly and willfully, directly and indirectly: (a) employ devices, schemes and artifices to defraud; (b) make untrue statements of material facts and omit to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; and (c) engage in acts, practices and courses of business which would and did operate as a fraud and deceit upon members of the investing public, in connection with the purchases and sales of the securities set forth below, by use of means and instrumentalities of interstate commerce and the mails.

COUNT
DEFENDANTS
DATES
SECURITY

THREE
AMR I. ELGINDY, JEFFREY A. ROYER and JONATHAN DAWS
October 2000 and March 2001
Company No. 1

FOUR
AMR I. ELGINDY, JEFFREY A. ROYER and JONATHAN DAWS
February 2001 and June 2001
Company No. 3

FIVE
AMR I. ELGINDY, JEFFREY A. ROYER and JONATHAN DAWS
March 2001 and August 2001
Company No. 4

SIX
AMR I. ELGINDY, JEFFREY A. ROYER and JONATHAN DAWS
April 2001 and September 2001
Company No. 5

COUNT
DEFENDANTS
DATES
SECURITY

SEVEN
AMR I. ELGINDY, JEFFREY A. ROYER and JONATHAN DAWS
March 2001 and September 2001
Company No. 6

EIGHT
AMR I. ELGINDY, JEFFREY A. ROYER, JONATHAN DAWS and TROY M. PETERS
May 2001 and September 2001
Company No. 7

NINE
AMR I. ELGINDY, JEFFREY A. ROYER, JONATHAN DAWS and TROY M. PETERS
November 2001 and April 2002
Company No. 8

(Title 15, United States Code, Section 78j(b) and 78ff; Title 18, United States Code, Sections 2 and 3551 et seq.)

COUNT TEN
(Extortion Conspiracy)
lviii) The allegations contained in paragraphs 1 through 32 are realleged and incorporated as if fully set forth in this paragraph.

lix) In or about and between November 2001 and February 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, also known as "Tony Elgindy" and "Anthony Pacific," JEFFREY A. ROYER and TROY M. PETERS, together with others, did knowingly and intentionally conspire to obstruct, delay and affect, commerce, and the movement of articles and commodities in commerce, by extortion, in that the defendants and others conspired to obtain property, to wit, stock and other things of value, with the consent of the owner of such stock and other things of value, which consent was to be induced by the wrongful use of actual and threatened force, violence and fear.
(Title 18, United States Code, Sections 1951(a) and 3551 et seq.)

COUNT ELEVEN
(Extortion)
lx) The allegations contained in paragraphs 1 through 32 are realleged and incorporated as if fully set forth in this paragraph.
lxi) In or about and between May 2001 and August 2001, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, JEFFREY A. ROYER, JONATHAN DAWS and TROY M. PETERS, and Derrick W. Cleveland and others, did knowingly and intentionally obstruct, delay and affect commerce, and the movement of articles and commodities in commerce, by extortion, in that the defendants and others obtained property, to wit, the stock of Company No. 7, with the consent of the owner of such stock, which consent was to be induced by the wrongful use of actual and threatened force, violence and fear.
(Title 18, United States Code, Sections 1951(a), 2 and 3551 et seq.)

COUNT TWELVE
(Extortion)
lxii) The allegations contained in paragraphs 1 through 3 are realleged and incorporated as if fully set forth in this paragraph.
lxiii) In or about and between December 2001 and February 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, JEFFREY A. ROYER and TROY M. PETERS, and Derrick W. Cleveland and others, did knowingly and intentionally obstruct, delay and affect commerce, and the movement of articles and commodities in commerce, by extortion, in that the defendants and others obtained property, to wit, the stock of Nuclear Solutions, with the consent of the owner of such stock, which consent was to be induced by the wrongful use of actual and threatened force, violence and fear.
(Title 18, United States Code, Sections 1951(a), 2 and 3551 et seq.)

COUNT THIRTEEN
(Obstruction of Justice Conspiracy)

lxiv) The allegations contained in paragraphs 1 through 32, 48 and 49 are realleged and incorporated as if fully set forth in this paragraph.

lxv) In or about and between October 2001 and May 2002, both dates being approximate and inclusive, within the Eastern District of New York and elsewhere, the defendants AMR I. ELGINDY, also known as "Tony Elgindy" and "Anthony Pacific," JEFFREY A. ROYER and LYNN WINGATE, together with others, did knowingly and willfully conspire to corruptly endeavor to influence, obstruct and impede the due administration of justice with respect to matters before a grand jury in the Eastern District of New York and elsewhere, in violation of Title 18, United States Code, Section 1503.
lxvi) It was part of the conspiracy that the defendants accessed and caused to be accessed a confidential FBI database to gain information concerning the EDNY Grand Jury investigation, and provided such information to ELGINDY, ROYER and others.
(Title 18, United States Code, Section 371 and 3551 et seq.)

COUNT FOURTEEN
(Obstruction of Justice)

lxvii) The allegations contained in paragraphs 1 through 32, 48 and 49 are realleged and incorporated as if fully set forth in this paragraph.

lxviii) In or about and between October 2001 and May 2002, both dates being approximate and inclusive, the defendants AMR I. ELGINDY, JEFFREY A. ROYER and LYNN WINGATE, together with others, did knowingly, intentionally and corruptly endeavor to influence, obstruct and impede the due administration of justice with respect to matters before a grand jury in the Eastern District of New York and elsewhere, the defendants accessed and caused to be accessed, a confidential FBI database to gain information concerning the EDNY Grand Jury investigation, and provided such information to ELGINDY, ROYER and others.
(Title 18, United States Code, Sections 1503, 2 and 3551 et seq.)

COUNT FIFTEEN
(Witness Tampering)

lxix) The allegations contained in paragraphs 1 through 32 are realleged and incorporated as if fully set forth in this paragraph.

lxx) In or about and between May 23, 2002 and May 26, 2002, in connection with a criminal case pending in United States District Court for the Eastern District of New York, the defendant JEFFREY A. ROYER did knowingly, intentionally and corruptly attempt to persuade another person, with intent to hinder, delay and prevent the communication to a law enforcement officer of the United States of information relating to the commission and possible commission of a federal offense, to wit: by instructing and suggesting that a witness, whose identity is known to the grand jury, make false and otherwise misleading statements to Special Agents of the Federal Bureau of Investigation in connection with a criminal case pending in United States District Court for the Eastern District of New York.
(Title 18, United States Code, Section 1512(b)(3), 2 and 3551 et seq.)

COUNTS SIXTEEN THROUGH THIRTY-THREE
(Securities and Wire Fraud - Misleading Subscribers)

lxxi) At or about the same time that the defendant AMR I. ELGINDY was engaging in the illegal schemes set forth in paragraphs 1 through 32, which are realleged and incorporated as if fully set in this paragraph, ELGINDY made false statements to his subscribers regarding his own trading to induce them and others to trade in a manner that improved ELGINDY’s own execution prices to the detriment of such subscribers and others.

Securities Fraud

lxxii) In or about and between March 2000 and May 2002, both dates being approximate and inclusive, within the Eastern District of New York and elsewhere, the defendant AMR I. ELGINDY, also known as "Tony Elgindy" and "Anthony Pacific," did knowingly and willfully, directly and indirectly, use and employ manipulative and deceptive devices and contrivances in violation of Rule 10b-5 of the Rules and Regulations of the SEC (Title 17, Code of Federal Regulations, Section 240.10b-5), in that the defendant did knowingly and willfully, directly and indirectly, (a) employ devices, schemes, and artifices to defraud; (b) make untrue statements of material fact and omit to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; and (c) engage in acts, practices, and courses of business which would and did operate as a fraud and deceit upon members of the investing public, in connection with purchases and sales of the securities set forth below, and by use of means and instrumentalities of interstate commerce and the mails

COUNT
NAME OF SECURITY

SIXTEEN
Company No. 5

SEVENTEEN
Company No. 6

EIGHTEEN
A company listed on the OTCBB ("Company No. 10")

NINETEEN
A company listed on the OTCBB ("Company No. 11")

TWENTY
A company listed on the OTCBB ("Company No. 12")

TWENTY-ONE
A company listed on the OTCBB ("Company No. 13")

TWENTY-TWO
Nuclear Solutions

(Title 15, United States Code, Section 78j(b) and 78ff; Title 18, United States Code, Sections 2 and 3551 et seq.)
Wire Fraud

lxxiii) On or about and between November 2000 and February 2002, both dates being approximate and inclusive, within the Eastern District of New York and elsewhere, the defendant AMR I. ELGINDY, together with others, did knowingly and intentionally devise a scheme and artifice (a) to defraud purchasers and sellers of various stocks and deprive such purchasers and sellers of the intangible right of ELGINDY’s honest services, and (b) to obtain money and property from such purchasers and sellers by means of materially false and fraudulent pretenses, representations and promises, and for the purpose of executing such scheme and artifice and attempting to do so, transmitted and caused to be transmitted by means of wire communication in interstate and foreign commerce signs, signals, and sounds, as described below.

COUNT
DATE
DESCRIPTION
TO
FROM

TWENTY-THREE
February 16, 2001
Chat Room Discussion re Company No. 10
AnthonyPacific.com Subscribers in the Eastern District of New York
ELGINDY in California

TWENTY-FOUR
February 20, 2001
E-mail re Company No. 10
AnthonyPacific.com Subscribers in the Eastern District of New York
ELGINDY in California

TWENTY-FIVE
May 11, 2001
Chat Room Discussion re Company No. 11
AnthonyPacific.com Subscribers in the Eastern District of New York
ELGINDY in California

TWENTY-SIX
May 24, 2001
E-Mail re Company No. 5
AnthonyPacific.com Subscribers in the Eastern District of New York
ELGINDY in California

TWENTY-SEVEN
June 8, 2001
Chat Room Discussion re Company No. 6
AnthonyPacific.com Subscribers in the Eastern District of New York
ELGINDY in California

TWENTY-EIGHT
June 21, 2001
E-mail re Company No. 6
AnthonyPacific.com Subscribers in the Eastern District of New York
ELGINDY in California

TWENTY-NINE
August 17, 2001
Chat Room Discussion re Company No. 12
AnthonyPacific.com Subscribers in the Eastern District of New York
ELGINDY in California

THIRTY
August 23, 2001
E-mail re Company No. 12
AnthonyPacific.com Subscribers in the Eastern District of New York
ELGINDY in California

THIRTY-ONE
September 17, 2001
E-mail re Company No. 12
AnthonyPacific.com Subscribers in the Eastern District of New York
ELGINDY in California

THIRTY-TWO
October 23, 2001
Chat Room Discussion re Company No. 13
AnthonyPacific.com Subscribers in the Eastern District of New York
ELGINDY in California

THIRTY-THREE
February 1, 2002
E-mail re Company No. Nuclear Solutions
AnthonyPacific.com Subscribers in the Eastern District of New York
ELGINDY in California

(Title 18, United States Code, Sections 1343, 1346, 2
and 3551 et seq.)

CRIMINAL FORFEITURE ALLEGATIONS

FIRST FORFEITURE ALLEGATION
(AS TO COUNT ONE)

lxxiv) The allegations contained in Count One are realleged and incorporated as if fully set forth in this paragraph for the purpose of alleging forfeiture pursuant to the provisions of Title 18, United States Code, Section 1963. Pursuant to Rule 32.2, Fed. R. Crim. P., notice is hereby given to the defendants AMR I. ELGINDY, also known as "Tony Elgindy" and "Anthony Pacific," JEFFREY A. ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE that the United States will seek forfeiture as part of any sentence in accordance with Title 18, United States Code, Section 1963 in the event of any defendant’s conviction under Count One of this Indictment.

lxxv) The defendants, AMR I. ELGINDY, also known as "Tony Elgindy" and "Anthony Pacific," JEFFREY A. ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE:

a. have acquired and maintained interests in violation of Title 18, United States Code, Section 1962, which interests are subject to forfeiture to the United States pursuant to Title 18, United States Code, Section 1963(a)(1);

b. have an interest in, security of, claims against, and property and contractual rights which afford a source of influence over, the enterprise named and described herein which the defendants established, operated, controlled, conducted, and participated in the conduct of, in violation of Title 18, United States Code, Section 1962, which interests, securities, claims, and rights are subject to forfeiture to the United States pursuant to Title 18, United States Code, Section 1963(a)(2);

c. have property constituting and derived from proceeds obtained, directly and indirectly, from racketeering activity, in violation of Title 18, United States Code, Section 1962, which property is subject to forfeiture to the United States pursuant to Title 18, United States Code, Section 1963(a)(3).

lxxvi) The interests of the defendants AMR I. ELGINDY, also known as "Tony Elgindy" and "Anthony Pacific," JEFFREY A. ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE subject to forfeiture to the United States pursuant to Title 18, United States Code, Section 1963(a), include, but are not limited to, the defendants’ interests in the following:

a. all funds on deposit in any and all accounts and certificates of deposit, and any valuables in safe deposit boxes maintained by or on behalf of Amr I. Elgindy, also known as "Anthony Elgindy","Tony Elgindy" and "Anthony Pacific", Mary Faith Elgindy, and Pacific Equity Investigations, at the following financial institutions: (i) Bank of America, including, but not limited to, account nos. 11827-02640, 11821-04883, and 11822-17682; (ii) Bank of Montreal, Vancouver, British Columbia, including, but not limited to, account no. 4585-492; (iii) Global Securities, Vancouver, British Columbia, including, but not limited to, Canadian Imperial Bank of Commerce account no. 0001-0004-77117; (iv) Salomon Smith Barney, including, but not limited to, account nos. 673-08550-19-170, 673-08549-13-170, 673-08562-15-170, 673-08563-14-170, 673-08561-16-170, 673-08548-14-170; and (v) Royal Bank, Vancouver, British Columbia, including, but not limited to, account no. 00010-003-401-172-2; and (vi) all proceeds traceable to these funds (collectively referred to hereinafter as the "Defendant Funds");

b. the premises and real property located at 3371 Calle Tres Vistas, Encinitas, California, and all proceeds traceable thereto (the "3371 Calle Tres Vistas property");

c. a 2001 Rolls Royce Bentley vehicle, VIN SCBZK25E91CX62537, California license plate no. ZEROBID, registered in the name of Pacific Equity Investigations and Anthony Elgindy (the "2001 Bentley vehicle");

d. a 2000 Lincoln Town Car, VIN 1L1FM81W4YY903598, California license plate no. 6H01784, registered in the name of Pacific Equity Investigations (the "2000 Lincoln Town Car vehicle");

e. a 2000 Hummer HMCO, VIN 137ZA903XYE188837, California license plate no. 00BID, registered in the name of Pacific Equity Investigations and Tony Elgindy (the "2000 Hummer vehicle");

f. a 2001 Suzuki Grand Vitara, VIN JS3TX92V414100376, California license plate no. 4SYW793, registered in the name of Amr I. Elgindy (the "2001 Suzuki Grand Vitara vehicle");

g. a 1999 Jaguar XJR, VIN SAJPX1845XC859070, California license plate no. 4MNB694, registered in the name of Pacific Equity Investigations and Amr Elgindy (the "1999 Jaguar vehicle");

h. a red, two-door 2001 Ferrari F360 Modena Spyder, bearing VIN number ZFFYT53A510122724 vehicle (the "2001 Ferrari vehicle");

i. all proceeds traceable to the aforesaid vehicles; and

j. all funds on deposit in USAA Federal Savings Bank Account No. 033-1590-8 in the name of Jeffrey A. Royer, up to and including the sum of $16,925.00, and all proceeds traceable thereto (the "defendant Royer funds").

lxxvii) In the event that more than one defendant is convicted of the offense charged in Count One of this Indictment, such defendants are jointly and severally liable for the forfeiture obligations as alleged in paragraphs 75 and 76 above.

lxxviii) If any of the property described in paragraphs 75 and 76 above, as a result of any act or omission of a defendant–

a. Cannot be located upon the exercise of due diligence;

b. Has been transferred or sold to, or deposited with, a third party;

c. Has been placed beyond the jurisdiction of the Court;

d. Has been substantially diminished in value; or

e. Has been commingled with other property which cannot be divided without difficulty;

the Court shall order the forfeiture of any other property of the defendant up to the value of any property set forth in sub-paragraphs 78(a) through 78(e). (Title 18, United States Code, Section 1963)

SECOND FORFEITURE ALLEGATION
(AS TO COUNTS TWO THROUGH TWELVE
AND SIXTEEN THROUGH THIRTY-THREE)

lxxix) The allegations contained in Counts Two through Twelve and Sixteen through Thirty-Three are realleged and incorporated as if fully set forth in this paragraph for the purpose of alleging forfeiture pursuant to the provisions of Title 18, United States Code, Sections 981(a)(1)(C) and Title 28, United States Code, Section 2461(c).

lxxx) Upon conviction of any of the offenses set forth in Counts Two through Twelve and Sixteen through Thirty-Three of this Indictment, pursuant to 18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c), the defendants AMR I. ELGINDY, also known as "Tony Elgindy" and "Anthony Pacific," JEFFREY A. ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE shall forfeit to the United States any and all properties, real and personal, which constitute or are derived from proceeds traceable to an offense constituting "specified unlawful activity," as defined in 18 U.S.C. § 1956(c)(7), to wit, 15 U.S.C. §§ 78j(b) and 78ff, 18 U.S.C. §§ 1343 and 1951, or a conspiracy to commit such an offense.

lxxxi) The interests of the defendants AMR I. ELGINDY, also known as "Tony Elgindy" and "Anthony Pacific," JEFFREY A. ROYER, JONATHAN DAWS, TROY M. PETERS and LYNN WINGATE subject to forfeiture to the United States pursuant to Title 18, United States Code, Section 981(a)(1)(C) and to Title 28, United States Code, Section 2461(c), include, but are not limited to, the following specific properties:

a. all funds on deposit in any and all accounts and certificates of deposit, and any valuables in safe deposit boxes maintained by or on behalf of Amr I. Elgindy, also known as "Anthony Elgindy","Tony Elgindy" and "Anthony Pacific", Mary Faith Elgindy, and Pacific Equity Investigations, at the following financial institutions: (i) Bank of America, including, but not limited to, account nos. 11827-02640, 11821-04883, and 11822-17682; (ii) Bank of Montreal, Vancouver, British Columbia, including, but not limited to, account no. 4585-492; (iii) Global Securities, Vancouver, British Columbia, including, but not limited to, Canadian Imperial Bank of Commerce account no. 0001-0004-77117; (iv) Salomon Smith Barney, including, but not limited to, account nos. 673-08550-19-170, 673-08549-13-170, 673-08562-15-170, 673-08563-14-170, 673-08561-16-170, 673-08548-14-170; and (v) Royal Bank, Vancouver, British Columbia, including, but not limited to, account no. 00010-003-401-172-2; and (vi) all proceeds traceable to these funds (collectively referred to hereinafter as the "Defendant Funds");

b. the 3371 Calle Tres Vistas property;

c. a 2001 Rolls Royce Bentley vehicle, VIN SCBZK25E91CX62537, California license plate no. ZEROBID, registered in the name of Pacific Equity Investigations and Anthony Elgindy (the "2001 Bentley vehicle");

d. a 2000 Lincoln Town Car, VIN 1L1FM81W4YY903598, California license plate no. 6H01784, registered in the name of Pacific Equity Investigations (the "2000 Lincoln Town Car vehicle");

e. a 2000 Hummer HMCO, VIN 137ZA903XYE188837, California license plate no. 00BID, registered in the name of Pacific Equity Investigations and Tony Elgindy (the "2000 Hummer vehicle");

f. a 2001 Suzuki Grand Vitara, VIN JS3TX92V414100376, California license plate no. 4SYW793, registered in the name of Amr I. Elgindy (the "2001 Suzuki Grand Vitara vehicle");

g. a 1999 Jaguar XJR, VIN SAJPX1845XC859070, California license plate no. 4MNB694, registered in the name of Pacific Equity Investigations and Amr Elgindy (the "1999 Jaguar vehicle");

h. a red, two-door 2001 Ferrari F360 Modena Spyder, bearing VIN number ZFFYT53A510122724 vehicle (the "2001 Ferrari vehicle");

i. all proceeds traceable to the aforesaid vehicles; and

j. all funds on deposit in USAA Federal Savings Bank Account No. 033-1590-8 in the name of Jeffrey A. Royer, up to and including the sum of $16,925.00, and all proceeds traceable thereto.

lxxxii) In the event that more than one defendant is convicted of the offenses charged in Counts Two through Twelve and Sixteen through Thirty-Three, such defendants are jointly and severally liable for the forfeiture obligations described in paragraphs 80 and 81 above.

lxxxiii) If any of the property described in paragraphs 80 and 81 above, as a result of any act or omission of a defendant-–

(Title 21, United States Code, Section 853(p), as incorporated by Title 28, United States Code, Section 2461(c))

TRUE BILL

FOREPERSON

ROSLYNN R. MAUSKOPF
UNITED STATES ATTORNEY
EASTERN DISTRICT OF NEW YO