Authorities investigating two FBI agents accused of helping an alleged stock schemer say the duo kept a mysterious classified file in the house they shared, it was revealed yesterday.
U.S. Attorney Kenneth Breen said that file – which neither agent was authorized to possess – would be so damaging to the case of ex-agent Jeffrey Royer, he would be sure to flee if let out on bail.
Breen refused to say what the classified file contained.
Special Agent Lynn Wingate and Royer, who allegedly lived together in her home in Albuquerque, N.M., were part of a ring led by financial commentator and investor Amr Ibrahim “Tony” Elgindy, prosecutors charged at their arraignment in Brooklyn federal court.
They’re accused of using their positions in the FBI to provide Elgindy with information that he used in an elaborate “short selling” scheme – involving posting certain material on the Internet to drive down the prices of vulnerable companies.
Authorities, who said they found FBI files on the businesses in Elgindy’s San Diego office, charge he extorted the companies – demanding stock in exchange for removing the damaging Internet postings. When that happened, the price would rise.
Wingate – a leggy 34-year-old blonde who wore black to court – listened quietly as prosecutors talked about finding the file.
No information on the file was revealed.
But last Friday, Breen told a judge in San Diego, where Elgindy was arrested, that authorities are looking into whether the Egyptian national had prior warning of 9/11.
Elgindy is not charged with knowing about the attacks, but Breen pointed out that he had his kids’ $300,000 trust fund liquidated a day before the terror attacks drove the market sharply lower.
Wingate posted $100,000 bail and will return to Albuquerque.
Royer is under house arrest and Judge Raymond Dearie will make a decision on bail for him.
Royer quit his job with the FBI to work for Elgindy, who before Sept. 11 was a well-known stock analyst who regularly appeared on television. Wingate is on administrative leave.
Breen said that after his arrest, Royer admitted “much that was in his indictment.”
That included looking up information in FBI databases and giving it to Elgindy, who then used it in his short-selling schemes to determine which companies were likely to agree to extortion demands, Breen said.
Royer’s lawyer, Lawrence Gerzog, insisted his client is innocent, saying, “We will vigorously contest these charges.”