DOW JONES NEWSWIRES
October 24, 2006
NEW YORK -(Dow Jones)- Trader Donald Kent Terrell was sentenced to three years probation and a $5,000 fine for his role in a scheme to manipulate the stock price of publicly traded companies.
Terrell pleaded guilty of conspiracy to commit securities fraud in 2004 and cooperated with the government. He testified in court that he conspired with short seller Anthony Elgindy and others to use non-public information obtained from a Federal Bureau of Investigation agent to manipulate the price of securities.
Elgindy and five co-defendants were charged in 2002 in the U.S. District Court for the Eastern District of New York on charges they conspired to drive down the price of the shares of companies they targeted in a short-selling scheme.
Terrell, who was a member of Elgindy's Web site from December 1999 to May 2002, testified during his trial that he received non-public information on the site and traded on it.
Elgindy was convicted in January 2005 of racketeering, conspiracy and securities fraud. He recently was sentenced to more than 11 years in prison and ordered to forfeit $1.5 million.
Jeffrey Royer, a former Federal Bureau of Investigation special agent, also was found guilty of racketeering conspiracy, securities fraud and obstruction of justice in the case. He was sentenced to six years in prison earlier this month.
Others charged in the case have received probation.