Saturday, 31 January 2015
Last updated 12 hours ago
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.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…