American Greed

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Amr “Anthony” Elgindy

Short-seller Anthony Elgindymade a name for himself by claiming to expose over-hyped companies on his website AnthonyPacific.com — where subscribers paid $600 a month for his tips. But he became notorious when he was arrested for cashing on in confidential FBI information about corporate investigations.

The information was leaked by FBI agent Jeffrey Royer. Elgindy would short the company’s stock and then post some of the information on his website — making money on both subscription fees and the stock’s decline. But he didn’t stop there. Prosecutors say he also extorted several small companies by threatening to break bad news if he wasn’t given stock.

Elgindy and Royer were arrested in 2002. In 2005, Elgindy was convicted of insider trading, racketeering and extortion. He’s now serving out his 11-year sentence at the Terminal Island Federal Correctional Institute in California. Royer was convicted of securities fraud, racketeering, conspiracy and obstruction of justice. He served six years in prison.

Photo: CNBC's "American Greed"