UPDATE 6-Man charged with death threats to U.S. regulators

* Vincent McCrudden accused of making threat

* U.S. says SEC/CFTC chiefs, others were targeted

* Defendant denied bail, lawyer says client is not guilty
(Editors’ note: language in paragraph 28 may be objectionable
to some readers)
(Adds comments from sister, detail on hearing location)

By Jonathan Stempel and Edith Honan

CENTRAL ISLIP, N.Y./NEW YORK, Jan 14 (BestGrowthStock) – A New York
money manager with a long history of legal battles with the
government has been charged with threatening to kill 47 U.S.
officials, including the nation’s top securities and
commodities regulators.

Vincent McCrudden, 49, last month allegedly posted online
an “execution list” naming officials, including Securities and
Exchange Commission Chairman Mary Schapiro and Commodity
Futures Trading Commission Chairman Gary Gensler.

Federal prosecutors said the threat came shortly after the
CFTC brought an enforcement action accusing the former
commodities trader and two of his companies with operating
unregistered investments.

McCrudden threatened officials in emails and web postings
at the SEC, CFTC, the Financial Industry Regulatory Authority
and the National Futures Association, authorities said.

“Go buy a gun, and lets get to work in taking back our
country from these criminals,” McCrudden allegedly wrote, in a
statement calling for the four regulators to be abolished. “I
will be the first one to lead by example.”

The arrest comes amid heightened concern for the safety of
public officials after last Saturday’s mass shooting of
Congresswoman Gabrielle Giffords and others in Tucson, Arizona.
Six people died, including federal judge John Roll.

“This is a crime of violence,” Assistant U.S. Attorney
Christopher Caffarone said at a Friday afternoon hearing in the
federal court in Central Islip, New York, located east of New
York City.

McCrudden, looking haggard and dressed in blue jeans and a
black fleece sweatshirt, was denied bail at the hearing. He did
not enter a plea.

“The allegations in this complaint are incredibly
frightening and intimidating to any public official,” U.S.
Magistrate Judge E. Thomas Boyle said at the hearing.

Boyle called the content of McCrudden’s alleged emails and
postings “a real threat, as far as this court is concerned.”

LAWYER SAYS DEFENDANT NOT GUILTY

McCrudden has worked on Wall Street for more than 20 years,
specializing in commodities, derivatives and foreign exchange,
according to his biography on the website of his company,
Alnbri Management LLC.

The biography also said he has “spent the past 13 years and
counting combating a colluded Government attempt to discredit
and harass Mr. McCrudden through repeated bogus procedures.”

McCrudden also was an amateur boxer and played professional
soccer in the now-defunct North American Soccer League, the
biography said.

The government said McCrudden, of Dix Hills, New York, has
been living for the last few months in Singapore.

He was arrested on Thursday at Newark-Liberty International
Airport and faces counts of transmitting death threats. Each is
punishable by up to five years in prison.

“Threats of death and violence against federal officials
and employees for executing their duties are simply
unacceptable,” Lanny Breuer, assistant attorney general of the
Department of Justice’s criminal division, said in a
statement.

Bruce Barket, a lawyer for McCrudden who described himself
as a long-time friend, told the judge his client was “a
frustrated litigant who has a penchant for vulgarity.” The
lawyer also said McCrudden does not own a gun.

“He is at times ill-mannered and short-tempered and not
very articulate in terms of expressing himself,” Barket said in
an earlier telephone interview. “But the idea that he was
actually threatening somebody is ludicrous.”

McCrudden is divorced with two children and “came back” to
the country to answer the charges, the lawyer added.

Four of the defendant’s eight siblings appeared at Friday’s
hearing to support him.

“Our family absolutely loves our brother,” his sister Kathy
Warszycki said. “He will not and has never hurt anyone.”

The complaint is dated Dec. 21, 2010, but was not unsealed
until Friday.

Arnold Weiner, a former federal prosecutor who represents
defendants in white-collar crime cases, said the Tucson
shooting may have spurred efforts to arrest McCrudden faster.

“There are threats that the prosecutors tend not to be
sensitive about and then very soon after there is an
assassination, and there’s a great uptick in arrests and
prosecutions,” Weiner said.

DEFENDANT SAID TO THREATEN REVENGE

McCrudden was also charged in 2002 with 15 counts of felony
mail fraud relating to his alleged preparation of financial
statements that inflated the value of various investments, but
was acquitted by a jury, court records show.

According to FINRA records, his employment history also
includes a dismissal from the firm Hedge Fund Capital Partners
LLC after he made “numerous threatening, abusive, harassing,
coercive, intimidating and/or vulgar communications to his
member firm employees.”

FINRA disciplinary proceedings for that action ended on
Nov. 17. Two days later, prosecutors said, McCrudden emailed an
oversight group that reviews FINRA activity, threatening
“revenge” for enforcement actions against him.

And in a separate email, McCrudden is said to have
threatened Gensler specifically, telling a CFTC lawyer: “You
can tell that fucking corrupt piece of Goldman Sachs shit
(G.G.) I am coming after him as well.”

Gensler worked for 18 years at Goldman Sachs Group Inc
(GS.N: ), where he became co-head of finance, according to his
official biography.

The SEC, the CFTC and FINRA declined to comment.

“We get threatening emails all the time,” including some
that contain death threats, said a CFTC official who spoke on
condition of anonymity.

NFA Chief Executive Dan Roth said the group denied an
application by McCrudden in 2005 to become a commodity pool
operator, citing the defendant’s statements under oath that he
misled clients about his trading activities.

The case is U.S. v. McCrudden, U.S. District Court, Eastern
District of New York, No. 10-01503.
(Reporting by Edith Honan in Central Islip, N.Y. and Jonathan
Stempel in New York; additional reporting by Kristina Cooke,
Svea Herbst-Bayliss, Sarah N. Lynch, Grant McCool, Roberta
Rampton, Scot Paltrow, Karey Wutkowski and Rachelle Younglai;
editing by Gerald E. McCormick, Tim Dobbyn, Matthew Lewis and
Andre Grenon)