Ex-FBI Agent Gets 6 Years in Stock Case
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Former FBI Special Agent Jeffrey Royer was sentenced Monday to six years in prison for his role in a stock-manipulation case involving penny-stock companies.
Royer was found guilty of conspiracy and securities fraud charges in 2005 along with stock trader Anthony Elgindy, formerly of Encinitas, Calif.
The government accused the two men of using confidential FBI information to depress the shares of companies that Elgindy and members of his online investment group sold “short,” in a bet that they would decline.
The information included undisclosed federal probes of companies.
Short sellers borrow stock and sell it, hoping to repay the loaned shares with stock bought at a lower price.
“Elgindy was the master manipulator,” said U.S. District Judge Raymond Dearie in Brooklyn. But “without this chap and the information he sold, we would have no conspiracy.”
Royer, 39, was ordered to surrender Nov. 6.
Elgindy was sentenced in June to 11 years in prison.
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