How to options trading 911

SUPPRESSED DETAILS OF CRIMINAL INSIDER TRADING. LEAD DIRECTLY INTO THE CIA'S HIGHEST RANKS. CIA EXECUTIVE DIRECTOR "BUZZY" KRONGARD. MANAGED FIRM THAT HANDLED "PUT" OPTIONS ON UAL. by Michael C. Ruppert. FTW, October 9, 2001 - Although uniformly ignored by the mainstream U. S. media, there is abundant and clear evidence that a number of transactions in financial markets indicated specific (criminal) foreknowledge of the September 11 attacks on the World Trade Center and the Pentagon. In the case of at least one of these trades -- which has left a $2.5 million prize unclaimed -- the firm used to place the "put options" on United Airlines stock was, until 1998, managed by the man who is now in the number three Executive Director position at the Central Intelligence Agency. Until 1997 A. B. "Buzzy" Krongard had been Chairman of the investment bank A. B. Brown. A. B. Brown was acquired by Banker's Trust in 1997. Krongard then became, as part of the merger, Vice Chairman of Banker's Trust-AB Brown, one of 20 major U. S. banks named by Senator Carl Levin this year as being connected to money laundering. Krongard's last position at Banker's Trust (BT) was to oversee "private client relations". In this capacity he had direct hands-on relations with some of the wealthiest people in the world in a kind of specialized banking operation that has been identified by the U. S. Senate and other investigators as being closely connected to the laundering of drug money. Krongard (re?) joined the CIA in 1998 as counsel to CIA Director George Tenet. He was promoted to CIA Executive Director by President Bush in March of this year.

BT was acquired by Deutsche Bank in 1999. The combined firm is the single largest bank in Europe. And, as we shall see, Deutsche Bank played several key roles in events connected to the September 11 attacks. THE SCOPE OF KNOWN INSIDER TRADING. Before looking further into these relationships it is necessary to look at the insider trading information that is being ignored by Reuters, The New York Times and other mass media. It is well documented that the CIA has long monitored such trades - in real time - as potential warnings of terrorist attacks and other economic moves contrary to U. S. interests. Previous stories in FTW have specifically highlighted the use of Promis software to monitor such trades. It is necessary to understand only two key financial terms to understand the significance of these trades, "selling short" and "put options". "Selling Short" is the borrowing of stock, selling it at current market prices, but not being required to actually produce the stock for some time. If the stock falls precipitously after the short contract is entered, the seller can then fulfill the contract by buying the stock after the price has fallen and complete the contract at the pre-crash price. These contracts often have a window of as long as four months. "Put Options" are contracts giving the buyer the option to sell stocks at a later date.

Purchased at nominal prices of, for example, $1.00 per share, they are sold in blocks of 100 shares. If exercised, they give the holder the option of selling selected stocks at a future date at a price set when the contract is issued. Thus, for an investment of $10,000 it might be possible to tie up 10,000 shares of United or American Airlines at $100 per share, and the seller of the option is then obligated to buy them if the option is executed. If the stock has fallen to $50 when the contract matures, the holder of the option can purchase the shares for $50 and immediately sell them for $100 - regardless of where the market then stands. A call option is the reverse of a put option, which is, in effect, a derivatives bet that the stock price will go up. A September 21 story by the Israeli Herzliyya International Policy Institute for Counter terrorism, entitled "Black Tuesday: The World's Largest Insider Trading Scam?" documented the following trades connected to the September 11 attacks: - Between September 6 and 7, the Chicago Board Options Exchange saw purchases of 4,744 put options on United Airlines, but only 396 call options. Assuming that 4,000 of the options were bought by people with advance knowledge of the imminent attacks, these "insiders" would have profited by almost $5 million . - On September 10, 4,516 put options on American Airlines were bought on the Chicago exchange, compared to only 748 calls. Again, there was no news at that point to justify this imbalance Again, assuming that 4,000 of these options trades represent "insiders", they would represent a gain of about $4 million . - The levels of put options purchased above were more than six times higher than normal. - No similar trading in other airlines occurred on the Chicago exchange in the days immediately preceding Black Tuesday. - Morgan Stanley Dean Witter & Co., which occupied 22 floors of the World Trade Center, saw 2,157 of its October $45 put options bought in the three trading days before Black Tuesday this compares to an average of 27 contracts per day before September 6 . Morgan Stanley's share price fell from $48.90 to $42.50 in the aftermath of the attacks. Assuming that 2,000 of these options contracts were bought based upon knowledge of the approaching attacks, their purchasers could have profited by at least $1.2 million .

- Merrill Lynch & Co., which occupied 22 floors of the World Trade Center, saw 12,215 October $45 put options bought in the four trading days before the attacks the previous average volume in those shares had been 252 contracts per day a 1200% increase! . When trading resumed, Merrill's shares fell from $46.88 to $41.50 assuming that 11,000 option contracts were bought by "insiders", their profit would have been about $5.5 million . - European regulators are examining trades in Germany's Munich Re, Switzerland's Swiss Re, and AXA of France, all major reinsurers with exposure to the Black Tuesday disaster. FTW Note: AXA also owns more than 25% of American Airlines stock making the attacks a "double whammy" for them. On September 29, 2001 - in a vital story that has gone unnoticed by the major media - the San Francisco Chronicle reported, " Investors have yet to collect more than $2.5 million in profits they made trading options in the stock of United Airlines before the Sept. 11, terrorist attacks, according to a source familiar with the trades and market data ". " The uncollected money raises suspicions that the investors - whose identities and nationalities have not been made public - had advance knowledge of the strikes ". They don't dare show up now. The suspension of trading for four days after the attacks made it impossible to cash-out quickly and claim the prize before investigators started looking. "October series options for UAL Corp. were purchased in highly unusual volumes three trading days before the terrorist attacks for a total outlay of $2,070 investors bought the option contracts, each representing 100 shares, for 90 cents each. This represents 230,000 shares.

Those options are now selling at more than $12 each. There are still 2,313 so-called "put" options outstanding valued at $2.77 million and representing 231,300 shares according to the Options Clearinghouse Corp". "The source familiar with the United trades identified Deutsche Bank Alex. Brown, the American investment banking arm of German giant Deutsche Bank, as the investment bank used to purchase at least some of these options" This was the operation managed by Krongard until as recently as 1998. As reported in other news stories, Deutsche Bank was also the hub of insider trading activity connected to Munich Re. just before the attacks. CIA, THE BANKS AND THE BROKERS. Understanding the interrelationships between CIA and the banking and brokerage world is critical to grasping the already frightening implications of the above revelations. Let's look at the history of CIA, Wall Street and the big banks by looking at some of the key players in CIA's history. Clark Clifford - The National Security Act of 1947 was written by Clark Clifford, a Democratic Party powerhouse, former Secretary of Defense, and one-time advisor to President Harry Truman. In the 1980s, as Chairman of First American Bancshares, Clifford was instrumental in getting the corrupt CIA drug bank BCCI a license to operate on American shores. His profession: Wall Street lawyer and banker. John Foster and Allen Dulles - These two brothers "designed" the CIA for Clifford.

Both were active in intelligence operations during WW II. Allen Dulles was the U. S. Ambassador to Switzerland where he met frequently with Nazi leaders and looked after U. S. investments in Germany. John Foster went on to become Secretary of State under Dwight Eisenhower and Allen went on to serve as CIA Director under Eisenhower and was later fired by JFK. Their professions: partners in the most powerful - to this day - Wall Street law firm of Sullivan, Cromwell. Bill Casey - Ronald Reagan's CIA Director and OSS veteran who served as chief wrangler during the Iran-Contra years was, under President Richard Nixon, Chairman of the Securities and Exchange Commission. His profession: Wall Street lawyer and stockbroker. David Doherty - The current Vice President of the New York Stock Exchange for enforcement is the retired General Counsel of the Central Intelligence Agency. George Herbert Walker Bush - President from 1989 to January 1993, also served as CIA Director for 13 months from 1976-7. He is now a paid consultant to the Carlyle Group, the 11th largest defense contractor in the nation, which also shares joint investments with the bin Laden family. A. B. "Buzzy" Krongard - The current Executive Director of the Central Intelligence Agency is the former Chairman of the investment bank A. B. Brown and former Vice Chairman of Banker's Trust. John Deutch - This retired CIA Director from the Clinton Administration currently sits on the board at Citigroup, the nation's second largest bank, which has been repeatedly and overtly involved in the documented laundering of drug money. This includes Citigroup's 2001 purchase of a Mexican bank known to launder drug money, Banamex. Nora Slatkin - This retired CIA Executive Director also sits on Citibank's board. Maurice "Hank" Greenburg - The CEO of AIG insurance, manager of the third largest capital investment pool in the world, was floated as a possible CIA Director in 1995.

FTW exposed Greenberg's and AIG's long connection to CIA drug trafficking and covert operations in a two-part series that was interrupted just prior to the attacks of September 11. AIG's stock has bounced back remarkably well since the attacks. To read that story, please go to fromthewilderness. comfreeciadrugspart_2.html. One wonders how much damning evidence is necessary to respond to what is now irrefutable proof that CIA knew about the attacks and did not stop them. Whatever our government is doing, whatever the CIA is doing, it is clearly NOT in the interests of the American people, especially those who died on September 11. How to options trading 911 There was very high trading in "put options" on American Airline and United Airlines, immediately before 911. These were effectively gambles that their share prices would fall, which of course is what happened once the attacks took place. This shows the traders must have had advance knowledge of 911. This is a complex story, but the claims don’t always match the reality. "A single U. S.-based institutional investor with no conceivable ties to al Qaeda purchased 95 percent of the UAL puts on September 6 as part of a trading method that also included buying 115,000 shares of American on September 10. Perhaps the strongest challenge to this conclusion comes from Professor Allen M Poteshman from the University of Illinois at Urbana-Champaign. He decided to investigate this further, analysing market data statistically to try and assess the trades’ significance. Professor Poteshman points out several reasons to question the foreknowledge argument: Despite the views expressed by the popular media, leading academics, and option market professionals, there is reason to question the decisiveness of the evidence that terrorists traded in the option market ahead of the September 11 attacks.

One event that casts doubt on the evidence is the crash of an American Airlines plane in New York City on November 12. According to the OCC Web site, three trading days before, on November 7, the put-call ratio for options on AMR stock was 7.74. On the basis of the statements made about the links between option market activity and terrorism shortly after September 11, it would have been tempting to infer from this put-call ratio that terrorism probably was the cause of the November 12 crash. Subsequently, however, terrorism was all but ruled out. While it might be the case that an abnormally large AMR put-call ratio was observed by chance on November 7, this event certainly raises the question of whether put-call ratios as large as 7.74 are, in fact, unusual. Beyond the November 12 plane crash, an article published in Barron’s on October 8 (Arvedlund 2001) offers several additional grounds for being skeptical about the claims that it is likely that terrorists or their associates traded AMR and UAL options ahead of the September 11 attacks. For starters, the article notes that the heaviest trading in the AMR options did not occur in the cheapest, shortest-dated puts, which would have provided the largest profits to someone who knew of the coming attacks. Furthermore, an analyst had issued a “sell” recommendation on AMR during the previous week, which may have led investors to buy AMR puts. Similarly, the stock price of UAL had recently declined enough to concern technical traders who may have increased their put buying, and UAL options are heavily traded by institutions hedging their stock positions. Finally, traders making markets in the options did not raise the ask price at the time the orders arrived as they would have if they believed that the orders were based on adverse nonpublic information: the market makers did not appear to find the trading to be out of the ordinary at the time that it occurred. However, he then devises a statistical model, which he suggests is consistent with foreknowledge after all: Options traders, corporate managers, security analysts, exchange officials, regulators, prosecutors, policy makers, and—at times—the public at large have an interest in knowing whether unusual option trading has occurred around certain events. A prime example of such an event is the September 11 terrorist attacks, and there was indeed a great deal of speculation about whether option market activity indicated that the terrorists or their associates had traded in the days leading up to September 11 on advance knowledge of the impending attacks. This speculation, however, took place in the absence of an understanding of the relevant characteristics of option market trading. One issue that troubles us about this is the lack of analysis of the string of bad news delivered by American Airlines on September 7th, the trading day before September 10th, when the most significant trading occurred. Professor Poteshman told us via email: My study does include quantile regressions that account for the market conditions on particular stocks.

Hence, there is at least a first order correction for the negative news that was coming out on Sept. 7 on AMR. But can you really treat the news so simply? Professor Paul Zarembka supports the claims, saying: Poteshman finds . these purchases of options on American Airline stock . had only 1 percent probability of occurring simply randomly. But we’re not saying they were random, rather that they may have been a rational response to significant bad news delivered the day before. Poteshman is essentially saying (with regard to AMR) is that people bought too many puts for that to be explained by the 97 news, therefore another explanation is required, but how can you say that without analysing the news itself? After all, if that news had been “we’ll probably be bankrupt in six months” then the put ratios would probably have been even more significant, and Poteshman’s model given even more confirmation of “unusual option market activity”, but would that have made the idea of foreknowledge more likely? We don’t think so. Obviously the AMR news was less significant, but we would still say that you cannot accurately judge the significance of these trades until you take it into consideration. A single U. S.-based institutional investor with no conceivable ties to al Qaeda purchased 95 percent of the UAL puts on September 6 as part of a trading method that also included buying 115,000 shares of American on September 10. Similarly, much of the seemingly suspicious trading in American on September 10 was traced to a specific U. S.-based options trading newsletter, faxed to its subscribers on Sunday, September 9, which recommended these trades. The September 6th UAL puts would automatically appear significant, then, even though only one investor was reportedly behind them.

But does that really mean you can mathematically indicate it’s likely that investor had foreknowledge of 911, without considering the other market conditions and information available at the time? How to options trading 911 Options The Days Prior To 911? Can You Amplify On This Comment, Please? By Walter J. Burien, Jr. 12-30-3 Gentlemen: Can we all unite on a single task: finding out who placed the orders for the "put" options in the days immediately before 911? Discussions I've had in the enclosed e-mail seem to indicate this information is available and not protected by financial disclosure restrictions. Please examine the enclosed and brainstorm how we can get this information into the public sphere. It could be the thread to unravel the mystery. Discovering the names of those who apparently had prior knowledge of 911 as indicated by their "savvy" bets on the fortunes of United and American airlines are a necessary first step toward interrogating these individuals to find out where they got their information, something the law enforcement community should be doing but obviously isn't. Best wishes, John Kaminski REPLY FROM. How to options trading 911 Submitted by Andrew Giovinazzi on Tue, 12192017 - 4:47pm. For the most part today was a sleeper. Most everything sold off after tremendous runs to all – time highs in SPX and NDX yesterday.

You know things are nuts when TWTR, yes I bought more juice in there last week, is the market leader for a day. Much of the action in VIX this year, when there was any, has been around politics. DJT seems to keep the volatility around himself and somehow it does not translate to equities except on Russia news snippets. The month of December has been ruled by Congress and I predict that is how the month will end. Morning Vol Report 12.19.2017 VIX catches a bid. Submitted by Andrew Giovinazzi on Tue, 12192017 - 9:38am. Submitted by Andrew Giovinazzi on Mon, 12182017 - 6:10pm. At this point there seems to be a lot of ink devoted to Bitcoin. The 1000% gain this year, the catastrophic drop it might have and last but not least the Bitcoin futures traded on the CBOE and CME. The last point is really what I want to discuss because we most likely would not have had a financial crisis in 2008 if the OTC derivative market in Sub Prime mortgages was exchange cleared.

Somewhere along the line margin requirement would have gone way, way up which would have started to cool things. Morning Vol Report 12.18.2017 Mkt thinks Tax Reform is done. Submitted by Andrew Giovinazzi on Mon, 12182017 - 9:19am. Option Pit Idea of the Week: DIS. Submitted by Mark Sebastian on Fri, 12152017 - 11:08am. Morning Vol Report 12.15.2017 Off to the Races. Submitted by Andrew Giovinazzi on Fri, 12152017 - 9:44am. Option Pit Vol Report 12-14-17. Submitted by Mark Sebastian on Thu, 12142017 - 10:14am. Morning Vol Report 12.13.2017 All eyes on the Fed. Submitted by Andrew Giovinazzi on Wed, 12132017 - 9:25am. Submitted by Andrew Giovinazzi on Tue, 12122017 - 3:55pm. Morning Vol Report 12.12.2017 DIS and FOXA dance, VIX future premo is fat. Submitted by Andrew Giovinazzi on Tue, 12122017 - 9:18am.

How to options trading 911 Suppressed Details of Criminal Insider Trading Lead Directly into the CIA’s Highest Ranks. FTW - October 9, 2001 – Although uniformly ignored by the mainstream U. S. media, there is abundant and clear evidence that a number of transactions in financial markets indicated specific (criminal) foreknowledge of the September 11 attacks on the World Trade Center and the Pentagon. In the case of at least one of these trades -- which has left a $2.5 million prize unclaimed -- the firm used to place the “put options” on United Airlines stock was, until 1998, managed by the man who is now in the number three Executive Director position at the Central Intelligence Agency. Until 1997 A. B. “Buzzy” Krongard had been Chairman of the investment bank A. B. Brown. A. B. Brown was acquired by Banker’s Trust in 1997. Krongard then became, as part of the merger, Vice Chairman of Banker’s Trust-AB Brown, one of 20 major U. S. banks named by Senator Carl Levin this year as being connected to money laundering. Krongard’s last position at Banker’s Trust (BT) was to oversee “private client relations.” In this capacity he had direct hands-on relations with some of the wealthiest people in the world in a kind of specialized banking operation that has been identified by the U. S. Senate and other investigators as being closely connected to the laundering of drug money. THE SCOPE OF KNOWN INSIDER TRADING. Before looking further into these relationships it is necessary to look at the insider trading information that is being ignored by Reuters, The New York Times and other mass media. It is well documented that the CIA has long monitored such trades – in real time – as potential warnings of terrorist attacks and other economic moves contrary to U. S. interests. Previous stories in FTW have specifically highlighted the use of Promis software to monitor such trades. It is necessary to understand only two key financial terms to understand the significance of these trades, “selling short” and “put options”. “Selling Short” is the borrowing of stock, selling it at current market prices, but not being required to actually produce the stock for some time.

If the stock falls precipitously after the short contract is entered, the seller can then fulfill the contract by buying the stock after the price has fallen and complete the contract at the pre-crash price. These contracts often have a window of as long as four months. “Put Options,” are contracts giving the buyer the option to sell stocks at a later date. Purchased at nominal prices of, for example, $1.00 per share, they are sold in blocks of 100 shares. If exercised, they give the holder the option of selling selected stocks at a future date at a price set when the contract is issued. Thus, for an investment of $10,000 it might be possible to tie up 10,000 shares of United or American Airlines at $100 per share, and the seller of the option is then obligated to buy them if the option is executed. If the stock has fallen to $50 when the contract matures, the holder of the option can purchase the shares for $50 and immediately sell them for $100 – regardless of where the market then stands. A call option is the reverse of a put option, which is, in effect, a derivatives bet that the stock price will go up. A September 21 story by the Israeli Herzliyya International Policy Institute for Counterterrorism, entitled “Black Tuesday: The World’s Largest Insider Trading Scam?” documented the following trades connected to the September 11 attacks: - Between September 6 and 7, the Chicago Board Options Exchange saw purchases of 4,744 put options on United Airlines, but only 396 call options… Assuming that 4,000 of the options were bought by people with advance knowledge of the imminent attacks, these “insiders” would have profited by almost $5 million. - On September 10, 4,516 put options on American Airlines were bought on the Chicago exchange, compared to only 748 calls. Again, there was no news at that point to justify this imbalance… Again, assuming that 4,000 of these options trades represent “insiders,” they would represent a gain of about $4 million. - The levels of put options purchased above were more than six times higher than normal. - No similar trading in other airlines occurred on the Chicago exchange in the days immediately preceding Black Tuesday. - Morgan Stanley Dean Witter & Co., which occupied 22 floors of the World Trade Center, saw 2,157 of its October $45 put options bought in the three trading days before Black Tuesday this compares to an average of 27 contracts per day before September 6. Morgan Stanley’s share price fell from $48.90 to $42.50 in the aftermath of the attacks.

Assuming that 2,000 of these options contracts were bought based upon knowledge of the approaching attacks, their purchasers could have profited by at least $1.2 million. Merrill Lynch & Co., with headquarters near the Twin Towers, saw 12,215 October $45 put options bought in the four trading days before the attacks the previous average volume in those shares had been 252 contracts per day a 1200% increase!. When trading resumed, Merrill’s shares fell from $46.88 to $41.50 assuming that 11,000 option contracts were bought by “insiders,” their profit would have been about $5.5 million. - European regulators are examining trades in Germany’s Munich Re, Switzerland’s Swiss Re, and AXA of France, all major reinsurers with exposure to the Black Tuesday disaster. FTW Note: AXA also owns more than 25% of American Airlines stock making the attacks a “double whammy” for them. On September 29, 2001 – in a vital story that has gone unnoticed by the major media – the San Francisco Chronicle reported, “Investors have yet to collect more than $2.5 million in profits they made trading options in the stock of United Airlines before the Sept. 11, terrorist attacks, according to a source familiar with the trades and market data. “The uncollected money raises suspicions that the investors – whose identities and nationalities have not been made public – had advance knowledge of the strikes.” They don’t dare show up now. The suspension of trading for four days after the attacks made it impossible to cash-out quickly and claim the prize before investigators started looking. “… October series options for UAL Corp. were purchased in highly unusual volumes three trading days before the terrorist attacks for a total outlay of $2,070 investors bought the option contracts, each representing 100 shares, for 90 cents each.

This represents 230,000 shares. Those options are now selling at more than $12 each. There are still 2,313 so-called “put” options outstanding valued at $2.77 million and representing 231,300 shares according to the Options Clearinghouse Corp.” “…The source familiar with the United trades identified Deutsche Bank Alex. Brown, the American investment banking arm of German giant Deutsche Bank, as the investment bank used to purchase at least some of these options…” This was the operation managed by Krongard until as recently as 1998. As reported in other news stories, Deutsche Bank was also the hub of insider trading activity connected to Munich Re. just before the attacks. CIA, THE BANKS AND THE BROKERS. Understanding the interrelationships between CIA and the banking and brokerage world is critical to grasping the already frightening implications of the above revelations. Let’s look at the history of CIA, Wall Street and the big banks by looking at some of the key players in CIA’s history. Clark Clifford – The National Security Act of 1947 was written by Clark Clifford, a Democratic Party powerhouse, former Secretary of Defense, and one-time advisor to President Harry Truman.

In the 1980s, as Chairman of First American Bancshares, Clifford was instrumental in getting the corrupt CIA drug bank BCCI a license to operate on American shores. His profession: Wall Street lawyer and banker. John Foster and Allen Dulles – These two brothers “designed” the CIA for Clifford. Both were active in intelligence operations during WW II. Allen Dulles was the U. S. Ambassador to Switzerland where he met frequently with Nazi leaders and looked after U. S. investments in Germany. John Foster went on to become Secretary of State under Dwight Eisenhower and Allen went on to serve as CIA Director under Eisenhower and was later fired by JFK. Their professions: partners in the most powerful - to this day - Wall Street law firm of Sullivan, Cromwell. Bill Casey – Ronald Reagan’s CIA Director and OSS veteran who served as chief wrangler during the Iran-Contra years was, under President Richard Nixon, Chairman of the Securities and Exchange Commission. His profession: Wall Street lawyer and stockbroker. David Doherty - The current Vice President of the New York Stock Exchange for enforcement is the retired General Counsel of the Central Intelligence Agency. George Herbert Walker Bush – President from 1989 to January 1993, also served as CIA Director for 13 months from 1976-7. He is now a paid consultant to the Carlyle Group, the 11 th largest defense contractor in the nation, which also shares joint investments with the bin Laden family. A. B. “Buzzy” Krongard – The current Executive Director of the Central Intelligence Agency is the former Chairman of the investment bank A. B. Brown and former Vice Chairman of Banker’s Trust.

John Deutch - This retired CIA Director from the Clinton Administration currently sits on the board at Citigroup, the nation’s second largest bank, which has been repeatedly and overtly involved in the documented laundering of drug money. This includes Citigroup’s 2001 purchase of a Mexican bank known to launder drug money, Banamex. Nora Slatkin – This retired CIA Executive Director also sits on Citibank’s board. Maurice “Hank” Greenburg – The CEO of AIG insurance, manager of the third largest capital investment pool in the world, was floated as a possible CIA Director in 1995. FTW exposed Greenberg’s and AIG’s long connection to CIA drug trafficking and covert operations in a two-part series that was interrupted just prior to the attacks of September 11. AIG’s stock has bounced back remarkably well since the attacks. To read that story, please go to copvcia. comstoriespart_2.html . One wonders how much damning evidence is necessary to respond to what is now irrefutable proof that CIA knew about the attacks and did not stop them. Whatever our government is doing, whatever the CIA is doing, it is clearly NOT in the interests of the American people, especially those who died on September 11. © COPYRIGHT, 2001, Michael C. Ruppert and FTW Publications, copvcia. com . All Rights Reserved. – May be reprinted or distributed for non-profit purposes only. Commander in Chief.

Back Off Bin Ladens. The Bushes and the Carlyle Group. How Bush and other ex-politic os profit from connections and access. What doesn't he want Americans to know? The sanctions have loopholes our vice president made millions from. Insider Trading. Pre-911 Put Options on Companies Hurt by Attack Indicates Foreknowledge. Financial transactions in the days before the attack suggest that certain individuals used foreknowledge of the attack to reap huge profits. 1 The evidence of insider trading includes: Huge surges in purchases of put options on stocks of the two airlines used in the attack -- United Airlines and American Airlines Surges in purchases of put options on stocks of reinsurance companies expected to pay out billions to cover losses from the attack -- Munich Re and the AXA Group Surges in purchases of put options on stocks of financial services companies hurt by the attack -- Merrill Lynch & Co., and Morgan Stanley and Bank of America Huge surge in purchases of call options of stock of a weapons manufacturer expected to gain from the attack -- Raytheon Huge surges in purchases of 5-Year US Treasury Notes. In each case, the anomalous purchases translated into large profits as soon as the stock market opened a week after the attack: put options were used on stocks that would be hurt by the attack, and call options were used on stocks that would benefit. Put and call options are contracts that allow their holders to sell and buy assets, respectively, at specified prices by a certain date.

Put options allow their holders to profit from declines in stock values because they allow stocks to be bought at market price and sold for the higher option price. The ratio of the volume of put option contracts to call option contracts is called the putcall ratio. The ratio is usually less than one, with a value of around 0.8 considered normal. 2. American Airlines and United Airlines, and several insurance companies and banks posted huge loses in stock values when the markets opened on September 17. Put options -- financial instruments which allow investors to profit from the decline in value of stocks -- were purchased on the stocks of these companies in great volume in the week before the attack. United Airlines and American Airlines. Two of the corporations most damaged by the attack were American Airlines (AMR), the operator of Flight 11 and Flight 77, and United Airlines (UAL), the operator of Flight 175 and Flight 93. According to CBS News , in the week before the attack, the putcall ratio for American Airlines was four. 3 The putcall ratio for United Airlines was 25 times above normal on September 6. 4. The spikes in put options occurred on days that were uneventful for the airlines and their stock prices. The Bloomberg News reported that put options on the airlines surged to the phenomenal high of 285 times their average. When the market reopened after the attack, United Airlines stock fell 42 percent from $30.82 to $17.50 per share, and American Airlines stock fell 39 percent, from $29.70 to $18.00 per share. 7. Reinsurance Companies. Several companies in the reinsurance business were expected to suffer huge losses from the attack: Munich Re of Germany and Swiss Re of Switzerland -- the world's two biggest reinsurers, and the AXA Group of France. In September, 2001, the San Francisco Chronicle estimated liabilities of $1.5 billion for Munich Re and $0.55 bilion for the AXA Group and telegraph. co. uk estimated liabilities of Ј1.2 billion for Munich Re and Ј0.83 billion for Swiss Re. 8 9. Trading in shares of Munich Re was almost double its normal level on September 6, and 7, and trading in shares of Swiss Re was more than double its normal level on September 7. 10. Financial Services Companies.

Merrill Lynch and Morgan Stanley Morgan Stanley Dean Witter & Co. and Merrill Lynch & Co. were both headquartered in lower Manhattan at the time of the attack. Morgan Stanley occupied 22 floors of the North Tower and Merrill Lynch had headquarters near the Twin Towers. Morgan Stanley, which saw an average of 27 put options on its stock bought per day before September 6, saw 2,157 put options bought in the three trading days before the attack. Merrill Lynch, which saw an average of 252 put options on its stock bought per day before September 5, saw 12,215 put options bought in the four trading days before the attack. Morgan Stanley's stock dropped 13% and Merrill Lynch's stock dropped 11.5% when the market reopened. 11. Bank of America showed a fivefold increase in put option trading on the Thursday and Friday before the attack. While most companies would see their stock valuations decline in the wake of the attack, those in the business of supplying the military would see dramatic increases, reflecting the new business they were poised to receive. Raytheon, maker of Patriot and Tomahawk missiles, saw its stock soar immediately after the attack. Purchases of call options on Raytheon stock increased sixfold on the day before the attack. Raytheon has been fined millions of dollars inflating the costs of equipment it sells the US military. Raytheon has a secretive subsidiary, E-Systems, whose clients have included the CIA and NSA.

14. Five-year US Treasury notes were purchased in abnormally high volumes before the attack, and their buyers were rewarded with sharp increases in their value following the attack. The SEC's Investigation. Shortly after the attack the SEC circulated a list of stocks to securities firms around the world seeking information. 16 A widely circulated article states that the stocks flagged by the SEC included those of the following corporations: American Airlines, United Airlines, Continental Airlines, Northwest Airlines, Southwest Airlines, US Airways airlines, Martin, Boeing, Lockheed Martin Corp., AIG, American Express Corp, American International Group, AMR Corporation, AXA SA, Bank of America Corp, Bank of New York Corp, Bank One Corp, Cigna Group, CNA Financial, Carnival Corp, Chubb Group, John Hancock Financial Services, Hercules Inc., L-3 Communications Holdings, Inc., LTV Corporation, Marsh & McLennan Cos. Inc., MetLife, Progressive Corp., General Motors, Raytheon, W. R. Grace, Royal Caribbean Cruises, Ltd., Lone Star Technologies, American Express, the Citigroup Inc., Royal & Sun Alliance, Lehman Brothers Holdings, Inc.

, Vornado Reality Trust, Morgan Stanley, Dean Witter & Co., XL Capital Ltd., and Bear Stearns. An October 19 article in the San Francisco Chronicle reported that the SEC, after a period of silence, had undertaken the unprecedented action of deputizing hundreds of private officials in its investigation: In a two-page statement issued to "all securities-related entities" nationwide, the SEC asked companies to designate senior personnel who appreciate "the sensitive nature" of the case and can be relied upon to "exercise appropriate discretion" as "point" people linking government investigators and the industry. 17. Michael Ruppert, a former LAPD officer, explains the consequences of this action: Interpreting and Reinterpreting the Data. An analysis of the press reports on the subject of apparent insider trading related to the attack shows a trend, with early reports highlighting the anomalies, and later reports excusing them. In his book Crossing the Rubicon Michael C. Ruppert illustrates this point by first excerpting a number of reports published shortly after the attack: A jump in UAL (United Airlines) put options 90 times (not 90 percent) above normal between September 6 and September 10, and 285 times higher than average on the Thursday before the attack. -- CBS News, September 26 A jump in American Airlines put options 60 times (not 60 percent) above normal on the day before the attacks. -- CBS News, September 26 No similar trading occurred on any other airlines. -- Bloomberg Business Report, the Institute for Counterterrorism (ICT), Herzliyya, Israel citing data from the CBOE 3 Morgan Stanley saw, between September 7 and September 10, an increase of 27 times (not 27 percent) in the purchase of put options on its shares. 4. 3. "Mechanics of Possible Bin Laden Insider Trading Scam," Herzlyya International Policy Institute for Counter Terrorism (ICT), September 22, 2001. Michael C. Ruppert, "The Case for Bush Administration Advance Knowledge of 9-11 Attacks," From the Wilderness April 22, 2002. Posted at Centre for Research and Globalization < globalresearch.

caarticlesRUP203A. html>. 4. ICT, op. cit, citing data from the Chicago Board of Options Exchange (CBOE). . "Terrorists trained at CBPE." Chicago Sun-Times , September 20, 2001, < suntimes. comterrorstoriescst-nws-trade20.html>. "Probe of options trading link to attacks confirmed," . Chicago Sun-Times , September 21, 2001, < suntimes. comterrorstoriescst-fin-trade21.html>. Ruppert then illustrates an apparent attempt to bury the story by explaining it away as nothing unusual. A September 30 New York Times article claims that "benign explanations are turning up" in the SEC's investigation. 20 The article blames the activity in put options, which it doesn't quantify, on "market pessimism," but fails to explain why the price of the stocks in the airlines doesn't reflect the same market pessimism. The fact that $2.5 million of the put options remained unclaimed is not explained at all by market pessimism, and is evidence that the put option purchasers were part of a criminal conspiracy.

21. Put Options. betting against United and American Airlines before 911. One of the 911 scandals is the "put options" placed on United and American airlines stock values the week before 911 by someone trying to make a buck on the tragedy. This was BIG NEWS in the world financial press in the weeks after the attacks, with numerous articles in mainstream media speculating that Osama had just made the sickest stock trade in history. However, most of the articles didn't mention that the Stock Markets are monitored in real time (among other reasons, it could provide intelligence about these types of threats). It is unlikely that someone perpetrating a major crime such as 911 would provide evidence of their planning such as the stock trades on United and American airlines, since it would draw serious scrutiny and probably disrupt plans for the atrocity (assuming the atrocity wasn't tacitly given the green light in order to provide the pretext for the Homeland Security police state and the seizure of the Middle East oil fields). A few weeks later, From the Wilderness, published by Michael Ruppert, linked the put options on the affected airlines (and a few other companies, located in the towers) to A. B. Brown, a firm formerly headed by the Executive Director of the CIA (the number three position). The stories about the put options suddenly disappeared from the media, and now only the underground press, largely on the web, talks about them. To date, there has not been any public investigation by the government of who placed the stock trades (A B Brown was merely one of the firms used, the identities of the traders is not publicly known). When the 911 Commission report was released in 2004, it was available as a PDF download.

The first thing I searched for was mention of the pre-911 stock trades on United and American airlines. The Commission report explained it was not significant, since the traders did not have connections to al-Qaeda. The report did not discuss if the traders had connections to the CIA. independent German journalist tracking the details of 911 insider trading. AN ASIA TIMES ONLINE EXCLUSIVE INVESTIGATION. Insider trading 911 . the facts laid bare. There can be no dispute that speculative trade in put options - where a party bets that a stock will drop abruptly in value - spiked in the days around September 11, 2001 - even if the US Securities and Exchange Commission and the 911 Commission will not say so. More than a few people must have had advance warning of the terror attacks, and they cashed in to the tune of millions of dollars. Understanding Special Operations. Understanding The Secret Team. an interview with Fletcher Prouty. A stock broker called me from Washington a few days before the Bay of Pigs was planned to take place and said, "Colonel Prouty -- he just happened to know me, he didn't know my job, but he said -- Colonel, can you give me any explanation why, all of a sudden, people from the Pentagon are calling me buying sugar stock?" Sugar stock had dropped to pennies, because Castro had boycotted American sugar down there and the companies had lost a lot of money. But, all of a sudden, people who knew about the prospect of the invasion were buying sugar stock $10,000, $20,000 at a time, and sugar stock demand was going up well before the Bay of Pigs landing.

They were running it as a commercial venture. Follow the Money? God forbid. Why was the cashing out of billions of dollars just before the 911 attacks never investigated? They Made a Killing. Did people who knew about secret, CIA-led coups use that information to game the stock market? Posted Tuesday, Oct. 28, 2008. Mystery of terror `insider dealers' by Chris Blackhurst, The Independent, 14 October 2001. Share speculators have failed to collect $2.5m (£1.7m) in profits made from the fall in the share price of United Airlines after the 11 September World Trade Centre attacks. The fact that the money is unclaimed more than a month later has re-awakened investigators' interest in a story dismissed as coincidence. It may be that investors who were able to predict the share price crash so skilfully are reluctant to be seen profiting from tragedy.

But investigators now wonder whether there is a more sinister explanation. The authorities are examining the possibility that if they knew what was coming, traders were intent on taking their profits immediately, before regulators had woken up to any possible scam. But investors failed to foresee that the first response of the US stock markets to the disaster was to suspend all trading for four days, thereby denying them the chance of cashing in their profits. Further details of the futures trades that netted such huge gains in the wake of the hijackings have been disclosed. To the embarrassment of investigators, it has also emerged that the firm used to buy many of the "put" options -- where a trader, in effect, bets on a share price fall -- on United Airlines stock was headed until 1998 by "Buzzy" Krongard, now executive director of the CIA. Until 1997, Mr Krongard was chairman of Alex Brown Inc, America's oldest investment banking firm. Alex Brown was acquired by Bankers Trust, which in turn was bought by Deutsche Bank. His last post before resigning to take his senior role in the CIA was to head Bankers Trust -- Alex Brown's private client business, dealing with the accounts and investments of wealthy customers around the world. There is no suggestion that Mr Krongard had advance knowledge of the attacks. Between 6 and 7 September, the Chicago Board Options Exchange saw purchases of 4,744 "put" option contracts in UAL versus 396 call options -- where a speculator bets on a price rising. Holders of the put options would have netted a profit of $5m (3.3m) once the carrier's share price dived after 11 September. On 10 September, more trading in Chicago saw the purchase of 4,516 put options in American Airlines, the other airline involved in the hijackings. This compares with a mere 748 call options in American purchased that day. Investigators cannot help but notice that no other airlines saw such trading in their put options.

It was not just airlines that were targeted by remarkably canny investors. One of the biggest occupants of the World Trade Centre was Morgan Stanley, the investment bank. In the first week of September, an average of 27 put option contracts was bought each day in its shares. The total for the three days before the attacks was 2,157. Merrill Lynch, anotherWTC tenant, saw 12,215 put options bought in the four days before the attacks, when the previous days had seen averages of 252 contracts a day. Copyright © 2001 Independent Digital (UK) Ltd. Reprinted for Fair Use Only. the 911 Commission's explanation. from Nic in New York: On the insider trading, the alibi: A single U. S.-based institutional investor with no conceivable ties to al Qaeda purchased 95 percent of the UAL puts on September 6 as part of a trading method that also included buying 115,000 shares of American on September 10. Ah. "No conceivable ties to al-Qaeda" equated with "no advance knowledge." The assumption is that foreknowledge could come only through an al-Qaeda connection. No mention of stories from London, Frankfurt, Tokyo et al. or of trades in anything other than UAL and AAR put options (WTC tenants, reinvestors).

What about the uncollected $2.5 million? Who was the "small airline" responsible for the puts purchased in London? Al Qaeda has been alleged to have used a variety of illegitimate means, particularly drug trafficking and conflict diamonds, to finance itself. While the drug trade was a source of income for the Taliban, it did not serve the same purpose for al Qaeda, and there is no reliable evidence that Bin Ladin was involved in or made his money through drug trafficking.128 Similarly, we have seen no persuasive evidence that al Qaeda funded itself by trading in African conflict diamonds.129 There also have been claims that al Qaeda financed itself through manipulation of the stock market based on its advance knowledge of the 911 attacks. Exhaustive investigations by the Securities and Exchange Commission, FBI, and other agencies have uncovered no evidence that anyone with advance knowledge of the attacks profited through securities transactions.130. Highly publicized allegations of insider trading in advance of 911 generally rest on reports of unusual pre-911 trading activity in companies whose stock plummeted after the attacks. Some unusual trading did in fact occur, but each such trade proved to have an innocuous explanation. For example, the volume of put options - investments that pay off only when a stock drops in price-surged in the parent companies of United Airlines on September 6 and American Airlines on September 10-highly suspicious trading on its face. Yet, further investigation has revealed that the trading had no connection with 911. A single U. S.-based institutional investor with no conceivable ties to al Qaeda purchased 95 percent of the UAL puts on September 6 as part of a trading method that also included buying 115,000 shares of American on September 10. Similarly, much of the seemingly suspicious trading in American on September 10 was traced to a specific U. S.-based options trading newsletter, faxed to its subscribers on Sunday, September 9, which recommended these trades. These examples typify the evidence examined by the investigation. The SEC and the FBI, aided by other agencies and the securities industry, devoted enormous resources to investigating this issue, including securing the cooperation of many foreign governments. These investigators have found that the apparently suspicious consistently proved innocuous. Joseph Cella interview (Sept.

16,2003 May 7,2004 May 10-11,2004) FBI briefing (Aug.15,2003) SEC memo, Division of Enforcement to SEC Chair and Commissioners,"Pre-September 11,2001 Trading Review," May 15,2002 Ken Breen interview (Apr.23,2004) Ed G. interview (Feb.3,2004). Mike Ruppert describes 911 insider trading. several articles on the insider trading scandals. SUPPRESSED DETAILS OF CRIMINAL INSIDER TRADING LEAD DIRECTLY INTO THE CIA's HIGHEST RANKS. CIA EXECUTIVE DIRECTOR "BUZZY" KRONGARD MANAGED FIRM THAT HANDLED "PUT" OPTIONS ON UAL. Michael C. Ruppert. FTW, October 9, 2001 - Although uniformly ignored by the mainstream U. S. media, there is abundant and clear evidence that a number of transactions in financial markets indicated specific (criminal) foreknowledge of the September 11 attacks on the World Trade Center and the Pentagon. In the case of at least one of these trades -- which has left a $2.5 million prize unclaimed -- the firm used to place the "put options" on United Airlines stock was, until 1998, managed by the man who is now in the number three Executive Director position at the Central Intelligence Agency. Until 1997 A. B. "Buzzy" Krongard had been Chairman of the investment bank A. B. Brown. A. B. Brown was acquired by Banker's Trust in 1997. Krongard then became, as part of the merger, Vice Chairman of Banker's Trust-AB Brown, one of 20 major U. S. banks named by Senator Carl Levin this year as being connected to money laundering. Krongard's last position at Banker's Trust (BT) was to oversee "private client relations." In this capacity he had direct hands-on relations with some of the wealthiest people in the world in a kind of specialized banking operation that has been identified by the U. S. Senate and other investigators as being closely connected to the laundering of drug money.

Krongard (re?) joined the CIA in 1998 as counsel to CIA Director George Tenet. He was promoted to CIA Executive Director by President Bush in March of this year. BT was acquired by Deutsche Bank in 1999. The combined firm is the single largest bank in Europe. And, as we shall see, Deutsche Bank played several key roles in events connected to the September 11 attacks. . (note: most publications refuse to touch this material, one need not defend Larry Flynt's other publications to understand the importance of this interview - no nudity on that page, it is "G" rated) Krongard and Blackwater. This story was on the New York Times website on Saturday, November 17, 2007: State IG's Brother Quits Blackwater. By THE ASSOCIATED PRESS. Published: November 17, 2007. Filed at 5:34 a. m. ET. WASHINGTON (AP)-- The brother of embattled State Department Inspector General Howard Krongard quit as an adviser to Blackwater Worldwide on Friday, two days after the relationship with the security contractor was sharply criticized by a congressional oversight committee. Erik Prince, Blackwater's top executive, said the conflict-of-interest questions raised by the connection prompted Alvin ''Buzzy'' Krongard to submit his resignation. ''I have reluctantly accepted it,'' Prince said in a statement. It's unclear whether the move will salvage Howard Krongard's damaged credibility and career, however.

The House Oversight and Government Reform Committee plans to meet in December to determine if Howard Krongard testified truthfully about his brother. Alvin Krongard never received any payment for his work on Blackwater's advisory board, which only met once, Prince said. Prince said there are no allegations of impropriety against Alvin Krongard for his membership on Blackwater's board, a group recently created to help the North Carolina-based security company plan future business activities. Blackwater is a major State Department contractor and the subject of ongoing federal investigations. One of those is examining whether Blackwater guards violated use-of-force rules during a Sept. 16 shooting in Baghdad that left 17 Iraqis dead. Prince said there is no evidence that Howard Krongard's ability to perform his oversight duties was compromised by Alvin Krongard's relationship with Blackwater. ''The publicized allegation of an 'apparent conflict of interest' against his brother Howard, with whom Buzzy has not been close for years, is just that, an allegation,'' Prince's statement said. Alvin Krongard's departure from Blackwater's board comes two days after the connection was made public during a hearing by the House Oversight and Government Reform Committee. In sworn testimony Wednesday, Howard Krongard was asked by Democratic members of the committee about his brother's ties to Blackwater, and he angrily said there weren't any. But when confronted by committee members with evidence Alvin Krongard had joined the board, Howard Krongard called his brother during a hearing break and was told he attended a Blackwater advisory board meeting in Williamsburg, Va., on Monday and Tuesday. Before that conversation, Howard Krongard said he was not aware of the link. Howard Krongard then told the committee he was recusing himself from any inquires related to Blackwater.

On Thursday, however, Alvin Krongard challenged Howard Krongard's version of events. According to the oversight committee's chairman, Rep. Henry Waxman, D-Calif., Alvin Krongard called the committee and said he had told his brother well before Wednesday's hearing about his decision to become a strategic adviser to Blackwater. In a move that further escalated the differences, Howard Krongard's attorney on Friday sent Waxman a copy of notes she said Howard Krongard took during an Oct. 31 conversation with his brother. The call was initiated by Howard Krongard and lasted 10 minutes, said attorney Barbara Van Gelder. ''No financial interest whatsoever,'' the notes read, referring to Alvin Krongard's explanation of his status with Blackwater. ''Was on short list for advisory board but not taking it.'' In a side note to himself on the same page, Howard Krongard wrote, ''Why would anybody go on the board now?'' Asked to reconcile the conflicting versions, Van Gelder called the situation ''he said, he said.'' ''These discrepancies between the testimony of Howard Krongard and the information from Buzzy Krongard raise questions about the truthfulness of Howard Krongard's testimony,'' Waxman said in a memo delivered Friday to committee members. The union that represents U. S. diplomats on Friday repeated its call for Krongard to step down. ''We still believe he should step aside temporarily until this issue has been fully resolved by the appropriate bodies,'' said John Naland, president of the American Foreign Service Association. Waxman said he plans to invite the Krongard brothers to testify at the December hearing.

If both appear, it's likely to be a chilly reunion. They speak rarely. Alvin Krongard contacted the committee after receiving a letter from Waxman seeking information about his connections to Blackwater and any communication he may have had with Howard Krongard about the company. Alvin Krongard said he was watching his brother testify on television and heard him say there was no Blackwater connection. ''You could have blown me over,'' Alvin Krongard told the committee, according to Waxman's memo. Alvin Krongard recounted for the committee the conversation he had with his brother prior to the hearing. '''He asked me whether I had any financial interest or any ties to Blackwater, and so I told him 'I'm going on their board,''' Alvin Krongard told the committee, according to Waxman's memo. ''He responded by saying, 'Why would you do that?' and 'Are you sure that's a good idea?''' It was his decision to make, Alvin Krongard told his brother, and ''we just differed on that,'' according to Waxman's memo. Van Gelder, Howard Krongard's attorney, asked Waxman not to hold the December hearing. ''There is no legitimate legislative purpose to be gained by publicly pitting two brothers against each other,'' she said in a letter to Waxman. The role of the advisory board is to offer ''leadership advice'' on the paths Blackwater should take to expand its business, according to the company. Prince invited Alvin Krongard to join the board in July.

Expenses for attending board meetings would be covered and board members would receive a $3,500 honorarium for each meeting attended. The money could be paid to them or to a charity of their choice. In addition to recusing himself from matters related to Blackwater, Howard Krongard also said he is no longer involved in corruption investigations related to the flawed construction of the U. S. Embassy in Baghdad, a $600 million project that is beset by logistical delays and security concerns. Associated Press writer Matthew Lee contributed to this report. U. S. Suggests, Without Proof, Stock Adviser Knew of 911. By ALEX BERENSON. Published: May 25, 2002. A San Diego stock adviser who is accused of bribing an F. B.I. agent to give him confidential government information may have had prior knowledge of the Sept. 11 attacks, a federal prosecutor said yesterday. But a judge disregarded that contention and the adviser's lawyer called the allegation ludicrous. In a court hearing in San Diego, Kenneth Breen, an assistant United States attorney, said the adviser, Amr Ibrahim Elgindy, tried to sell $300,000 in stock on the afternoon of Sept. 10 and told his broker that the stock market would soon plunge. ''Perhaps Mr. Elgindy had preknowledge of Sept. 11, and rather than report it he attempted to profit from it,'' Mr. Breen said.

Mr. Breen, coordinator of the stock market unit of a government task force set up to investigate financing for terrorist groups, offered no other evidence that Mr. Elgindy had prior knowledge of the attacks. A lawyer for Mr. Elgindy said the allegation appeared to be motivated by the fact that Mr. Elgindy is Muslim and was born in Egypt. Senior F. B.I. officials also said they had no evidence that Mr. Elgindy had prior knowledge of the attacks. In the hearing yesterday, Mr. Breen asked Judge John A. Houston of Federal District Court in San Diego to hold Mr. Elgindy without bond. Mr. Elgindy, also known as Tony Elgindy and Anthony Pacific, recently moved $700,000 to Lebanon and is a serious flight risk, Mr. Breen said. Judge Houston disregarded Mr. Breen's claims about Mr. Elgindy and Sept. 11. But the judge said there was enough other evidence that Mr. Elgindy might flee to justify detaining him at least until a June 6 hearing to determine whether he should be moved to New York for a trial. Jeanne Geren Knight, a lawyer for Mr. Elgindy, said after the hearing that Mr. Breen's allegations were ludicrous and untrue. ''The government, for lack of factual evidence, has decided to smear my client with terrorist innuendoes,'' Ms. Knight said. ''This is smacking of racial profiling.'' Mr. Elgindy and four other people, including one current and one former F. B.I. agent, were charged Wednesday with using confidential government information to manipulate stock prices and extort money from companies. Jeffrey A. Royer, who was an F. B.I. agent before joining Mr. Elgindy's stock advisory firm in December, accepted $30,000 from a partner of Mr. Elgindy's in exchange for providing Mr. Elgindy with information about current criminal investigations of companies, prosecutors allege. Mr. Elgindy and his partner, Derrick W. Cleveland, sold short the shares of companies that they learned were under investigation, according to the indictment. (Short sellers borrow shares and sell them, hoping to buy them back later at a lower price and pocket the difference.

) Then Mr. Elgindy publicized the negative information on two Web sites he ran, hoping that the companies' stocks would fall, prosecutors say. At the hearing yesterday, Mr. Breen said that on the afternoon of Sept. 10, Mr. Elgindy contacted his broker at Salomon Smith Barney and asked him to sell $300,000 in stock in his children's trust funds. During the Sept. 10 conversation, Mr. Elgindy predicted that the Dow Jones industrial average, which at the time stood at about 9,600, would soon crash to below 3,000, Mr. Breen said. Mr. Elgindy was unable to sell the stock before markets closed Sept. 10, and it was instead sold Sept. 18, the first day that markets reopened for trading after the attacks, Mr. Breen said. The Salomon Smith Barney broker contacted the F. B.I. after the attacks to report the conversation, Mr. Breen said. He did not identify the broker.

A spokesman for Salomon Smith Barney confirmed that Mr. Elgindy was a client but said that Salomon did not comment on matters relating to its clients. Mr. Elgindy also transferred more than $700,000 to Lebanon in the months after the attacks, Mr. Breen said. When F. B.I. agents raided Mr. Elgindy's home outside San Diego on Wednesday, Mr. Breen said, they found $43,000 in cash, as well as a loose diamond and faxes indicating that Mr. Elgindy had been tipped about the raid and had given his wife a power of attorney to liquidate his assets. Ms. Knight, Mr. Elgindy's lawyer, denied that Mr. Elgindy had any prior knowledge of the attacks. Mr. Elgindy's wife is from Louisiana, Ms. Knight said, adding that his mother was a pediatrician and his father a professor. ''Tony isn't political at all,'' she said. ''He's a capitalist. He's not going to move to a third world country.'' Senior law enforcement officials said yesterday that investigators had no hard evidence that Mr. Elgindy had advance information about the Sept. 11 attacks.

So far, they have not found anyone who had prior knowledge of the attacks, they said. But they said the investigation into why Mr. Elgindy tried to sell the shares in his children's trust accounts before Sept. 11 had raised questions that had not been fully answered. Mr. Elgindy has been an active supporter of Muslim causes. In 1999, he arranged to bring 30 Muslim refugees from Kosovo to the United States, according to The Daily Herald of Chicago. Mr. Elgindy said the violence in Kosovo, Serbia's southern province, appalled him, comparing it to the shootings at Columbine High School in Colorado. ''Take Columbine, have it occur five times a day for a year, and that's Kosovo,'' Mr. Elgindy told The Daily Herald. Mr. Elgindy's father and brother are also active in Arab and Muslim causes. His father, Ibrahim Elgindy, founded an umbrella group of Muslim organizations in Chicago and led a 1998 protest on behalf of Muhammad A. Salah, whose assets were seized that year after the United States government linked Mr. Salah to Hamas, the radical Palestinian group. Mr. Elgindy's brother, Khaled, has worked for several Arab political groups. Neither Ibrahim Elgindy nor Khaled Elgindy has ever been linked to terrorism. Khaled Elgindy did not return calls yesterday. Ibrahim Elgindy could not be reached for comment.

Mr. Elgindy himself publicly criticized the Sept. 11 attacks. In a press release that day, his company, Pacific Equity Investigations, said, ''We must seek, find, apprehend and destroy those who are responsible for this terrorist attack.'' Two days later, Mr. Elgindy put out another press release, saying that he had forwarded to the F. B.I. and the Securities and Exchange Commission ''many Internet posts and messages that may have relevance on this tragedy and the capture of the responsible parties behind it.'' He also asked that investors refrain from selling short the stocks of any United States companies or the United States dollar. Mr. Elgindy sold the shares in his children's trusts five days later.