StopScum

Elgindy operated Insidetruth.com and AnthonyPacific.com where victims of this scam paid anywhere from $600 per month for a subscription to the site or $100 per month for his newsletter. At the same time that he was fleecing investors out of their hard earned money he was also trading in the very securities he was talking about. Elgindy was also a prolific poster on numerous Stock and Investment Forums and Chat Rooms where he used the name "Anthony@Pacific".

Just say NO

We don't listen to or pay money for any stock experts advice on the Internet. We also view most of the experts who appear on television as suspects which should also be ignored. Why? The Internet is the worst medium for reliable securities advice. Their is no accountability, it's very easy to use assumed names, none of the Forums and or Chat rooms we examined properly investigate posters to determine their track record and expertise. Anyone can say anything they want on their Web site and use fraudulent data to hide. This case clearly illustrates many of these points.

Did any of these investors bother to perform some due diligence on this slime bag? If they would have Googled Elgindy they would have found the following article from 5/16/00 which documents the fact that: " Short-seller and flamboyant Internet message board poster Anthony Elgindy was sentenced Monday by a Texas judge to a $20,000 fine and four months in a federal prison for felony mail fraud." Not a lot to debate since Elgindy pleaded guilty.

Everyone needs some advice

We agree and that's why we read the Wall Street Journal and retain a full service stock broker and a financial adviser. Before you entrust your hard earned money to anyone, you must perform your own due diligence on a prospective stock broker or financial adviser. Spend the time to meet them face to face and use the following questions as a guideline:

What experience do you have, especially with people in my circumstances?

How long have you been in business?

Where did you go to school?

What is your employment history?

What licenses do you hold?

What professional organization do you belong to?

What accreditation do you have?

Are you registered with the SEC, a state, or NASD?

Are the firm, the clearing firm, and any other related companies that will do business with me members of SIPC?

What products and services do you offer?

Can you only recommend a limited number of products or services to me? If so, why?

How are you paid for your services? What is your usual hourly rate, flat fee, or commission?

Have you ever been disciplined by any government regulator for unethical or improper conduct or been sued by a client who was not happy with the work you did?

For registered investment advisers, will you send me a copy of both parts of your Form ADV?

Source: some questions from the SEC.

You want detailed answers with very specific data and not vague statements such as those presented on the AnthonyPacific.com site. If the prospective stock broker and or adviser fails to provide details, do not retain them and leave. Next, Google (Use the SE, News, and Groups) all the data provided. Look for verification of the answers to your questions along with problems. Run a search on the individual as well as the business, and any other relavent data using the Search Systems site. Recommendations from trusted friends have some value but you should still perform your own due diligence.