SEC Calls For $4.75 Million Penalty Against Kinnucan

Mar 26 2013 | 11:59am ET

The Securities and Exchange Commission can play hardball, too. The regulator is seeking $4.75 million—a triple penalty—against expert networker John Kinnucan, who refuses to settle the SEC's lawsuit against him even after pleading guilty to passing confidential corporate information to hedge funds.

The SEC, which is seeking summary judgment against Kinnucan, said the Broadband Research founder deserves the huge penalty due to his "egregious" behavior, notably, a series of abusive and threatening communications with prosecutors, Federal Bureau of Investigation agents and cooperating witnesses beginning shortly after he refused the FBI's request that he cooperate—and then sent an e-mail to his clients regaling them of the tale.

In addition, the SEC said that while "Kinnucan pleaded guilty to securities fraud"—and been sentenced to 51 months in prison for it—"he has not accepted responsibility for his misconduct before the commission" and plans to defend his "flagrant and involved" actions against the SEC lawsuit.

Kinnucan, who is acting as his own attorney in the SEC matter, told regulators earlier this month that he would not accept a settlement. He pleaded guilty last year.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Nicky Hilton To Wed James Rothschild

Aug 20 2014 | 5:23am ET

When it comes to husband-material, socialite Nicky Hilton is sticking with finance...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note