Jailed Kinnucan Won't Settle SEC Case

Mar 5 2013 | 10:47am ET

John Kinnucan, the expert-network analyst who pleaded guilty last year to passing confidential corporate information to hedge funds, may be behind bars, but he's driving a hard bargain with the Securities and Exchange Commission.

Kinnucan has refused to settle the SEC's insider-trading lawsuit against him, despite his previously telling the regulator that he planned to. "I spoke with him again today and he informed me that he now does not intend to attempt to settle this matter," SEC lawyer Mathew Watkins told U.S. District Judge Alison Nathan yesterday.

Kinnucan was sentenced to 51 months in prison in January for conspiracy and securities fraud. He is serving as his own lawyer in the SEC case, from his Brooklyn, N.Y., jail cell.

The Broadband Research founder's intransigence with the SEC is a reminder of his attitude prior to his guilty plea in July. Kinnucan achieved a measure of fame when he e-mailed his clients, including employees of Coatue Management, Citadel Investment Group, Maverick Capital and SAC Capital Advisors, telling them that he declined the offer of "two fresh-faced eager beavers from the FBI" to cooperate in the insider-trading probe. After he was charged, he left at least 24 threatening voicemails with prosecutors, FBI agents and cooperating witnesses.

Nathan told the SEC to file a motion for a ruling before trial by March 22. Kinnucan will have until April 19 to respond.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.